COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Austria Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Austria, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 384 final  COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Austria Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union {COM(2017) 688 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
                              Energy Union –Austria 

  Austria 
   Energy Union factsheet1 

1.  Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2  accounted  for  7.3%  of  the  total  value  added  of  Austria  in  2015.  Their  share  in  total 
employment3 was 5.5% of total employment in 2015, of which 4.9% in the transport sector and 0.6% 
in the energy sector.  

(source: Eurostat) 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included in this analysis. 

1  The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working Document "Monitoring progress towards the Energy Union objectives  – key indicators" (SWD(2017) 
32 final) https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-indicators_en.pdf  
2   Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply 

and H-Transportation and storage 

3   National accounts, Eurostat 

1 

02468101214162005201520052015ATEU28[%]Value added of the sector as % of total economy gross value added EnergyTransport7.827.266.646.88Energy&Transport as % of total GVA:0123456789102005201520052015ATEU28[%]Employment in the sector as % of total employmentEnergyTransport6.165.545.575.46Energy&Transport as % of total employment: 
 
                 
 
 
 
                                                            
 
                              Energy Union –Austria 

In the case of renewable energy sector, both the direct and the indirect effects on employment are 
being  estimated.  According  to  EurObserv'ER,  in  2015,  the  share  of  renewable  energy  related 
employment in total employment in Austria was at about 0.95% and thereby above the EU average 
of 0.54%. The turnover of the renewable energy industry in the same year was estimated at around 
EUR 6.9 billion, the biggest part being attributed to the biomass (EUR 2.0 billion) followed by small 
hydro (EUR 1.6 billion), wind (EUR 1.1 billion) and photovoltaic (EUR 610 million) industries. 

(source: EC based on Eurobserv'Er and Eurostat) 

An  indication  of  the  level  of  efforts  and  challenges  encountered  by  Austria  in  the  energy  sector  is 
provided by the Gross fixed capital formation (GFCF)4. Investments in the electricity and gas sectors, 
taken as reference sectors, have been fluctuating over the period 2006-2015 but never went above 
1% of GDP. In 2015, investment in the electricity and gas sectors was at around 0.7% of the country's 
GDP, which is roughly the same level as in 2006.  

 (source: Eurostat) 

4 Gross fixed capital formation consists of resident producers´ acquisitions, less disposals, of fixed tangible or 
intangible assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other buildings. It 
also includes foreign direct investment (FDI). Steam and air conditioning supply are also included in the figures 
mentioned above as Eurostat reports electricity, gas, steam and air conditioning supply together. 

2 

0.0%0.1%0.2%0.3%0.4%0.5%0.6%0.7%0.8%0.9%1.0%2006200720082009201020112012201320142015[% GDP]GFCF in energy as share of GDP, Austria**GFCF=Grossfix capital formation 
 
 
 
                                                            
                              Energy Union –Austria 

In terms of trade, Austria is a net importer of fossil fuels and electricity. The trade deficit in energy 
products has fallen from about 3.5% of GDP in 2006 to 2.3% in 2015. The electricity trade deficit fell 
from 0.2% to less than 0.1% of GDP. The trade deficit for oil has also reduced from 2.4% of GDP in 
2006 to 1.4% in 2015 reflecting lower prices. 

 (source: Eurostat) 

2.  Energy security, solidarity and trust 

2.1. Energy Mix 

In comparison to the average energy mix of primary products in the EU, Austria's energy mix has a 
much higher share of renewable energy (29.8% vs 13%) and no nuclear energy (EU average: 13.6%) in 
gross  inland  consumption.  Solid  fuels  have  a  significantly  lower  importance  in  Austria  (9.8%  vs 
16.2%). Consequently, the Austrian energy mix has a lower share of fossil fuels than the EU. 

 (source: Eurostat) 

2.2. Import dependency and security of supply 

60.8%  of  Austria's  energy  consumption  comes  from  imports,  slightly  more  than  the  EU  average 
(measured  in  gross  inland  consumption).  This  is  due  to  the  high  share  of  imports  of  fossil  fuels,  in 
particular oil.  

3 

-10.0-8.0-6.0-4.0-2.00.02.04.02006201520062015ATEU28[% of GDP]Trade balance of energy product and current  account balanceGasOilCoalElectricity-3.48-2.31-2.24-1.69Trade balance of all energy products [%GDP]: 
 
 
   
  
                              Energy Union –Austria 

The overall import dependency of Austria decreased by about 11 p.p. between 2005 and 2015. At EU 
level, import dependency increased by  1.9 p.p. over the same period. Austrian import dependency 
for natural gas and hard coal showed a significant decrease over time. At the same time, the level of 
the  aggregate  supplier  concentration  index  (for  crude  oil,  natural  gas  and  hard  coal,  taking  into 
account  imports  from  outside  the  European  Economic  Area)  grew  by  a  relatively  large  extent, 
pointing to potentially increased vulnerability. The overall decreasing net import dependency can be 
attributed  to  the  increase  in  indigenous  renewable  energy  production  and  a  decrease  in  energy 
consumption.  Natural  gas  imports  come  mainly  from  Russia  (2013:  62%  -  no  2015  breakdown 
available from Austria). Austria acts as a regional gas hub and its energy security benefits from large 
underground gas storage facilities. 

