Renewable energy and smart grids market in Austria

Austria is an international pioneer in renewable energy sources. Around one-third of the primary energy consumption in Austria is from domestic production, with most coming from renewable energy sources (RES) (87.7% in 2023).Footnote 1

Over 85% of Austria's electricity is generated from renewable sources. This makes Austria one of the EU's most CO2-efficient countries in the electricity sector, despite not using nuclear energy.Footnote 2

However, a rapid expansion of renewable energy in Austria is essential to achieve the country's target of climate neutrality by 2040, which is more ambitious than the EU target.

Austria is a leader in the development of decentralized energy systems and highly interconnected smart infrastructures. Austria has more than 200,000 km of overhead and underground power lines.Footnote 3 Several regions in Austria were set up to test and launch smart meters through research and field trials .Footnote 4 At the end of 2024, around 95% of all households had smart metersFootnote 5, meaning 95% of the 6.4 million metering points were upgraded.Footnote 6

The key opportunities depend on various geopolitical factors.

Industry highlights

87.7%
of domestic electricity production comes from renewable sources

130,000
new jobs are necessary for the energy transition in Austria by 2030

27 terawatt-hours (TWh)
of additional renewable energy production is needed to reach climate neutrality in electricity generation by 2030

3rd
highest research and development (R&D  )  quota in the European Union  

Key opportunities for Canadian cleantech companies in Austria

  • Austrian companies are leaders in the R&D of next-generation clean technologies and well established in the European market.
  • With the launch of the "Hydrogen Industry Valley Austria", the country is increasingly focusing on hydrogen technologies. There are 17 proposed projects and investments of €578 million until 2030.Footnote 7
  • Carbon2ProductAustria (C2PAT) is Austria's largest carbon capture and utilization (CCU) project. By 2030, the project plans to capture 750,000 tons of CO2 per year at Holcim's Mannersdorf plant and convert it into:

However, the project is still in the process of securing additional environmental and construction permits. It is also still seeking additional funding to cover the full scope of the project beyond Phase 1 of 3.Footnote 9

  • Heat pumps play an important role in Austria's climate and energy strategy. There is funding support of up to 75% for the replacement of existing systems.Footnote 10
  • Austria has seen a significant increase in electric vehicle (EV) registrations, with all-electric cars accounting for 20% of new sales by 2023Footnote 11. The country has also expanded its public charging infrastructure to approximately 15,000 stations nationwide.Footnote 12

Notable challenges for Canadian renewable energy companies in Austria

  • The small and medium-sized enterprise (SME)e structure of energy providers in Austria makes joint tenders difficult for large-scale projects. This is because local operations are preferred by utility companies, who are often:
    • risk-averse
    • region-specific
    • majority-provincial government-owned
  • Many existing networks don’t work well together. This makes it hard for Canadian renewable energy companies to integrate their technologies smoothly.
  • Legal barriers pose additional challenges. For example, restrictions on network operators owning storage facilities and engaging in electricity trading.

Austrian business landscape

  • The business landscape is driven by an SME structure, providing a high degree of flexibility.
  • The country has committed itself to high environmental standards, supported by both the government and an environmentally conscious population.
  • Austria has a strong position in water and wastewater technology. STRABAG Water Technologies and SFC Umwelttechnik provides innovative solutions in this field.Footnote 13Footnote 14
  • Austria provides a business environment with strong research and development funding, while noting that there is a:
    • 14% research tax credit for large and small companies
    • 25% corporate tax rate

Summary

Austria is a leader in renewable energy. By 2024, 87.7% of domestic electricity production was coming from renewables. Austria excels in distributed systems and smart infrastructure. The country is aiming for climate neutrality by 2040, which will require a rapid expansion of renewables. This transformation presents significant opportunities for Canadian companies, given Austria's challenges with intermittent renewables and system digitalization.

For more information on renewable energy in the Austrian market please contact
Susanne Knobloch:

Email: Susanne.Knobloch@international.gc.ca
Tel. +43 1 531 38 3354

Additional Information

Date published: