Renewable Energy and Smart Grids Market in Austria

Austria is an international pioneer in the utilisation of renewable energy sources. Around one-third of the primary energy consumption in Austria originates from domestic production, which is characterized by a high share of renewable energy sources (RES) (87% in 2023).^{Footnote 1}

For electricity, more than 76% is currently generated from renewable sources. As a result, Austria is one of the most CO2-efficient European Union (EU) countries in the electricity sector, despite its renunciation of nuclear energy.

However, a rapid expansion of renewable energy in Austria is essential to achieve the country's self-imposed target of climate neutrality by 2040, which is more ambitious than the EU target.

Austria is a frontrunner in the development of decentralized energy systems and highly interconnected smart infrastructures. Austria has more than 200,000 km of overhead and underground power lines.^{Footnote 1} Several model regions for the roll-out of smart meters have been established in Austria over the course of the research activities being conducted and field tests carried out in these regions.^{Footnote 2} At the end of 2023, around three quarters of all households have been equipped with smart meters and two thirds of the 6.4 million metering points have been upgraded to smart meters.^{Footnote 3}

Key opportunities for Canadian cleantech companies in Austria

• Austrian companies are leaders in terms of R&D of next-generation clean technologies and well established in the European market.
• C2PAT^{Footnote 4} is Austria's largest carbon capture and utilisation (CCU) project which aims to capture 750,000 tons of CO2 at Lafarge's cement plant in Mannersdorf annually. The company is partnering up for the joint planning and construction of a full-scale plant by 2030 to capture CO2 and process it into synthetic fuels, plastics, or other chemicals.
• The demand for PV battery storage systems in Austria has gained momentum due to a growing desire for energy autonomy amongst private households combined with falling prices and public subsidies.^{Footnote 5} In 2023, Austria recorded a budget of € 600 million to support the solar expansion.^{Footnote 6}
• Currently wind power accounts for about 10% of Austria's total electricity output. However, the storage of this volatile energy source still poses challenges for Austria.^{Footnote 1}
• The technology platform Smart Grids Austria is an association of stakeholders in the electrical energy supply sector aiming at combining all strengths for future intelligent electricity grids.

Notable challenges for Canadian renewable energy companies in Austria

• The small- and medium-sized enterprise (SME)-type structure of energy providers in Austria hinders joint tenders for large-scale projects, as risk-averse, region-specific utility companies, often majority-provincial government-owned, prefer localized operations.
• A challenge lies in the lack of interoperability among existing networks, posing difficulties for Canadian renewable energy companies aiming for seamless integration.
• Legal barriers, such as restrictions on network operators owning storage facilities and engaging in electricity trading, pose additional challenges.

Austrian business landscape

• The business landscape is driven by a flexible SME structure, providing a high degree of flexibility.
• The country has committed itself to high environmental standards, which are supported by both the government and a population with strong environmental awareness.
• Austria has considerable expertise in water and wastewater technology, with a growing trend towards photovoltaic systems.
• Austria provides an appealing business environment with strong research and development funding, a 14% research tax credit for large and small companies, and a corporate tax rate of 25%.

Summary

Austria is a global leader in renewable energy adoption, with 87% of domestic energy production coming from renewable sources in 2023. While excelling in decentralized energy systems and smart infrastructure, Austria aims for climate neutrality by 2040, necessitating a rapid expansion of renewable energy. The Austrian energy system transformation provides significant opportunities for Canadian firms, especially considering the challenges Austria is facing concerning volatile renewable energy sources and the digitalization of the system.

For more information on renewable energy in the Austrian market please contact contact Susanne Knobloch:

Email: Susanne.Knobloch@international.gc.ca
Tel. +43 1 531 38 3354