 (source: Eurostat) 

The security of gas supply regulation requires that, if the single largest gas infrastructure fails in one 
Member State, the capacity of the remaining infrastructure is able to satisfy total gas demand during 
a day of exceptionally high gas demand. This condition is met if the value of the N-1 indicator is equal 
to or above 100 %. Austria significantly exceeds the required 100% threshold for its N-1 value. The 
indicator has even significantly improved over the last years, owing to new pipeline connections with 
neighbouring countries in Central Europe. 

(source: gas coordination group) 

4 

232.6%N-1 rule for gas2016threshold 100%AT 
 
 
 
 
 
                              Energy Union –Austria 

3.  Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1.  Electricity 

(source: EC services based on ENTSOE)         (source: EC services based on Eurostat)       (source: EC services based on Platts 

and European power exchanges) 

Austria is part of the Central Western European wholesale electricity market and is closely connected 
with  its  neighbouring  countries.  Austria  and  Germany  form  a  common  bidding  zone.  In  2017,  the 
electricity interconnection level5 of Austria was 15.3%, well above the 2020 target of 10%. 

The central location of the country poses challenges as regards the efficient accommodation of the 
North-South electricity flows. The Austrian electricity grid needs to accommodate high and increasing 
production of electricity from solar power and wind. Progress on the reinforcement of domestic and 
cross-border  electricity  transmission  capacity,  supported  by  the  'project  of  common  interest'  (PCI) 
status of nine electricity projects, has been modest.  

Concentration  on  the  power  generation  market  is  much  below  EU  average.  Due  to  the  close 
interconnections  with  neighbouring  countries  and  the  common  bidding  zone  with  Germany  the 
power  market  showed  comparably  low  and  decreasing  wholesale  electricity  prices.  Wholesale 
electricity  prices  are  among  the  lowest  in  the  EU,  and  between  2013  and  2016  recorded  a  higher 
decrease  than  the  EU  average  (22.7%  in  AT  vs  14.8%  in  EU).  In  Austria  the  share  of  (bigger) 
generating companies in national electricity generation is around 50%.  

5 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] and 
net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E Winter 
Outlook 2016/2017) 

5 

 
 
 
 
                                                            
                              Energy Union –Austria 

3.1.2.  Gas 

Wholesale  gas  prices  remain  at  a  similar  level  as  average  EU  gas  prices.  Gas  market  competition, 
albeit still less developed compared to the leading EU gas markets, showed a strong improvement. 
Austria is a significant transit country for gas as it is well-located along gas routes from Russia to Italy 
and  Southern  Germany.  Its  transit  capacities  help  to  secure  the  energy  supply  of  its  neighbours. 
Austria´s gas infrastructure is suffering from remaining bottlenecks at certain entry-exit points. Four 
PCIs  in  gas  are  addressing  these  bottlenecks  as  well  as  improved  market  integration  and  enabling 
reverse flows. 

(source: ACER for the left graph and EC services based on Platts, gas hubs, Eurostat for the right graph) 

3.2. Retail electricity and gas markets 

3.2.1.  Electricity 

In  2015,  household  electricity  prices  in  Austria  were  slightly  below  the  EU  average.  Between  2013 
and 2015, average band retail electricity prices for households decreased, but to a lesser extent than 
the  wholesale  prices.  This  can  be  partially  explained  by  an  increase  in  taxes  and  levies,  which 
represent more than a third of average household prices. 

Deployment  of  smart  meters  in  Austria  is  still  rather  low  (2016:  8.5%)  but  a  roll  out  to  95%  of  all 
customers is planned by 2019. Annual switching rates in Austria include only the voluntary switching 
from one electricity supplier to another, not switches because of moving or changes of products (i.e. 
"internal switching"). 

6 

 
 
 
 
 
                              Energy Union –Austria 

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

3.2.2.  Gas 

In line with the EU trend, Austrian household gas prices fell by 10.6% between 2013 and 2016. Taxes 
and levies in household gas prices have been slightly increasing. Also regarding gas, annual switching 
rates  in  Austria  include  only  the  voluntary  switching  from  one  electricity  supplier  to  another,  not 
switches because of moving or changes of products (i.e. "internal switching"). 

Austria has not yet taken an official decision to proceed with large-scale gas smart metering. Austria 
has published the minimum standards for the meters but not yet the roll-out plan.6 

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

3.2.3.  Market performance indicators 

According  to  the  periodic  survey  of  the  European  Commission,  the  satisfaction  of  the  Austrian 
consumers with the services received on energy retail markets has grown significantly more than the 

6   Commission  Staff  Working  Document  of  17.6.2014,  "Cost-benefit  analyses  &  state  of  play  of  smart 

metering deployment in the EU-27", SWD(2014) 189 final. 

7 

 
 
 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Austria 

EU average. For both electricity and gas, Austrian consumer satisfaction appears among the highest 
across the EU.  

