Austria Renewable Energy Market| Size, Share, Trends and Forecast to 2028

Austria Renewable Energy Market| Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewables deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of the establishments primarily engaged in operating renewable electric power generation facilities. The power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or to electric power distribution systems.

In Austria, renewable energy sources are quite important. With regard to solar energy, wind power, or electromobility, Austria demonstrates to be a dynamic environment.

Austria Renewable Energy Market Scenario

Austria produces the majority of its electricity from hydropower. This source accounted for 60.2% of the power generated in 2021. Austria produced more than 70% of its renewable electricity in that year, with wind power accounting for 9.8% of that total.

In 2021, renewables accounted for 80.9% of the electricity generation capacity. Among the renewable sources, while hydro remained dominated, solar accounted for 12.2%, and wind accounted for 16% of the electricity generation from renewable energy sources.

Solar Energy in Austria

The capacity of solar PV installations in Austria was 2692 MW by the end of 2021. The capacity increased by 31.8% relative to 2020. In the past decade, each time that the amount of solar photovoltaic installed capacity doubled globally, the price of installing solar panels and modules declined by 34%.

(For more insights and analysis, consider our report on Austria Solar Power Market)

Austria Wind Energy

The installed capacity of wien energie (wind energy) in Austria as of the end of 2021 was 3524 MW. The installed capacity registered an increase of 9.2% relative to 2020. The country's wind energy is solely based on the onshore wind; there are no offshore wind farms in Austria.

(For more insights and analysis, consider our report on Austria Wind Power Market)

Austria Hydropower

Austria uses hydropower to supply the majority of its electricity needs. Peaks and tall waterfalls are the major factors that promote its growth. For instance, 34 peaks and 13 mountains above 3,000 meters high are found in Austria.

In 2021 hydropower constituted 66.1% of the renewable energy generation in Austria.

In the last decade (2010-2020), globally, the electricity generation from all the sources has increased by 2.2%, from 21,570 terawatt-hours to 26,823 terawatt-hours. During the same period, the power generation from renewables increased by 15.25%. The regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy tax credits and subsidies, feed-in tariffs, and competitive auctions helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic electricity has fallen by 85%, and the costs of both onshore and offshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, Renewables were the only energy source for which demand increased in 2020 despite the pandemic, while consumption of all other fuels declined. The share of renewables in the total energy mix grew from 2010 to 2020 and is expected to grow to about 30% by 2030.

In 2021, For the first time ever, wind and solar power generated more than 10% of the world's electricity.

Austria Renewable Energy Policy

The Green Electricity Act serves as Austria's primary legal framework for promoting renewable energy sources. In essence, feed-in tariffs, which are themselves outlined in the Feed-In Tariff Ordinance approved by the Ministry of Science, Research, and Economy, subsidize electricity from renewable sources. The Green Power Settlement Agent is required to enter into agreements with the owners of green power plants and purchase their electricity for the feed-in rates specified in the law as long as finances are available.

The Renewable Energy Expansion Act (Erneuerbaren-Ausbau-Gesetz; "EAG") enshrines Austria's goal of becoming carbon neutral by 2040 and the European Union's target of at least 32% of gross final energy consumption by renewable sources. The EAG also establishes the regulatory framework for renewable energy communities, specifies rules on guarantees of origin for energy from renewable sources, and creates an "integrated Austrian network infrastructure plan" for financing renewables (i.e., a market premium through tendering procedures or investment grants).

In order to promote the shift away from fossil fuels and toward cleaner energy sources and to fulfill the EU's Paris Agreement goals to reduce greenhouse gas emissions, the EU implemented a thorough reform to its energy policy framework in June 2019. The clean energy for All Europeans Package's completion, which is a major step toward the 2015-adopted energy union strategy's implementation, is a new set of energy regulations. It is concentrated on simultaneously promoting energy efficiency, supply security, the growth of renewable energy, and carbon dioxide reduction.

The Electricity Sector Act, also known as the Electricity Economy and Organizations Act of 2010 or "ELWOG," establishes the legal framework for the adoption of regulations governing the production, transmission, distribution, and supply of electricity as well as the management of the electricity industry. Additionally, it intends to provide access to the electrical grid for renewable energy and to encourage the continued advancement of electricity generation from renewable sources.

Recent Developments

In June 2022, the Austrian government introduced a draft bill to phase out fossil fuel heating systems by 2040 and transition to renewable heating. In light of the conflict in Ukraine, the federal government decided to prohibit the installation of gas heating systems in new structures starting in 2023 rather than 2025 as originally intended.

What do we Cover in the Report?

Blackridge Research's Austria Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2027, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Austria.

Furthermore, the report will contain the drivers and restraints within the Austria Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards) as well as country specific regulations. Finally, the presentation would enable us to identify market opportunities and plan for long-term growth.

The impact of the COVID-19 pandemic is an integral part of the report.

This product will be delivered within 3-5 business days.