Renewable

December 23 (Renewables Now) - The European Commission (EC) this week approved an Austrian scheme to support renewable electricity generation in line with the country’s target of 100% renewable electricity by 2030, which is included in its Recovery and Resilience Plan.

Under the scheme, Austria will support electricity produced from wind, solar, hydro, biomass and biogas by providing a top-up premium, which cannot exceed the difference between the electricity market price and the average production cost for each renewable technology. For wind, solar and biomass, the aid will be awarded through technology-specific competitive tenders, which helps make sure support is proportionate and cost-effective, the EC said. Austria’s framework also envisages mixed-technology tenders including wind and hydro.

The scheme, to be in effect till end-2030, will grant support for up to 20 years from the start of power generation. It is estimated that about EUR 4.4 billion (USD 5bn) will be paid under the measure until the end of 2032.

Subject to bilateral or multilateral agreements, Austria also intends to open the support scheme to energy producers outside Austria.

“The measure will contribute to the reduction of CO2 and other greenhouse gas emissions, in line with the EU Green Deal objectives and the environmental targets set in Austria's Recovery and Resilience Plan, without unduly distorting competition in the Single Market,” said executive vice-president in charge of competition policy Margrethe Vestager.

(EUR 1 = USD 1.130)