April 7 (Renewables Now) - Austria's Ministry of Climate Protection and Environment on Wednesday gave the green light to a EUR-300-million (USD 327.6m) investment subsidy budget for green energy in 2022 which is seen to be enough to add 1 TWh of electricity.

The bulk of the investment subsidies, EUR 240 million, will go for the installation of new solar photovoltaic (PV) plants. Hydropower projects will be subsidised with EUR 35.4 million while wind and biomass power plants will get investment subsidies totalling EUR 4 million and EUR 6 million, respectively.

The first two calls for applications for subsidies open on April 21. Applications for solar plants of up to 10 kWp with or without an energy storage system will be accepted until May 19 with the total subsidy budget for this category set at EUR 40 million. The call for solar plants from 10 kWp to 1 MWp with or without storage ends on June 2. A total of EUR 60 million in investment subsidies will be allocated for assets in this category.

More calls for solar projects will be launched in August and October.

The approval of the budget is expected to give impetus to the solar expansion in Austria as many projects were put on hold until the details about the investment subsidies become clear.

Solar energy association PV Austria welcomed the decision to quadruple the investment subsidy budget and raise subsidy rates.

The investment subsidy is one of the two mechanisms under the Renewable Energy Expansion Law (EAG) meant to promote investment in green energy in Austria. The other tool is a feed-in tariff which is paid for a period of 20 years to offset the difference between production costs and the fluctuating electricity prices on the market.

(EUR 1 = USD 1.092)

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