The eagerly awaited Renewable Expansion Law relies on market premiums aimed at compensating for the difference between the production costs of electricity from renewable sources and the average market price for electricity. This article considers aspects of the law concerning biomass and biogas, including the tender process and qualifying criteria, the calculation of the market premium and how the law will affect existing biomass and biogas plants.
The Renewable Expansion Act (EAG) aims to ensure that 100% of electricity generated comes from renewable energy sources by 2030. To this end, the annual electricity generation from renewable sources is to be increased by 27TWh by 2030. According to the draft EAG, wind will account for 10TWh of this electricity generation. This article discusses the market premiums that will be available to wind turbines, as well as the method of calculation, the eligibility criteria and the application process.
As long as experienced market participants, ideally with the appropriate financial strength, are prohibited from participating in an energy community, the question remains as to which entities will set up and operate energy communities. However, the new government bill on the Renewable Expansion Act contains significant changes compared with the assessment draft issued in September 2020, including an exciting innovation in this respect.
Energy communities are associations of several people, companies or public bodies that jointly generate energy from renewable sources. The self-generated energy can later be used, stored or sold. According to the draft Renewable Expansion Act, founders can choose from all legal corporate forms. However, not all company forms are practical. Whether energy communities have come to stay will largely depend on their economic attractiveness and the right choice of company structure.
In January 2021 the Supreme Court issued a decision on long-term contracts for the import of natural gas into Austria. The contracts had been concluded in 2006 for the supply of unstructured natural gas. All of the contracts expired in 2027 and contained an obligation for customers to purchase 83% of the contract volume, even if this amount was not actually taken. One of the buyers had been granted an early termination right, which raised questions around the duty of equal treatment.