Support and cost
Electricity generated from renewable energy sources, such as wind, biomass or solar power (PV), is more expensive than electricity from fossil fuels (such as natural gas or coal) or from existing large hydropower plants.
This is because the technologies for renewable electricity generation are more expensive than those involved in conventional plants. For green power generated from renewable fuels, the expenses for wood, crops or oil plants count on top. Renewable electricity generation therefore must rely on financial support. The support scheme is financed by consumers, who pay for it through their electricity bills. Austria has rules on which type of green power is subsidised and which not. For instance, large hydropower stations are not eligible for financial support.
Financing the renewables support scheme
On 1 July 2012, the Ökostromgesetz (Green Electricity Act) 2012 introduced a new financing mechanism for Austria's green power support system. It establishes a renewables contribution that is to be listed as a separate item on system charges bills. The previous flat-rate renewables charge per metering point of € 33 is retained and charged in addition to the new renewables contribution.