Austria launches market premium to support renewables

Austria on Wednesday introduced a market premium, which along with the investment subsidy launched earlier this year, should spur the deployment of renewables across the country.

The market premium is part of the Renewables Expansion Act (EAG) and is meant to compensate for the difference between the production costs of electricity from renewables and the average market price for electricity. The subsidy is paid for a period of 20 years for wind, solar photovoltaic, biomass, biogas and hydropower plants.

The first tender will be held on November 15.

The market premium is a key element to support the expansion of renewable energy in Austria as it promotes large-scale power plants that generate clean electricity, said climate protection minister Leonore Gewessler.

More than EUR 355 million (USD 350.03m) is already available for the construction of small plants as part of the investment subsidy under the EAG. Unlike the market premium, the investment subsidy provides financial support for the construction of power plants.

The Alpine country is set to tender 700 MW of solar in each of 2022 and 2023, 390 MW of wind in 2022 and 400 MW of wind next year. Auctions are planned also for 15 MW of biomass in each of the two years as well as 90 MW of hydropower this year and 170 MW in 2023. The quotas for biogas for power generation are set at 1.5 MW for each of 2022 and 2023.

(EUR 1 = USD 0.986)

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