Federal Act on the Expansion of Energy from Renewable Sources goes into review

Nov 20, 2020 Benn-Ibler Rechtsanwälte

On 16 September 2020, the Federal Act on the Expansion of Energy from Renewable Sources (Bundesgesetz über den Ausbau von Energie aus erneuerbaren Quellen, EAG) was sent for review. The new act regulates the conditions for and the promotion of the generation of electricity from renewable sources. Furthermore, it enables the organization of renewable energy communities. The law serves the implementation of European legal requirements.

The federal government has declared it as its goal that the total electricity consumption from 2030 onwards will be covered 100% nationally from renewable energy sources and that Austria's climate neutrality will be achieved by 2040. For this reason, the EAG intends

- to promote the production of electricity from renewable sources in accordance with the principles of Union law;

- to increase the production of electricity from renewable sources in terms of both share and quantity;

- to ensure the energy-efficient, resource-saving, market-conforming and competitive generation of electricity from renewable sources;

- to ensure investment security for existing and future plants;

- to enable the association of citizens with local authorities and SMEs to form renewable energy communities;

In order to achieve the target values, electricity generation from photovoltaics, wind power, hydropower and biomass is to be increased by 27 TWh in terms of volume. The generation of electricity from renewable sources can be supported by a market premium, which is aimed at compensating, in whole or in part, the difference between the production costs of electricity from renewable sources and the average market price of electricity for a certain period of time.

The review phase will end on 28 October 2020. According to the Federal Government, the EAG is to come into force as early as the beginning of 2021.

BMK, Draft of the Federal Act on the Expansion of Energy from Renewable Sources (Bundesgesetz über den Ausbau von Energie aus erneuerbaren Quellen, EAG) (16 September 2020)