(source: DG JUST survey) 

8 

 
 
  
 
 
                              Energy Union –Austria 

3.3. Energy affordability  

Energy  affordability  is  understood  as  consumers'  ability  to  pay  for  their  energy  needs  without  this 
negatively impacting their comfort and livelihood. Affordability can be measured by looking at how 
much people in the lowest income bracket have to pay for their energy needs (or by calculating the 
share of energy expenditure in total household expenditure for the quintile of population with the 
lowest income). In Austria, the share of energy in total household expenditures of the lowest quintile 
of  the  population  with  the  lowest  income  is  below  the  EU  average,  but  has  been  growing  slightly 
more than the EU average since 2005. Furthermore, only a limited part (8%) of citizens below the at-
risk-of poverty threshold considers that they are unable to keep their home adequately warm. This 
could partly be explained by high energy efficiency standards of residential buildings and low retail 
electricity prices. 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

4.  Energy efficiency and moderation of demand 

Compared  to  2005,  Austria  decreased  its  primary  energy  consumption  by  3.3%  to  31.33  Mtoe  in 
2015.  Over  the  same  period,  final  energy  consumption  also  decreased  by  1.7%  to  27.37  Mtoe  in 
2015. Austria has to increase its effort to decrease its final energy consumption further in order to 
achieve  its  indicative  final  energy  consumption  2020  target  (25.1  Mtoe)  and  to  keep  its  current 
primary  energy  consumption  below  its  indicative  primary  energy  consumption  2020  target  (31.5 
Mtoe).  Effective  and  continuous  implementation  of  the  Energy  Efficiency  Law  (adopted  on  4  July 
2014 in view of transposing the Energy Efficiency Directive) is key in order to use the full potential of 
energy efficiency in a cost-effective manner in view of reaching the 2020 targets. 

9 

 
 
 
                              Energy Union –Austria 

(source: Eurostat) 

Primary energy intensity in Austria is well below the EU average and has decreased over the 2005-
2015  period,  although  at  a  slightly  slower  pace  than  the  EU  average.  A  detailed  assessment  can 
illustrate these trends. The energy intensity of Austria's industry is rather stable, but above the EU 
average, which is linked to a comparatively high share of energy intensive industry in Austria. On the 
other  hand,  energy  intensity  in  both  the  services  sector  and  households  is  below  the  EU  average. 
Austria is among the Member States which, between 2005 and 2014, improved the energy intensity 
in the services sector most. 

In 2015, in Austria, industry was the biggest energy consuming sector representing a 33.3% share in 
the  total  final  energy  consumption,  which  is  well  above  the  EU  average  (i.e.  25.3%).  The  share  of 
energy consumption of Austria's transport sector was in 2015 at around 33%, which is at EU average. 
The shares of energy consumption of the residential and the services sectors in Austria are below the 
EU average, with a share in total final energy consumption of 21.8% and 10% respectively. 

(source: Eurostat) 

The  final  energy  intensity  of  Austria's  industry  is  well-above  the  EU  average,  notably  due  to  the 
strong  presence  of  industry,  notably  steel.  Also  the  residential  sector  demonstrates  energy 
consumption per square meter above the EU average even after a correction for climate conditions. 
Additional efforts could therefore be envisaged to improve energy intensity in these demand sectors. 
At the same time, energy intensity in the services sector has significantly improved in Austria since 
2005. Whereas in 2005 it was clearly above the EU average, in 2015 it was clearly below.  

10 

 
 
  
 
 
 
                              Energy Union –Austria 

(source: Eurostat)  

      (source: Eurostat) 

  (source: Odyssee database) 

Between 2005 and 2015 in Austria, the final energy consumption in transport has not changed (i.e. 
average  annual  change  was  0%  over  that  period)  and  amounted  in  2015  to  9  Mtoe,  while  GDP 
increased annually  by  1.2 %.  Although  the initial  decrease  of  final  energy consumption  (until 2009) 
was driven by the decrease of freight transport activity affected by the economic context (partially 
offset  by  the  increase  of  passengers  transport  activity),  in  the  subsequent  years  the  increase  of 
transport activity was not reflected in the energy consumption which continues to be slightly below 
2005 level. 

(source: Eurostat)  

        (source: Eurostat and DG MOVE pocketbook) 

The share of collective land transport in all passengers' transport increased between 2005 and 2015 
by 1.6% (from 20.6% to 22.2%), indicating a higher use of collective transport means (including trains, 
motor coaches, buses and trolley buses) in Austria. This share is above the EU average (of 17.3% in 
2015).  

11 

 
 
 
 
 
 
 
 
 
 
 
                              Energy Union –Austria 

(source: Eurostat)  

The  programme  of  the  previous  Government  coalition  2013-2017  aimed  at  strengthening  the 
national transport scheme and the further development of strategies across all modes of transport. 
The priority areas for action included extending and modernising transport infrastructure, increasing 
the  attractiveness  of  public  transport,  implementing  plans  for  innovative  mobility,  strengthening 
water ways and extending flood protection.  

Austria  is  situated  at  the  crossroads  between  Eastern  and  Western  Europe  and  between  Southern 
and Northern Europe. It is a transit country with a sizeable share of transit traffic, and around two 
thirds of all transit activities are by road. Austria wants to reduce transit traffic by road as much as 
possible  and  a  number  of  restrictions  are  in  place.  One  of  the  objectives  of  the  Austrian  transport 
policy is to increase the modal share of rail in freight transport from around one third today to 40% 
by 2020; the share of road is to reduce correspondingly.  

5.  Decarbonisation of economy 

5.1. GHG emissions 

According to its most recent projections, Austria will fail to meet its target in the sectors not covered 
by the ETS in 2020 if it does not implement additional policies.  

(source: EC and EEA)   

12 

 
 
 
 
    
 
                              Energy Union –Austria 

(source: EC and EEA)   

Preliminary accounts under the Kyoto Protocol for Austria show overall removals of 4.2 Mt CO2eq. as 
an annual average in the period 2013-2015. For comparison, the annual average of the EU-28 
accounted for removals of 119.0 Mt CO2eq. It should be noted that in this preliminary simulated 
accounting exercise, removals from Forest Management were capped to 2.7 Mt. CO2eq. per year, 
due to slightly exceeding the limit of the difference between the reported sink and the accounting 
forest management reference level.  

Removals by Afforestation are notably higher than emissions by Deforestation; however, removals by 
Forest Management contribute the highest share. Overall, removals by Afforestation and emissions 
by Deforestation remain nearly constant over the course of the three-year period.  

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 
(source: EC and EEA) 

CO2 emissions in transport and alternative fuelled vehicles 
The average CO2 emissions of new cars in Austria were in 2016 above the EU average, but decreased 
between 2005 and 2016 by 25.7% (i.e. slightly less than the EU average of 27.3%). 

13 

 
 
 
 
 
 
                              Energy Union –Austria 

 (source: European Environment Agency) 

The share of alternative fuel cars in total sales on the Austrian market is still marginal (i.e. 1.13% in 
2015)  but  more  than  twice  as  much  as  in  2013.  In  2015,  0.9%  of  new  cars  in  Austria  have  been 
hybrid-electric and electric.  

The number of electric charging points in Austria has increased significantly over the period from 
2013 to 2016 when the number of charging points reached 2476.  

(European Environment Agency)  

       (European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objective and measures for the development of the market of alternative fuels in 
the  transport  sector  and  the  deployment  of  the  relevant  infrastructure.  Austria  has  submitted  its 
National Policy Framework as requested under article 3 of the Directive 2014/94/EU.  

A detailed assessment of the Austrian National Policy Framework in terms of its compliance with the 
requirements  of  Directive  2014/94/EU  on  alternative  fuels  infrastructure,  its  contribution  to 
achievement  of  long-term  energy and  climate objectives  of  the  Union  and  coherence of  its  targets 
and objectives in terms of cross-border continuity has been published as part of the Communication 
on  Alternative  Fuels  Action  Plans  (COM(2017)  652)  and   the  related  staff  working  document 
SWD(2017) 365.  

14 

 
 
 
 
 
 
 
                              Energy Union –Austria 

5.2. Adaptation to climate change 

The Federal Government of Austria adopted a National Adaptation Strategy (NAS) in October 2012 
(the  Federal  States  in  May  2013),  which  contains  a  Strategic  Framework  and  an  Action  Plan.  A 
qualitative  vulnerability  assessment  allowed  for  presenting  adaptation  options  for  14  areas  for 
action:  agriculture,  forestry,  water  resources  and  water  management,  tourism,  energy,  protection 
from natural hazards, construction and housing, disaster risk management, health, ecosystems and 
biodiversity,  transportation  infrastructure,  spatial  planning,  business/trade/industry,  and  cities.  A 
monitoring and reporting system is in place since 2015 to assess the implementation of adaptation 
measures for these vulnerable sectors. 

5.3. Taxes on energy and transport 

The overall tax burden on energy and transport in Austria amounts to 2.4% of GDP, which is in line 
with  the  EU  average.  The  overall  structure  of  the  energy  and  transport  revenue  in  Austria  has 
remained stable since 2007. As compared to the EU average, the tax burden on transport vehicles is 
higher, while fuel taxation is slightly below the average. Taxation of heat and electricity in 2007 was 
in line with the EU average, while by 2014 it had fallen below the EU average which had increased by 
around 50%. There is no CO2 component in the tax framework for energy products in Austria, while 
there is a malus-bonus system based on CO2 for some categories of vehicles. 

(source: Eurostat) 

Austria applies a Car Registration Tax based on fuel and CO2 emissions. Electric cars benefit from an 
exemption  if  certain  conditions  are  met.  Furthermore,  as  of  January  2016,  electric  vehicles  (zero 
emission  vehicles)  are  exempted  from  a  taxation  rule  according  to  which  non-electric  company 
vehicles  that  are  also  used  privately  are  subject  to  a  monthly  tax  amounting  to  1.5-2%  of  the 
acquisition value.  

Austria has decreased its support to fossil fuel in the last decade and in particular in the most recent 
years,  mostly  by  getting rid  of  some tax  exemption  and  rebate systems.  Several  consumer  support 
schemes to fossil fuel were stopped in 2012 (Energy Tax Exemption for LPG Used in Public Transport, 
Energy Tax Relief for Diesel Used by Trains). 

15 

0123452007201420072014ATEU28[% GDP]Energy & Transport related taxes as % GDPHeat & ElectricityTransport VehiclesTransport Fuel2.402.442.282.37Total transport and electricity taxes [%GDP]: 
 
 
 
 
 
                              Energy Union –Austria 

(source: OECD Inventory of Support Measures for Fossil Fuels 2015)  

5.4. Renewable energy  

Austria  is  well  on  track,  and  close  (2015:  33%)  to  attaining  its  renewable  energy  target  for  2020 
(34%).  

