Germany’s RWE has announced plans to develop a €750 million lignite-fired power plant in Visonta, Hungary.

Operating with an efficiency rate of over 41%, this will be one of the most modern power plants in Eastern Europe, RWE says. The 400 MW plant and associated open-cast lignite mine at Bükkábrány, which is to be expanded, is subject to approval by local utility Mátra, in which RWE Power has a stake of 50.9%. Other major shareholders are the state power company Magyar Villamos Müvek (MVM), which holds 25.5 %, and EnBW, holding 21.7 %.

Jan Zilius, chairman of RWE Power, stressed that the realisation of this project is subject to stable political framework conditions. The key factor being that the second National Allocation Plan for the second emissions trading period (2008 – 2012) needs to guarantee a sufficient allocation of emission allowances for the next 14 years.