Further Criticism of the E-Economy Law

The additional grid fees for suppliers and the peak capping for wind and PV systems provided for in the Electricity Industry Act (ElWG) are "very big mistakes," said the managing director of the Association of Renewable Energy Austria (EEÖ), Martina Prechtl-Grundnig, on Tuesday.

Improvements demanded for the Electricity Industry Act

The EEÖ warned of rising electricity prices, stalled renewable expansion, and competitive disadvantages for domestic producers. The additional grid costs for producers would increase the production costs for electricity and ultimately be passed on to end consumers through the electricity price. "This saving that is being announced here is simply not feasible," said Prechtl-Grundnig.

Rising production costs would also mean disadvantages in international competition for Austrian producers. In addition, there are no such feed-in grid fees in any neighboring country. "It will become more attractive to import electricity rather than promote domestic electricity," said the EEÖ managing director.

The consultation period for the Electricity Industry Act (ElWG) ends next Friday, August 15. Until then, statements can still be submitted. A two-thirds majority in parliament is necessary for the law to be passed, so the governing parties ÖVP, SPÖ, and NEOS also need the votes of the FPÖ or the Greens.

Renewable electricity target for 2030 not achievable with the Electricity Industry Act

The amount of grid costs is to be determined by the regulatory authority E-Control only after the law is passed. Currently, there is talk of up to 3 cents per kilowatt-hour (kWh), or 30 euros per megawatt-hour (MWh) - "the burden that is looming is very large," said IG Wind Power managing director Florian Maringer. For wind power, the planned peak capping is also a major problem. Both measures are "a substantial intervention in planning security" and would make financing new projects, which are 80 percent financed with external capital, "almost impossible."

"We are thereby destroying the affordable production that we need in the long term," said Maringer. Wind power investments amounting to 7 billion euros by 2030 are at risk. The goal of supplying Austria with 100 percent renewable electricity by 2030 on a national balance sheet is also not achievable with the ElWG in its current form, according to Maringer.

The Market for Photovoltaics is Stagnant

Since the inauguration of the government consisting of ÖVP, SPÖ, and NEOS, measures have been implemented that have caused "massive uncertainty" in the PV industry, said PV-Austria Managing Director Vera Immitzer, referring, among other things, to the removal of the VAT exemption for small PV systems. The grid fees for suppliers are now "the next ill-considered step."

Immitzer also criticized the lack of planning security. "We are already seeing a decline in demand for PV systems, in fact, the market is stagnant. New projects are no longer being commissioned under these announcements." The amortization for small PV systems would be extended by about two years due to the grid fees, depending on their amount. The additional grid fees were also criticized by the Managing Director of Small Hydropower, Paul Ablinger.

Overall, the draft law contains "a lot of measures that lead to grid relief," said Immitzer. "We don't need to take the third step now, namely, setting grid fees for suppliers, when we haven't even taken the first step." The PV industry is not as strongly affected by the peak capping as the wind industry, but they wish for a feed-in limit of 70 percent instead of the planned 60 percent of capacity.

Trust of Investors "Massively Damaged"

In recent years, there have been "repeatedly piecemeal legislative decisions that ultimately harm renewables," said the Chairman of IG Holzkraft, Hans-Christian Kirchmeier. As a result, the trust of investors and operators has been "massively damaged." "We reject these additional burdens, we need predictability," said Kirchmeier.

(APA/Red)

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