An Austrian funding scheme focused on renewable energy sources to support electricity production has been given European Commission approval.

Via this initiative, funding will be allocated via competitive bidding processes for electricity from wind, solar and biomass, supporting Austria’s target for 100% renewable energy by 2030.

The funding payments will be made through a top-up premium, and until the end of 2032 are forecast to total approximately €4.4 billion.

According to the Executive Vice President Margrethe Vestager, who heads up competition policy: “This scheme will enable Austria to support renewable technologies as it has set its goal to achieve 100% CO2-free electricity generation in 2030.

“The measure will contribute to the reduction of CO2 and other greenhouse gas emissions, in line with the EU Green Deal objectives and the environmental targets set in Austria’s Recovery and Resilience Plan, without unduly distorting competition in the Single Market.”

This follows on from the European Commission backing new state aid rules supporting environmental protection projects, such as climate protection and green energy generation. 

Austria’s goal of increasing the share of electricity produced from renewable energy sources from the present figure of 75% to 100% by 2030, is one of the targets set out in the country’s Recovery and Resilience Plan, aimed at helping “Austria emerge stronger from the COVID-19 pandemic,” says the European Commission.

Back in June last year, when the plan was first approved, President Ursula von der Leyen said: “Today, the European Commission has decided to give its green light to Austria's recovery and resilience plan. Austria is already a forerunner in the green transition. By placing a special emphasis on investments and reforms that further support our climate objectives, Austria is making a clear statement. We have endorsed your plan because we fully agree that bold action is needed to deliver the green transition.”