EU Approval for Electricity Subsidy in Austria

The regulation aims to support electricity reserve capacities that can be deployed by the grid operator at any time during transmission bottlenecks. The goal is to balance generation and demand. The grid reserve, which ends in 2026, will thus be expanded and extended.

Electricity Aid in Austria Granted After Tender

In the event of transmission bottlenecks in certain zones, grid operators can add capacities from zones where demand exceeds supply. According to the regulation, Austrian Power Grid AG (APG) can pay compensation to power plant operators who have announced shutdowns if they keep power plants important for stabilizing the electricity grid available. The supported capacities must be available and located in Austria or one of its neighboring countries. The aid will be granted in the form of direct grants and payments to cover operating costs.

The aid would be granted based on a competitive tender, unless the Austrian regulatory authority determines that such a tender does not ensure sufficient competition. In that case, the amount of aid would be determined based on the respective costs of the individual recipients, according to the Commission in a release. The Commission approved the Austrian regulation under EU state aid rules because its positive effects outweigh any distortions of competition and trade in the EU. The regulation is appropriate, and Austria will evaluate it, invest in grid expansion, and implement reforms to reduce grid bottlenecks in the future, the Brussels authority further stated.

(APA/Red)

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