Austrian power producers estimate that electricity demand will rise to 135 to 140 terawatt hours (TWh) by 2040, which is twice today’s consumption. Demand will rise to around 100 TWh by 2030. The Austrian network infrastructure plan (ÖNIP) even assumes a larger amount of electricity, namely not an additional 27 TWh by 2030 (as stated in the Renewable Energy Expansion Act), but an additional 39 TWh.
This doubling of the quantity means a doubling of the generation capacity, explained Strugl. “In Austria we have a good 2,000 hours of wind, we have around 1,100 hours of sunshine, but the year has 8,760 hours.” That’s why an “incredible expansion of networks and storage” is necessary.
Electricity currently covers around a fifth of all energy consumption in Austria. Significantly more than half of final energy consumption is covered by fossil fuels – especially oil in transport and gas in production.
Ambitious goals
Austria has particularly ambitious climate goals and therefore needs to expand renewables more quickly. “If you roughly assume that we have a gross final energy consumption of 300 TWh in Austria, about a third of which is currently renewable, then we should decarbonize the remaining two thirds, i.e. 200 TWh by 2040. That is the ambition that is actually challenging is.”
The electricity transmission networks are currently “at their limit,” said the Verbund boss. Last year, intervention had to be made on 237 out of 365 days to stabilize the system (“redispatch”). Electricity customers would have paid the cost of 100 million euros. This year we will have to intervene to a similar extent, with even higher costs. Verbund and its wholly-owned subsidiary APG originally planned an investment volume of 3.5 to 4 billion euros for the transmission networks – essentially 380 and 220 kV lines – by 2030. It is now assumed that an investment of 9.1 billion euros will be required by 2034 in order to build around 900 km of additional lines, additional substations and transformer stations.
15 billion investment
“Verbund will invest more than 15 billion euros in networks, generation and storage this decade,” said Strugl. There is already an agreed investment plan for the next three years with a volume of 4.6 billion euros. Of this, 1.7 billion will flow into the grids, 1.2 billion into hydropower and 1.1 billion into renewable generation from sun and wind. There are more than 20 hydropower projects in the pipeline.
The expansion of the Reißeck storage group in Carinthia’s Mölltal is scheduled to be completed in 2024. The Limberg 3 project in Kaprun is scheduled to be completed in 2025, where around 580 million euros will be invested in an additional 480 MW of flexibility. The Gratkorn power plant will go into operation next year. The groundbreaking ceremony for the Stegenwald power plant took place this year and is scheduled to be completed in 2025, when the Salzburg line is also scheduled to go into operation. There are a whole series of revitalization projects, reported Strugl.
Financing from cash flow
The association can finance a large part of these projects from cash flow. “We have very good results, and with the money we earn we can manage our investments accordingly.” Every euro earned that remains after deducting taxes, collecting the energy crisis contribution and paying out the dividend is invested. 80 percent of the dividend would flow to public owners.
Although the profit skimming is painful, the energy crisis contribution to electricity is regulated “relatively sensibly” in Austria because 50 percent of the investments made can be credited. The levy amounted to 77 million euros by the third quarter.
What is still missing for faster infrastructure expansion is the appropriate framework conditions. The Electricity Industry Act, the successor law to the ElWOG, is “a bit behind schedule, to put it diplomatically.” This is the most important basic law with which the internal electricity market directive is to be implemented. “It should come soon now to avoid infringement proceedings.” The Renewable Energy Expansion Acceleration Act (“EABG”) is also still pending. For example, areas would have to be designated where wind turbines and PV systems can be located. Strugl would also like to see an authority where all procedures are concentrated, as well as an exemption from approval for smaller systems.