Austria  is  among  the  few  EU  MS  which  already  achieved  the  renewable  energy  share  in  transport 
reaching 11.4% in 2015. The renewable energy share is 32% in heating and cooling sector. With more 
than 70%  renewable  share in electricity  generation  (mainly  hydro  but increasingly  wind and solar), 
Austria is still leading in the EU.  

 (source: Eurostat-SHARES) 

(source: Eurostat-SHARES) 

16 

 
 
 
 
 
 
                              Energy Union –Austria 

In Austria electricity from renewable energy sources is mainly promoted through a feed-in tariff and 
investment  grants.  The  cost  of  renewables  support  schemes  is  financed  through  network  usage 
charges, metering point charges, network losses charges, costs for guarantees of origin and revenue 
from the allocation of green electricity at the day-ahead hourly spot market price. In the heating and 
cooling  sector,  investment  incentives  are  applied  at  the  level  of  individual  federal  states  for  solar 
thermal installations, heat pumps, geothermic and biomass heating plants. 

Renewable  energy  in  transport  is  promoted  with  a  substitution  system  which  obliges  companies 
bringing fossil fuels onto the Austrian market to substitute a certain percentage of their annual fuel 
sales. Furthermore, biofuels are supported through a fiscal regulation mechanism.  

Due  to  a  consistent  deployment  of  renewables  since  2005,  it  is  estimated  that  Austria  avoided  in 
2014 about 13.4% of the fossil fuel in gross inland consumption and about 11.8% of GHG emissions at 
national level. 7   

 (source: EEA) 

5.5. Contribution of the Energy Union to better air quality 

The emissions of several  air pollutants  have decreased significantly in Austria.  Notwithstanding, air 
quality in Austria continues to give cause for concern. For the year 2013, the European Environment 
Agency  estimated  that  about  6,960  premature  deaths  were  attributable  to  fine  particulate  matter 
(PM2.5) concentrations and 910 to nitrogen dioxide (NO2) concentrations8.  

For  both  pollutants  Austria  reported  exceedances  of  the  binding  EU  air  quality  standards9.  For  the 
year  2015,  Austria  reported  exceedances  of  the  limit  value  for  PM10  in  2  out  of  the  11  air  quality 

7 Avoided GHG emissions mentioned here have a theoretical character as these contributions do not necessarily 
represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon accounting. 
8  European  Environment  Agency,  2016,  Air  Quality  in  Europe  –  2016  Report,  table  10.2.  The  report  also 
includes details as regards the underpinning methodology for calculating premature deaths.    
9 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality 
and cleaner air for Europe, OJ L 152, 11.6.2008, p.1-44 

17 

 
 
 
 
 
                                                            
                              Energy Union –Austria 

zones  in  Austria,  while  exceedances  of  the  limit  value  for  NO2  were  reported  in  7  out  of  the  11 
zones10.  

(source: EEA) 

In  the  Commission's  EU  Environmental  Implementation  Review  Report  for  Austria11,  the  health-
related  external  costs  from  air  pollution  in  Austria  have  been  estimated  to  be  more  than  EUR  5 
billion/year (income adjusted, 2010), which includes the intrinsic value of living a healthy life without 
premature death as well as the direct costs to the economy such as healthcare costs and lost working 
days due to sickness caused by air pollution. 

The  Energy  Union  can  substantially  contribute  to  addressing  these  air  quality  problems  through 
measures reducing emissions of both greenhouse gases and air pollutants such as PM and nitrogen 
oxides  (NOx)  from  major  contributing  sectors  such  as  (road)  transport,  energy  production,  industry 
and residential heating (e.g. stoves and boilers)12. 

10  Compliance  data  as  reported  by  the  Member  States  as  part  of  their  official  annual  air  quality  report  for  the 
calender year 2015 (available on the European Environment Agency's (EEA) Eionet/Central Data Repository), 
http://cdr.eionet.europa.eu/at/eu/aqd 
11 SWD(2017)33 final of 3.2.2017 
12 National emission data as reported by the Member States to the EEA (available on the EEA's Eionet/Central 
Data Repository), http://cdr.eionet.europa.eu/at/eu/nec_revised/ 

18 

024681012NO2 Annual limit valuePM2.5 Annual limit valuePM10 Daily limit value[number of zones]Air quality zones in exceedance of EU air quality standards number of zones exceedingnumber of zones not exceedingAT 
 
 
 
 
 
 
                                                            
 
                              Energy Union –Austria 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.)  

6.  Research, innovation and competitiveness  

6.1. 

Research and innovation policy 

The Climate and Energy Fund of the Federal Government has been the main source of government 
funding for energy research since 2007. The Climate and Energy Fund is maintained by the Federal 
Ministry for Transport, Innovation and Technology (BMVIT) and the Federal Ministry of Agriculture, 
Forestry, Environment and Water Management (BMLFUW). Sub-programmes under the Climate and 
Energy Fund are: New Energies 2020, Smart Energy Demo – fit4SET, and Technology Lighthouses for 
Electromobility in Austria. 

