Austria’s Market Premium Subsidy Scheme In Force

Austria To Hold Renewable Energy Auction On December 13, 2022 With 700 MW Solar PV: PV Austria

Austria’s Market Premium Subsidy Scheme In Force

After the European Commission approved Austria’s market premium scheme in December 2021, the country has now brought it into force. (Illustrative Photo; Photo Credit: Jarama/Shutterstock.com)

  • PV Austria says the Austrian government has brought into effect its market premium scheme for renewable energy projects
  • It will not exceed €0.933 per kWh and in case of ground mounted projects, the premium will drop 25%
  • The government will award these premiums to winners of a competitive selection process, the 1st of which is to be held on December 13, 2022 with 700 MW PV capacity

The Austrian government has brought in force its market premium subsidy scheme under the country’s Renewable Expansion Act (EAG) to be awarded to winning projects after a competitive auction process, 1st of which is due to be launched on December 13, 2022, said local association Photovoltaic Austria (PV Austria).

The December 2022 funding call will have an output of 700 MW reserved for solar PV technology. Projects with an output of 10 kW or higher will be eligible to participate.

As per the association, the market premium scheme is part of the investment funding under EEG that’s already operational since April 2022, taking it to the next level.

Winning projects will receive a premium to cover up the difference between the average production cost for renewable energy and the electricity market price. It will not exceed €0.933 per kWh. In case of ground mounted systems, the subsidy amount will drop down 25%.

PV Austria says this measure serves as a safeguard for the scenario when electricity prices fall again, however at present with electricity prices already at an elevated level the government may not have to shell out anything. Yet, its success will depend on federal states if they provide any specific areas for the proliferation of large scale systems and availability of grid space.

Except for Burgenland and a ‘tentative attempt’ in Lower Austria, there are no federal state areas designated for larger PV systems which is ‘intolerable’ in times of climate and energy crisis (see Burgenland Aims For 3.2 GW Solar).

In December 2021, Austria secured a go ahead from the European Commission (EC) to launch the premium aid scheme for renewable energy generation as it targets 100% renewable energy by 2030 (see Austria Presents Draft Renewable Expansion Law). The scheme will remain in effect till 2030 with winners entering an agreement for 20 years. It will apply to solar PV, wind energy and biomass projects.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.

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