Demand Catalogue for Energy Transition

An investment gap of 24.2 billion euros by 2030 endangers the modernization and expansion of distribution networks, PwC Austria criticized on Monday. In addition, there is a lack of legal frameworks and planning security to encourage the industry to switch to green technologies and promote necessary investments. The state and consumers are burdened by rising network charges and prices. A cost-efficient infrastructure expansion is crucial for a socially acceptable energy transition.

PwC Austria: 5-Point Demand Catalog for Rapid and Sustainable Energy Transition

Austria is under pressure to achieve its climate goals by 2040. The technological prerequisites are in place, as is broad public support. Although more than two-thirds of people support renewable energies, many projects are delayed by local resistance and lack of legal frameworks. This is highlighted by the "Energy Transition Market Check 2025" from PwC Austria. "It's no longer about whether we implement the energy transition, but how quickly and efficiently we approach it. The technology is there, the majority of the population is ready. And yet we are losing valuable time because we are caught up in lengthy fundamental discussions, as is happening again at the 30th World Climate Summit in Brazil," explains Michael Sponring, Head of the Energy and Utilities sector at PwC Austria.

Network Expansion as a Bottleneck of the Energy Transition

According to Austria's Energy, approximately 24.2 billion euros will be needed by 2030 to renew the distribution networks and ensure the capacities for the expansion of renewable energies, which will have noticeable costs for end consumers. A coordinated network expansion is essential for a successful process. Often, due to the "first come, first served" principle, less significant projects receive a connection to the grid faster than strategically more important ones. To achieve realistic goals and make the transition efficient, intelligent management and comprehensive planning are necessary, taking into account spatial planning aspects and sector coupling.

PwC Austria: Politics and Business Must Act Together

By the year 2040, according to the Institute for Advanced Studies, an additional investment need between 102.5 and 178.7 billion euros is expected. For this reason, politics must develop new financing mechanisms, such as infrastructure funds or tax incentives, to implement large projects and control financing costs for the energy sector and industry. Especially the industry, which is responsible for about 45% of Austria's CO2 emissions, needs legal incentives to switch to environmentally friendly technologies. "Under the current conditions, both financially and politically, a successful energy transition is hardly feasible. It requires a national alliance of politics and business as well as a joint, coordinated plan for our energy future," explained Sponring.

Five Key Levers for Successful Implementation of the Energy Transition

To prevent the urgently needed investment volume in the billions from becoming a financial burden for the state and end consumers, clear frameworks are required that enable cost-efficient expansion. These include targeted incentives for private investments as well as models that actively involve customers in the transition. In expert discussions with PwC Austria and leading figures from 20 companies, including representatives from the energy industry, network operations, finance, technology, and digitalization, five concrete measures were identified to ensure a rapid and sustainable transformation of the energy landscape. The common appeal is: Act now - for efficiency, fairness, and participation.

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