Most  energy  research  funding  is  managed  by  the  Austrian  Research  Promotion  Agency  at  the 
operative  and  administrative  level,  on  behalf  of  the  Climate  and  Energy  Fund,  the  BMVIT  and  the 
Federal Ministry of Science, Research and Economy (BMWFW). Further support activities are driven 
directly by the ministries in the form of subsidies, research contracts, and special actions like prizes 
and awards. 

Within  the  framework  of  the  strategy  process  e2050,  an  Energy  Research  Strategy  for  Austria 
(Energieforschungsstrategie  für  Österreich,  2010)  has  been  developed  by  BMVIT  together  with  the 
Austrian Research Council. Numerous experts from industry and research facilities were involved in 
the elaboration of the Strategy. 

According  to  the  Strategy,  energy  research  in  Austria  has  three  main  pillars:  energy  efficiency, 
renewable  energy  and  security  of  supply.  This  framework  is  designed  to  create  a  mix  of  energy 
sources  and  raw  materials  to  ensure  security  of  supply,  cost-effectiveness,  and  environmental  and 
social  acceptability.  In  particular,  the  Strategy  focuses  on  energy-efficient  buildings,  logistics  and 
mobility, energy-efficient technologies for final energy use, sociological and ecological research, life-
cycle  analysis,  foresight  studies,  energy  storage  and  distribution,  smart  grids,  process  heat  from 
renewable sources, biofuels, and transport. 

Austria is an active contributor to the ongoing work of the Strategic Energy Technology (SET) Plan. It 
participates  in  seven  (out  of  fourteen)  temporary  working  groups  for  the  implementation  of  the 
integrated SET Plan, leading the one on smart cities and communities and co-leading energy systems. 

Regarding  the  Horizon  2020  programme,  Austria  has  so  far  received  4.4%  of  the  EU  contribution 
devoted  to  the  'secure,  clean  and  efficient  energy'  part  of  the  programme.  As  of  September  2017, 

19 

6.9%43.1%6.6%14.1%10.9%2.4%0.0%15.6%0.4%AgricultureCommercial, institutional and householdsEnergy production and distributionEnergy use in industryIndustrial processes and product useNon-road transportOtherRoad transportWastePM2.5 emissions by sectors -2015*AT7.3%12.5%7.9%19.7%1.2%2.3%0.0%49.1%0.0%NOx emisisons by sectors -2015* *NECD data submitted by MS to EEA at 28th May 2015 
 
 
                              Energy Union –Austria 

183 organisations from Austria have been awarded EUR 80 million in Horizon 2020 energy projects. 
This includes a grant of EUR 3.8 million to Voestalpine Stahl for its participation in project H2Future 
(hydrogen  electrolysis  demonstration  plants),  and  eight  grants  totalling  over  EUR  7.8  million  to 
Austrian beneficiaries participating in project SMARTER TOGETHER (smart and inclusive solutions for 
urban districts). 

6.2. 

Investments on Energy Union R&I priorities and patents  

In 2015, public (national) investments in the Energy Union R&I priorities reached EUR 128 million; a 
decrease  of  10%  compared  to  2014.  The  highest  share  of  investments  (42%)  was  attracted  by  the 
Smart System priority of the Energy Union, followed by the Efficient Systems (27%) and Sustainable 
Transport  priorities  (19%).  In  the  period  2007–2015,  the  maximum  annual  public  investment  was 
EUR 143 million, reported in 2014. For the same year, the most recent year for which data for most 
EU  Member  States  are  available,  public  investment  per  GDP  in  Austria  was  higher  than  the  EU 
average. 

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 418 million (3% 
of the private R&I investment in Energy Union R&I priorities in the EU). The focus was on the Smart 
System priority, which received 34% of these investments, followed by Sustainable Transport with a 
share of 26%. 

In 2013, the most recent year for which complete patent13 statistics are available, 90 companies and 
research organisations based in Austria filed 170 patents in low-carbon energy technologies (3% of 
the  EU  total).  The  focus  was  on  Smart  System  (35%),  followed  by  the  Sustainable  Transport  and 
Efficient Systems priorities (24% each). 

In 2013, private R&I investments and patents in Energy Union R&I priorities were higher than the EU 
average when normalised by GDP and by population respectively. In the period 2007–2013, both 
private R&I investments and the number of patents in Energy Union R&I priorities increased, on 
average, by 5% and 14% per year, displaying lower rates of increase than the the EU average (6% and 
15% respectively). 

13   In  the  context  of  this  document,  the  term  'patent'  refers  to  patent  families,  rather  than  applications,  as  a 
measure  of  innovative  activity.  Patent  families  include  all documents  relevant to  a  distinct  invention (e.g. 
applications to multiple authorities), thus preventing multiple counting. A fraction of the family is allocated 
to each applicant and relevant technology. 

20 

 
 
 
                                                            
                              Energy Union –Austria 

Note: The international comparison (right) is shown for 2014 (Austria had reported EUR 143 million). Reporting 
at EU level for 2015 is not as complete, and very few countries have reported for 2016.

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database14 for 
codes  relevant  to  Energy  Union  RIC  priorities.  Patent  data  based  on  the  European  Patent  Office  PATSTAT 
database15. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC16.) 

6.3. 

