Hungary: Converting the Mátra Power Plant into a Diversified Hub of Green Energy and Industry

The Mátra Power Plant in northern Hungary is implementing a strategy to phase out lignite by 2029 by integrating solar PV, biomass, and a green industrial park. This approach aims to preserve between 6,800 and 10,000 direct and indirect jobs in a region with lower-than-average GDP. While the plant has successfully installed over 40 MW of solar PV and established an industrial park with 23 firms, it faces challenges including financial losses due to EU CO2 prices, a reliance on EU subsidies for restructuring, and a lack of documented training plans for transitioning coal workers.

• The Mátra Power Plant is transitioning toward a coal phase-out by 2029 through the integration of renewable energy and industrial diversification. The site has installed more than 40 MW of solar PV and established 20 hectares of "energy forests" for biomass production on former mine sites.
• To mitigate job losses in a region with high unemployment and low GDP, the plant created an on-site industrial park in 2007. As of June 2018, this park hosted 23 firms on 300 hectares, employing 1,674 people and generating HUF 23 billion in revenue. Combined, the plant and park support an estimated 6,800 to 10,000 direct and indirect jobs.
• The transition is financially precarious and heavily dependent on external funding. The plant suffered net losses in 2017 and 2018 partly due to EU CO2 prices, leading the state-owned MVM to purchase the plant. The projected cost to phase out lignite by 2029 is HUF 200-300 billion, with significant portions expected from EU subsidies and the EU Modernization Fund.
• Several critical gaps remain in the transition strategy, including a lack of evidence regarding the sustainable production of biomass and a lack of documented training plans or dialogues with coal workers to prepare them for new roles in cleaner energy production.

APA

World Resources Institute (2021). Hungary: Converting the Mátra Power Plant into a Diversified Hub of Green Energy and Industry. https://www.wri.org/snapshots/hungary-converting-matra-power-plant-diversified-hub-green-energy-and-industry

Chicago

World Resources Institute. Hungary: Converting the Mátra Power Plant into a Diversified Hub of Green Energy and Industry. 2021. https://www.wri.org/snapshots/hungary-converting-matra-power-plant-diversified-hub-green-energy-and-industry.

Wikipedia

{{cite report |author=World Resources Institute |title=Hungary: Converting the Mátra Power Plant into a Diversified Hub of Green Energy and Industry |date=1 April 2021 |url=https://www.wri.org/snapshots/hungary-converting-matra-power-plant-diversified-hub-green-energy-and-industry |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2021hungary, author = {{World Resources Institute}}, title = {{Hungary: Converting the Mátra Power Plant into a Diversified Hub of Green Energy and Industry}}, institution = {World Resources Institute}, year = {2021}, month = apr, url = {https://www.wri.org/snapshots/hungary-converting-matra-power-plant-diversified-hub-green-energy-and-industry}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }