The 2012 Green Electricity Act – a milestone in Austrian energy policy

With the passing today by the Austrian federal parliament of the 2012 Green Electricity Act, a solid foundation has been created for the further expansion of wind energy in Austria.

Following decisive amendments to the government bill presented by the federal economics minister, Reinhold Mitterlehner, and a sizable increase in the size of the grants to be made available, the results can more than withstand international comparison. In particular, from the perspective of investors, the targets for 2020, the sizable topping up of subsidies, the reduction of the funding backlog and the removal of hurdles regarding green electricity grants are all of seminal importance.

The new law envisages that by 2020 existing capacity of 1,011 MW will be increased by a further 2,000 MW of wind energy. New plant will generate 4.3 billion kWh of electricity, which from a current viewpoint would constitute a doubling of output and correspond roughly with the consumption of 1.2 million households. The construction of this capacity will involve an investment volume of EUR 3.2 billion and create domestic value added totaling around one billion euros. A further EUR 2.2 billion will derive from operations. In addition, wind energy expansion will result in 15,000 seasonal jobs and over 1,000 permanent posts. The costs of wind energy subsidies are moderate and depending on market price development will amount to a maximum of EUR 8 per household.

A one-off, additional annual grant volume of EUR 80 million is foreseen for the reduction of backlog. This funding will ensure the rapid construction of wind energy plants with capacity of 670 MW.

Relevance for W.E.B

The newly approved statute will also have positive results for W.E.B, as it has almost 40 MW that are ready for construction. Another 40 MW are in an advanced stage of planning and a further 150 MW are undergoing planning preparations. Therefore, in the coming decade, WEB Windenergie AG is set to grow considerably in its domestic Austrian market and make further investments.

At present, 625 wind energy plants in Austria with a total capacity of 1,011 MW supply power to the national grid. These systems generate approximately 2.1 billion kWh of clean electricity and thus meet the needs of 600,000 households. Following expansion in line with the objectives of the new Green Electricity Act, in 2020 wind energy plants with a capacity of 3,000 MW will feed over 6.5 billion kWh of renewable electricity into the grid and thus power for roughly 1.8 million households.