Austria's solar power operators under pressure: new network fees planned!

Austria's solar power operators under pressure: new network fees planned!

The Austrian government presented the draft of the new Electricity Industry Act (ElWG) on Friday, and expectations are high. Economics Minister Wolfgang Hattmannsdorfer (ÖVP) presented the proposed law, which is coming to the table a year and a half late. The aim of the comprehensive reform is to readjust the Austrian electricity market and at the same time advance the energy transition. But not everyone is happy about the proposed measures.

A central point of the draft is the introduction of network fees for solar power fed into the grid. This new regulation is intended to make the operators of photovoltaic systems, which are around 500,000 in Austria, pay. Although the exact amount of network fees has yet to be determined by the regulatory authority, this regulation is criticized by the Federal Association of PV Austria as a massive affront to the energy transition. According to Sonnenseite, this could also lead to higher electricity prices for all consumers.

Regulations for households and the future of security of supply

The law also provides for some other significant changes. Flexible network fees and a nationwide uniform social tariff of 6 cents net per kilowatt hour are to be introduced for households with an annual electricity consumption of up to 2,900 kilowatt hours. Around a quarter of a million households could benefit from this, although the costs would have to be borne by the energy suppliers. It would also be possible for the feed-in of PV electricity to be more flexible depending on the grid situation, but there is a “peak cap” that states that in the event of an impending grid overload, only 60 percent of the power may be fed in for a short period of time, reports [Puls24].

The market situation and the competitiveness of the generation plants are also at stake, as Austria already has the second highest feed-in costs in the EU. This could have a lasting negative impact on the energy supply, as additional network fees jeopardize the flexibility of the electricity system. “We needed a good hand in the energy transition, which could now turn out to be a boomerang,” says Vera Immitzer from PV Austria, who is critical of the introduction of network fees.

The political process and the challenges

A two-thirds majority is needed to pass the law in the National Council, which poses a challenge to the governing parties of the ÖVP and the Greens. Support could come from the FPÖ, which is still undecided. In addition, other groups such as the Austrian Renewable Energy Association have also noted massive concerns about the previous regulations. They fear that the existing international disadvantages affecting domestic production could be further exacerbated.
Green Party leader Leonore Gewessler announced that the draft would be carefully examined to ensure that the measures are in the interests of the environment and consumers.

One view is almost undisputed: the draft could catch Europe off on the wrong foot, not only economically but also ecologically. The coming months will show whether the new electricity industry law can bring about the desired change or whether it remains an attempt to preserve tried and tested structures. The discussion has only just begun, and it remains exciting to see how citizens and entrepreneurs will react to these new regulations.