Competitiveness 

In  2014,  the  real  unit  energy  costs  (RUEC)17  in  Austria  (12.7)  were  below  those  at  the  EU  average 
(15.3), close to twice as high as in the US but below those in Japan and China. The electricity prices 
paid  by  industrial  customers  in  Austria  are  below  the  EU  and  OECD  averages.  In  line  with  this, 
maximum,  median  and  minimum  prices  are  all  slightly  below  the  EU  averages.  While  the  Austrian 
median price compares favourably with the prices in Switzerland or Japan, it remains slightly above 
the OECD average.  

Gas prices for industrial consumers are slightly above the EU and OECD averages. It is noticeable that 
the Austrian minimum price is at the level of the EU average.  

These  results  indicate  that  Austria  has  a  good  rate  of  energy  efficiency  in  its  industry  (the  RUEC  is 
low), despite a significant proportion of energy-intensive industry.  

14 http://www.iea.org/statistics/RDDonlinedataservice/  
15 https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
16 https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies  
17   This indicator measures the amount of money spent on energy sources needed to obtain one unit of value 

added. 

21 

 
 
 
 
 
 
                                                            
                              Energy Union –Austria 

(source: ECFIN) 

                   (source: ESTAT and IEA) 

Regarding the competitiveness in solar energy, as indicated by the revealed comparative advantage 
indicator18  below  1,  Austria  is  not  specialised  in  solar  PV  and  is  performing  slightly  below  the  EU 
average. The relative trade balance19 shows that Austria was a net importer of solar components in 
2015, roughly in line with the EU average. On the other hand, as indicated by a revealed comparative 
advantage  indicator  above  1,  Austria  is  specialised  in  wind  energy  technologies,  especially  in  wind 
turbine power electronics. Nonetheless, Austria's performance fell in 2015 with respect to 2005 and 
reached a level below EU average. In 2005 Austria was a net exporter of wind components, while in 
2015  the  trade  balance  was  roughly  equal  to  zero.  The  trade  surplus  generated  by  the  export  of 
power  electronics  just  compensated  for  the  trade  deficits  accumulated  in  other  parts  of  the  wind 
turbine technology chain. 

 (source: UN comtrade) 

18 The RCA index for product "i" is defined as follows: RCAi =

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and j is 

the country and w is the reference group, the World economy. 2005 refers in the text to the indicator average 
over the 2000-2009 period, while 2015 represents the average over the 2010-2016 period. The same applies for 
the RTB indicator - see below. 
19 The RTB indicator for product "i" is defined as follows: RTBi =

 where Xi is the value of product's "i" 

Xi−Mi
Xi+Mi

exports and Mi imports. 

22 

0123456solarwindsolarwindATEU28[-]Revealed Comparative Advantage -RCA20052015-0.06-0.62-0.070.22absolute change 2005 -2015:-1.0-0.50.00.51.0solarwindsolarwindATEU28[-]Relative Trade Balance -RTB200520150.07-0.15-0.080.06absolute change 2005 -2015: 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Austria 

7.  Regional and local cooperation 

Austria is member of several regional groups:  

Austria is a member of the High Level Group on Central East South Europe Connectivity (CESEC). The 
main aim of the group is to coordinate efforts to facilitate cross-border and trans-European projects 
that  diversify  gas  supplies  to  the  region,  as  well  as  to  implement  harmonised  rules.  Austria,  as  a 
regional gas hub, has an important role there.  

Austria's  electricity  market  is  part  of  the  Central-West  Europe  Flow-Based  Market  Coupling.  The 
recent agreement with German authorities on the introduction of capacity allocation at the border 
between Austria on the one hand and Germany on the other hand can provide clarity for the interim 
period, until coordinated regional capacity calculation within a European legal framework is finalised. 
Bilateral agreements however cannot replace the need for an objective, coordinated regional process 
based  on  technical  power  system  constraints  and  involving  competent  regulatory  authorities  of  all 
affected Member States. 

The Pentalateral Forum was created in 2005 by Energy Ministers from Benelux, Germany and France 
(with  Switzerland  as  a  permanent  observer)  in  order  to  promote  collaboration  on  cross-border 
exchange of electricity. The Forum focusses its work on flow based market coupling and security of 
supply,  notably,  regional  adequacy  forecasts  and  a  regional  network  capacity  plan.  In  2011  Austria 

joined the Pentalateral Energy Forum, that is since sometimes referred to as PENTA

+. 

The  TEN-E  groups  for  electricity  (North-South  Interconnections  [NSI]  West  Electricity,  NSI  East 
Electricity) and gas (NSI East Gas, Southern Gas Corridor) have successfully adopted a regional list of 
PCIs which constituted the basis for the preparation of the EU-wide lists in 2013 and 2015. 

The  voluntary  technical  regional  initiatives  on  electricity  (Electricity  Regional  Initiative  [ERI]  Central 
East, ERI Central-South) and gas (Gas Regional Initiative South-South East) focus on developing and 
testing solutions for cross-border issues, regarding (early) implementation of the EU energy acquis or 
initiating pilot-projects that can be exported from one region to the other. 

Austria is also member of the only regional group existing for oil (Oil Supply Connections in Central-
Eastern Europe [OSC]).  

Austria also participates in the Germany-led round table on market developments. 

