PROJECT DESCRIPTION
BACKGROUND
The National Energy and Climate Plan (NECP) is a key strategic document in the climate and energy policy of Hungary, adopted on 8 January 2020 by the Government. It has five priority dimensions: decarbonisation; energy efficiency; energy security; internal energy market; and research, innovation and competitiveness. Key objectives of the NECP include: reduction of greenhouse gas (GHG) emissions of Hungary by 40% by 2030 compared to 1990 levels; reduction in the share of the energy sector in Hungarian GHG emissions from 70% to 17%; increase in the share of renewables up to 20% for national electricity consumption; phase-out of lignite-fired units and decarbonisation of Mtra Power Plant; reducing import dependency in the electricity sector through the diversification of import sources, expansion of renewable energy technologies and maintaining nuclear capacities; increasing investments in energy storage; and maximising the economic development potential of energy innovation for climate action.
Mtra Power Plant (MPP) is the second largest power plant in the Hungarian electricity production system. It accounts for nearly 50% of the total energy sector GHG emissions. The above strategic priorities of the NECP cannot be achieved without the gradual phase-out of the lignite-fired units of the MPP.
OBJECTIVES
The overall objective of the LIFE-IP North-HU-Trans project is to catalyse the full implementation of the National Energy and Climate Plan (NECP), and reduce the GHG emissions of the Hungarian electricity production system by nearly 50% (equal to the 14% share of total CO2). In particular the project will contribute to the decarbonisation of the Mtra Power Plant (MPP), the last remaining lignite power plant in the Hungarian electricity system and a major source of GHG emissions, by 2030. The project aims to mitigate the potential negative socio-economic, energy and environmental consequences of the lignite phase-out, specifically in northern Hungary.
Specific objectives:
Roadmap and implementation of the gradual phase-out of the lignite-fired units of the MPP and the gradual retirement of its open-pit lignite mines by 2030. Reduction of the total GHG emission of Hungary by 14% (approximately 6.5 million tons of CO2 annually); Replacing all the existing lignite-fired power generation units of the Hungarian electricity production system, which are currently operating in the MPP, with low-carbon technology solutions, primarily with renewable energy and energy storage, and secondarily with natural gas technologies. The project will catalyse the replacement of 884 MW of lignite-fired capacity by developing, testing and evaluating innovative prototypes, and the preparation for large low-carbon energy generation technologies, to support the expansion of renewable energy technologies; Developing the prototype solutions designed for post-mining sites of the MPP further, so they can be replicated across Hungary; Complementary actions and the mobilisation of complementary funds for the replacement of the lignite-fired power generation units of MPP with low-carbon technologies; Develop, test and evaluate innovative flexibility solutions, such as energy storage and network solutions, to support the expansion of renewable energy generation. The project helps implement the National Energy and Climate Plan (NECP) of Hungary, and EU policy related to climate change mitigation, including Regulation 2018/1999 EU on the Governance of the Energy Union and Climate Action) and the EU 2030 climate and energy framework.
In addition to the IP budget itself, the project will facilitate the coordinated use of 2 661 526 628 of complementary funding from Infrastructural OPs, CEF, Modernisation Fund, and other national and private funds, as applicable.
RESULTS
Expected results:
First full lignite phase-out and regional transition completed in Eastern Europe by 2030, ready for replication; Gradual phase-out of the total 884 MW lignite power capacities in Hungary by 2030; The closure of the two existing open-pit lignite mines of Hungary by 2030; Elimination of 6.5 million tons of annual CO2 emission which represents almost 14% of total CO2 emissions of Hungary, and nearly 50% of the total CO2 emissions of the Hungarian electricity sector; <:li>Five innovative prototypes that will demonstrate how the replacement of lignite-fired capacities can be achieved by using unique carbon-neutral technologies;
One innovative prototype ofcombined energy community and households energy efficiency to replace residential lignite use and reduce energy poverty; Innovative technologies will be identified to further promote the market; Flexible solutions for weather-dependent renewable technologies, using energy storage and networks, to improve system stability; 250 companies among the 951 affiliated and supply chain companies of MPP will enter new markets and supply chains; 500 workers and miners of MPP will gain new skills and knowledge that will help them improve their value on the labour market and stay within the region; and Territorial Just Transition Plan for Heves and Borsod-Abaj-Zempln counties.
