Renewable hydrogen: Green light for up to €820 million in funding
Vienna (PK) – Large energy suppliers should, at least until the end of 2027, be prohibited from offering purchase or sales prices or other business conditions that would most likely not arise under effective competition. For an appropriate one Legislative initiative The MPs spoke in favor of a “federal law to mitigate the consequences of crises and to improve market conditions in the case of dominant energy suppliers” from the ÖVP and the Greens National Council unanimously. The NEOS pushed for an amendment to completely eliminate the time limit by the end of 2027, but remained in the minority. They also remained in the minority with a motion for a resolution for a reform package for the energy industry. Among other things, the NEOS demand that politicians should not be able to hold supervisory board positions in energy supply companies and insist on unbundling network providers and energy suppliers.
The National Council voted for this with a large majority Law to promote the production of renewable hydrogen. This will make federal funds of up to €820 million available for hydrogen production projects. The aim is to promote the production of hydrogen whose energy content comes from renewable energy sources with the exception of biomass. However, an amendment from the SPÖ remained in the minority. The Social Democrats advocate further funding criteria for the matter. In their view, negative effects on the local water supply should be ruled out in advance and the promotion of social and employee protection standards should be established. In the interests of transparency and traceability, an annual evaluation of the use of funds is also required.
Prevention of price abuse in the energy sector
As far as the “Federal Law to Mitigate the Consequences of Crisis and to Improve Market Conditions in the Case of Market-Dominating Energy Suppliers” is concerned, the aim is to prevent price abuse and thereby improve market conditions in the case of market-dominant energy suppliers. However, energy supply companies should have the opportunity to prove that a deviation is objectively justified. The provision is limited to December 31, 2027.
The measure addresses the problem of non-transparent pricing, which has also fueled inflation, said Jakob Schwarz (Greens). The authorities are now being given a means to take action against it. Christoph Stark (ÖVP) also emphasized that the Federal Competition Authority and E-Control will be able to check the prices of dominant energy companies in the future. In addition, competition is promoted by preventing price abuse.
The law is “better than nothing”, but there is a fear that it will remain toothless, said Michaela Schmidt (SPÖ). Overall, it sees an admission of the federal government’s “failure” to combat inflation. There are almost only such market-dominant companies in Austria, said Axel Kassegger (FPÖ). Measures would have been needed much earlier, he agreed with Michael Schnedlitz (FPÖ), who demanded “compensation” to customers for the profits that had already flowed to the energy companies, most of which were publicly owned.
The key point is the reversal of the burden of proof, so that market-dominating energy companies can now be put on the curb, says Karin Doppelbauer (NEOS). In their view, the regulation should apply beyond 2027.
Environment and Energy Minister Leonore Gewessler noted that the gas and electricity market is characterized by a high level of concentration. The mandate for politicians is to prevent potential market abuses. This is exactly what the special law, which also affects district heating, is about. In Germany, the regulation has proven itself and is constantly being extended. According to the minister, black sheep on the energy market should be more easily brought to justice.
Promoting renewable hydrogen in Austria
To promote renewable hydrogen, of the federal funding of up to €820 million decided today, €400 million should be available for award in a competitive auction as early as 2024, and the remaining €420 million should be available for award by 2026. The based on this With regard to the corresponding lead times and construction times, payments should be completed by 2041 at the latest. The corresponding “Federal Law on the Promotion of the Production of Renewable Hydrogen of Non-Biogenic Origin” aims at the construction and operation of production facilities for renewable hydrogen of non-biogenic origin in the territory of Austria. The subsidies are to be granted from the start of operation of the production plant in the form of a fixed bonus as a surcharge per unit of renewable hydrogen produced for a period of ten years. Austria Wirtschaftsservice GmbH (aws) is named as the settlement agent. More detailed provisions should be laid down in a directive to be issued.
According to the explanations, this provision of national funds allows additional national projects to be supported in the tenders within the framework of the EU Innovation Fund. However, if the option of an auction via the EU Innovation Fund is not taken up, the aws can also be entrusted as the processing agency with carrying out an auction by means of a call for tenders. The present draft law is also intended to create the budgetary authorization to justify the prior burdens up to 2041 that arise from the promise of funding of up to €820 million.
Alois Schroll (SPÖ) criticized the fact that it was not clear who, when and why should receive funding. In addition, only €400 million in total was announced, now it is suddenly €820 million. It lacks transparency and clarity. Gerhard Deimek (FPÖ), on the other hand, can see positive approaches, although he also described the doubling of funds to €820 million as “interesting”. Similar to Schroll, he criticized the fact that the details had to be determined by ministries. The measures will not result in a rapid ramp-up of production; rather, we will also have to concentrate on other hydrogen sources. Nevertheless, the FPÖ will agree.
Karin Doppelbauer (NEOS) sees clever regulations in the fact that future technologies are promoted and an auction model is used, which also creates competition. In addition, infrastructure for hydrogen is also needed.
From the perspective of Lukas Hammer (Greens), the measures represent another important building block in the transformation process and an essential step in the hydrogen strategy. However, hydrogen is the “champagne of the energy transition” and a scarce resource that needs to be used specifically where there is none cheaper alternative. Joachim Schnabel (ÖVP) discussed that funding can now also be provided at the national level if companies do not receive funding through the European Hydrogen Bank calls. In addition, as a new approach, the company will be promoted and, overall, investment will be triggered, climate change will be counteracted and the local economy will be strengthened. In relation to the demands of the SPÖ motion, he spoke out against “gold plating”, especially since the EU requirements were sufficient.
Environment and Energy Minister Leonore Gewessler emphasized that climate-neutral hydrogen is a central part of the answer to the challenges of this time. The development of green hydrogen will continue to be pushed forward, said Gewessler. The law also helps to reduce the high production costs of green hydrogen. There is a window for national funding within the EU’s competitive auctions. The aim of the law is that companies can take part in the auction as early as 2024. (Continuation of the National Council) mbu
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