The  EU  macro-regional  strategies  for  the  Danube  Region  and  Alpine  Region  in  which  Austria  takes 
part can be used as a basis for regional cooperation on energy. European Territorial Cooperation  – 
'Interreg'  –  under  EU  cohesion  policy  also  provides  further  opportunities  for  cross-border, 
transnational and interregional cooperation, including in the Energy Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 

23 

 
 
                              Energy Union –Austria 

Adaptation  and  Housing.  Austria  is  participating  in  the  partnership  on  Housing,  with  the  city  of 
Vienna as co-coordinator. 

Austria  is  very  active  and  contributes  to  many  projects,  also  at  EU  level,  under  the  European 
Covenant of Mayors. 26 Austrian cities (including Vienna) are signatories of the European Covenant, 
representing approx. 23% of Austria's population. An example is the project "Green social housing for 
all"  in  Vienna,  as  part  of  which  low-energy  consumption  has  become  the  rule  in  new  houses,  with 
more and more reaching “passive house standards”. Already in 2010, 20 to 30% of the new homes 
were built to passive house standards. The city's CO2 reduction target is 21% by 2020. 

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

In Austria, by September 2016, one city (covering 0.01 million inhabitants) has committed to conduct 
vulnerability and risk assessment and develop and implement adaptation plans in the framework of 
the Covenant of Mayors for Climate and Energy. 

8.  Cohesion policy and EU-supported clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground, including investment possibilities to implement energy policy objectives in Austria which are 
complemented  by  national  public  and  private  co-financing,  aiming  at  optimal  leverage.  It  also 
ensures integrated territorial solutions to energy and climate challenges, supports capacity building 
and provides technical assistance. 

Over 2014-2020, cohesion policy is investing some EUR 81 million in energy efficiency improvements 
mainly  in  enterprises,  but  also  in public  and  residential  buildings  in Austria.  Cohesion policy  is  also 
investing significantly in R&I and in SME competitiveness in Austria, based on the national strategy as 
well  as  regional  strategies  for  smart  specialisation.  For  Austria,  the  strategies  include  a  focus  on 
energy and environment, material and production as well as mobility. At this stage, at least EUR 17 
million is foreseen for investments in R&I and adoption of low-carbon technologies in Austria but this 
might increase further in line with the evolving content of the smart specialisation strategy. A further 
estimated  EUR  5  million 
in  supporting  the  move  towards  an  energy-efficient, 
decarbonised transport sector in urban areas. 

invested 

is 

24 

 
 
 
                              Energy Union –Austria 

(source: DG REGIO) 

Overall, the cohesion policy investments in Austria over 2014-2020 are expected to contribute to an 
estimated annual decrease of GHG emissions of around 213,000 tonnes of CO2eq.  

For  example,  the  ‘Research  center  Energetikum  –  Living  Lab’  jointly  run  by  Burgenland  Research 
Center and the Fachhochschule Burgenland is a multifunctional centre where research is carried out 
on  the  premises  while  the  building  functions  as  both  an  energy  supplier  and  a  storage  centre.  It 
focuses on a number of individual technologies, such as solar and photovoltaic systems, heat pump 
systems, storage technologies, as well as developing a system-wide control engineering strategy that 
takes user behaviour into account. The project cost, including support from the European Regional 
Development Fund (ERDF), amounted to EUR 584,000. 

Through  its  support  to  sustainable  transport  systems,  the  Connecting  Europe  Facility  (CEF)  also 
contributes  to  the  goals  of  the  Energy  Union.  Following  the  Austrian  participation  in  the  CEF  – 
Transport  2014–2015  calls,  the  Austrian  action  portfolio  comprises  28  signed  grant  agreements, 
allocating  EUR  738.5  million  of  actual  CEF  Transport  Funding  to  Austrian  beneficiaries  (state: 
February  2017)20. The transport mode  which  receives  the highest  share  of  funding is  rail  (89.3%  of 
actual funding). In the rail sector four main areas of intervention can be identified: the Brenner Base 
tunnel,  the  Koralm  railway  line on the  Baltic-Adriatic Corridor,  the completion  of  the works  on the 
cross-border section with Germany and The European Railway Traffic Management System (ERTMS).  

The  main  focus  for  the  Austrian  road  actions  is  to  overcome  cross-border  bottlenecks  both  on  the 
road  connection  between  Vienna  and  Brno  (Czech  Republic)  on  the  Baltic-Adriatic  Corridor  and  on 
the  border  between  Austria  and  Slovenia  with  the  Karawankentunnel.  In  the  field  of  Cooperative 
Intelligent Transport Systems and Services (C-ITS), Austria is an active part of "C-Roads", a platform of 
Member States working on the deployment of C-ITS services. Austria is also involved in Europe wide 
actions  promoting  the  use  of  alternative  fuels  through  Hydrogen  Refuelling  Stations  and  ultra-fast 
electric charging stations.21 

20 Note that European Economic Interest Groups and International Organisations are excluded from the analysis. 
21 Source: INEA 

25 

020406080100120Energy and Low-carbon R&ILow-carbon transport[Million EUR]ATERDF and Cohesion Funds allocation on energy, low-carbon transport and low-carbon R&I 975Total alocation [mn EUR]