Austrian Power Grid Evaluates New Electricity Industry Legislation

The Austrian Power Grid (APG) has provided its assessment of the government's newly proposed Electricity Industry Act (ElWG), highlighting both its strengths and areas where further refinement is needed. According to APG, the draft legislation offers a modern regulatory framework designed to facilitate the secure integration of renewable energy sources, advance digitalization throughout the electricity system, and support Austria's transition to a more sustainable, resilient energy infrastructure.

The legislation establishes updated operational guidelines intended to underpin the continuing evolution of the energy sector. Key provisions focus on strengthening grid stability, introducing flexible network tariffs, and prioritizing measures that contribute to overall system reliability and efficiency. These elements are regarded as critical for enabling a seamless and secure transition towards renewable energy sources, reducing reliance on imports, and supporting the affordability and reliability of electricity supply across Austria.

APG notes that the framework is expected to help all stakeholders within the electricity sector work collaboratively, ensuring a cohesive approach to meeting future energy demands. The law is also designed to address the growing requirements resulting from the increasing electrification of society, industry, and commerce. The integration of renewables and digitalization of grid infrastructure are seen as fundamental to maintaining Austria's high level of supply security, which has consistently ranked among the best globally.

Despite these positive aspects, APG has identified specific areas where the legislation may require amendments before implementation. The organization points to significant changes in the regulatory system compared to earlier drafts, emphasizing the need for regulatory conditions that enable effective and market-based financing of the energy transition. APG stresses that, unlike other infrastructure sectors, the necessary investments for grid expansion and modernization must be sourced from financial markets, necessitating competitive returns on both equity and debt capital. Ensuring this framework is in place is seen as essential for the timely execution of the national grid development plan.

Additionally, APG highlights the importance of a clear legal basis for the network reserve, a mechanism crucial for identifying and mitigating bottlenecks in the transmission grid. Compliance with both European and national legal requirements is considered vital to maintain grid stability and secure Austria's electricity supply in the long term. APG calls for a consensus among all parliamentary parties to pass the legislation within the year, underlining its significance for national energy security.

As Austria's independent transmission system operator, APG is responsible for managing the country's high-voltage electricity network, which spans approximately 3,500 kilometers and is overseen by a team of about 1,000 specialists. The company operates and maintains 67 substations nationwide, most of which are remotely controlled from its Vienna headquarters. In 2024, APG maintained a supply security level of 99.99 percent, reflecting its commitment to operational excellence.

APG's ongoing investment plans are central to Austria's energy strategy. The company intends to allocate around 630 million euros in 2025 to grid expansion and modernization, with total investments planned to reach approximately 9 billion euros by 2034. These efforts are expected to drive economic growth, enhance the integration of renewables, and position Austria as a leader in sustainable energy infrastructure.

Through the proposed legal reforms and sustained investment, APG aims to ensure that Austria remains at the forefront of energy system modernization, balancing supply security, affordability, and environmental sustainability.