Government Official's Strategy: Lowering Electricity Costs

In a recent announcement, Austrian Economic Minister Wolfgang Hattmannsdorfer revealed his plan to make electricity prices more affordable for industrial consumers in Austria.

The current industrial electricity price in the country stands at 9.76 cents per kilowatt-hour (kWh) for the second quarter of 2025, as communicated by E-Control. However, it's essential to note that the wholesale price does not directly reflect the final price industrial customers pay, as additional costs such as network charges, taxes, and levies apply.

Hattmannsdorfer's energy plan aims to address this issue by focusing on three key areas: increasing storage capacity, speeding up procedures, and expanding networks. One such project that requires speedier permit procedures is the Luenerseewerk II, a large pumped storage power plant in Vorarlberg with over 1 GW capacity.

The network expansion is another crucial aspect of the plan, particularly for the Luenerseewerk II, where the pre-examination procedure will be initiated in the near future. Hattmannsdorfer advocates for a better-designed network in Europe, including the North-South line with the new German federal government.

The North-South line will bring cheap wind power from northern Germany to Austria, helping to balance wind-rich regions in northern Germany with consumption-intensive southern regions. This project is part of a broader European initiative, with Austria and Montenegro being primary partners, along with other EU member states along the TEN corridors.

Price stability and supply security are central goals of Hattmannsdorfer's energy plan. To achieve this, he plans to submit draft laws by summer to reflect public interest in these projects in the Energy Economics Act and the new Renewable Energy Expansion Acceleration Act (EABG).

Moreover, Hattmannsdorfer mentioned reconsidering CO2 pricing as part of his energy plan. This move could potentially lower costs for industries, making electricity more affordable while still addressing climate concerns.

However, the higher electricity price in Europe compared to other regions is causing some companies to reconsider their investment locations and where to build new energy-intensive plants. By making electricity cheaper in Austria, Hattmannsdorfer hopes to attract more industries to the country, boosting the economy and creating jobs.

The actual electricity prices for industrial consumers may differ due to variations in consumption profile and location. For instance, the industrial electricity price varies across regions, with the USA at 9 cents/Kilowatt-hour, China at 6 cents/kWh, and Europe at 13 cents/kWh.

The reduction in permit duration for such projects, as suggested by illwerke vkw CEO Christof Germann, would be advantageous in accelerating these large energy projects. By speeding up the process, Austria could become a more attractive destination for energy-intensive industries.

In conclusion, Hattmannsdorfer's energy plan presents a promising approach to making electricity cheaper in Austria, while also focusing on price stability, supply security, and environmental concerns. The plan includes initiatives such as the North-South line, Luenerseewerk II, and faster permit procedures, aiming to make Austria a more competitive location for energy-intensive industries.