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The energy industry has been waiting for the Renewable Expansion Law for years. Now everything has to go fast. There are six weeks to review before the law takes effect on January 1, 2021. The first reactions to the law were mostly positive. But there are also criticisms about it.
Both Georg Knill, President of the Federation of Austrian Industries, and ÖGB President Wolfgang Katzian demand that their respective clientele, in Knill, the electricity-intensive companies, in Katzian, the private households, do not suffer too much burden. That is why both stakeholders put a cap on financing costs to subsidize green electricity at stake.
Knill would like to be able to plan both for companies that want to invest in renewable energy and for electricity-intensive companies. “You need a balance between climate and economic success,” Knill told the Austrian Energy Trend Forum on Wednesday night in Vienna.
Ten billion for the energy transition
The President of ÖGB, Wolfgang Katzian, it is important that the costs of the expansion are distributed equally among all participants in the energy market. “Private households are particularly burdened, there has to be a balance,” says the head of ÖGB. So you can imagine the limitation of household financing costs.
Environment Minister Leonore Gewessler (Greens) responded that the mechanism for promoting green electricity remains the same. “We are assuming that we will not deviate significantly from the 120 euros a year.” The amount corresponds to the year 2016. Currently, the costs for private households are around 90 euros per year.
The path to the energy transition is clear. Austria wants to have 100% clean electricity by 2030. To do this, 27 TWh of renewable energy must be built: hundreds of wind turbines, tens of thousands of photovoltaic systems, numerous hydroelectric plants and biomass systems. All of this must be funded and implemented quickly.
The government plans to spend a total of ten billion euros on this over the next ten years. According to Gewessler, this will generate investments of up to 30 billion euros. “There is a very high level of local added value. 70 percent of photovoltaic energy is generated locally,” says Gewessler. This is a major boost to the location. The energy transition would result in a total of ten million tons of COtwo can be saved.
Worry about network reservation
For Michael Strugl, President of Österreichs Energie, the EAG is heading in the right direction. You are basically satisfied, but you demand investment security. The network reservation worries you a lot. “We have to do everything possible to maintain security of supply,” warns Strugl.
Strugl is also critical of planned energy communities. In his opinion, they should be limited to the local level. “The systems are very complex. I hope I am responsible for balancing the energy,” he says. For him, this is all the more important the more volatile the electricity grid is fed from renewable energies.
Gewessler tried to calm himself. Energy communities would help generate acceptance for the energy transition among the population. “Anyone can be part of the great project,” says the environment minister. He also sees new business models in the energy sector.
Controversial issue of land consumption
How the energy transition is affecting the landscape and what areas are available provided some talking points. Strugl, for example, has little understanding of 30 percent discounts for PV area systems. “In our opinion, that seems to be a lot. The plants in the area, in particular, help to achieve the goal by 2030,” he says. Background: the bill establishes that photovoltaic energy is mainly focused on buildings, landfills, that is, areas that have already been sealed, to curb the consumption of land.
“We will have to go to open space,” Strugl is convinced. You don’t even have to reseal the surfaces. He cites agriculture as an example, where, for example, photovoltaic systems are used for shading. It also takes a lot of persuasion. With regard to spatial planning, the competence lies with the state authorities.
Therefore, President Knill demands that permits for projects be granted quickly. “The period until 2030 is extremely short. EIA (environmental impact assessment) procedures often take years.” Bureaucratic obstacles must be removed.
Gewessler can share the concern. He highlighted the simplification of the process. “Now there is only one processing point, there is a lot of relief in it.” She attaches importance to ecological criteria in the EIA procedure. However, she does not want to increase land consumption further. “What we need is the acceptance of the population,” said the environment minister. There is a high level of approval for wind power once it is there.
In the course of expanding renewables, the expansion of the electricity grid must also be taken into account, demanded Austrian Energy President Michael Strugl. “If we have decentralized generation, we have to build the infrastructure for it.” Wolfgang Katzian joins the same chorus: “Without the expansion of the network, it will be a problem,” said the ÖGB boss.
