"Hop or drop"

Renewables criticize chaos in government plans

Uncertainty regarding investments in photovoltaics and co.

(Bild: ROBERT JAEGER / APA / picturedesk.com)

The black-red-pink coalition is also cutting costs in climate policy. Naturally, the renewables sector is not happy about this. The current "hop or drop" policy is unsettling both companies and consumers. Clear framework conditions and concrete announcements in the government program are largely absent.

Martina Prechtl-Grundnig, head of the umbrella organization Eneuerbare Energie, sees some positive aspects in the government program, but many points are too vague. There is also a great deal of legal uncertainty regarding many subsidies. "We need immediate clarity on the continuation of subsidies for replacing old fossil fuel heating systems."

"Full braking" when replacing boilers
We are currently experiencing a "stop and go" in the subsidy programs. This is unsettling not only for companies, but also for consumers, who prefer to wait and see before investing. The sudden stop last year has already led to a "full stop" in boiler replacements, criticizes ProPellets boss Doris Stiksl.

Some good points are included in the government program. However, the government's current approach is damaging confidence and raises doubts.

Martina Prechtl-Grundnig, Dachverband Erneuerbare Energie

Bild: Jöchl Martin

One thorn in the side of green electricity producers is the stricter profit levy. "This decision right in the first five days of the new government torpedoes planning security," says Prechtl-Grundnig. Specifically, the revenue cap was to be reduced from EUR 120 per megawatt hour (MWh) to EUR 100 per MWh and the skimming rate increased from 90 percent to 95 percent. For old plants, a limit of only 90 euros applies. For fossil fuel operators, on the other hand, the levy is based on profit and not on revenue - an injustice, according to representatives of photovoltaic, wind power and other associations.

Criticism of "cloak-and-dagger actions"
In the photovoltaic sector, the sudden abolition of the VAT exemption for private solar installations is causing particular displeasure. "Everyone was prepared for this subsidy to expire at the end of this year. Now it has been cut off before then in a cloak-and-dagger operation," says Vera Immitzer, Managing Director of Photovoltaik Austria, who warns of setbacks.

The industry is once again calling for the urgent adoption of the Renewable Energies Expansion Act, the Electricity Industry Act and the Green Gas Act. Everything has already been negotiated and the government keeps putting companies off. Now the time has come in the summer.

High uncertainty weighs on investment climate
The high level of uncertainty, unclear framework conditions and the vague announcements of the black-red-left government would also put massive pressure on the investment climate. "There is enough capital available, but with such uncertainty it is not being invested," says Florian Maringer, spokesperson for IG Windkraft. "The legislator is intervening in the economy here - even retroactively. From a business perspective, this is a disaster," says the wind power representative. The fact that the coalition is deviating from its government program just a few days after taking office raises doubts as to how seriously the rather vague commitments in the renewable energy sector should be taken.