The legal framework for renewable energies is constantly changing as the world increasingly favours sustainable energy solutions. In recent years, numerous new laws, regulations and initiatives have been introduced in Austria relating to the utilisation and promotion of renewable energies. The current legal trends and developments in the field of renewable energies, specifically the new investment subsidy ordinance and the so-called “lighthouse laws” that are soon to be passed by the National Council, are highlighted below.
1. Investment Subsidies Ordinance
The Investment Subsidies Ordinance, which serves the expansion of renewable energy plants in the electricity sector, was announced on 23 April 2025. This means that anyone interested in investing in renewable energy can apply for a financial subsidy before their planned system is commissioned. This includes photovoltaic systems, small hydropower plants, small wind power projects and electricity from biomass through combined heat and power generation.1
The new regulation specifies how investment grants for the construction and expansion of photovoltaic systems and for the simultaneous purchase of electricity storage systems are to be implemented and processed. The new regulation also defines the framework conditions for the subsidisation of investment grants for hydropower, wind power and biomass plants. Funding calls, the amount of funding and the funding rates for 2025 have now been finalised.
Under the Electricity Investment Subsidy Ordinance 2025, the Ministry of Economic Affairs and Energy is providing a total of 70 million euros for investment subsidies via OeMAG. Both companies and private individuals are entitled to apply for the grants, which are awarded as fixed amounts per installed capacity.2
2. Lighthouse laws
As part of the new 2025 government programme, it was decided that the three lighthouse laws, namely the EABG, EGG and ElWG, should be implemented by summer 2025.3
All three laws have been planned for some time. However, they failed to be passed due to the approval hurdles in parliament. It is nevertheless undisputed that the enactment of the three laws would represent an acceleration of the transformation of the energy system.4
2.1. Renewable Energy Expansion Acceleration Act (EABG)
The Renewable Energy Expansion Acceleration Act is intended to create a single competent authority to issue licences for installations in future. This applies to installations for the generation of energy from renewable sources, electrical power and storage facilities, district heating and cooling networks and hydrogen networks. This will enable a “fast track” and “one-stop shop”, as authorisations will no longer be required from different authorities. The process will also be accelerated for projects that fall below the threshold of the obligation to carry out an environmental impact assessment.5
The amendment to the EU Renewable Energy Directive (RED III, 2023/2413) is intended to significantly simplify and accelerate the procedures for authorising clean energy generation plants and the associated infrastructure. The aim is to accelerate the expansion of renewable energy in the EU. A few years ago, the Austrian federal government already wanted to extensively revise the procedural law regarding renewable energies and make it more efficient. In the ministerial speech in January 2023, it was announced that the EABG would be enacted at federal level and that the law would implement the requirements of RED III in a standardised manner.
2.2 Renewable Gas Act (EGG)
The Renewable Gas Act aims to secure the gas supply and increase the share of renewable gas in Austrian gas sales to 7.5 TWh by 2030. The introduction of a mandatory green gas quota by 2030, the continuation of the mandatory green gas quota from 2031 to 2040 and the establishment of an EGG settlement centre are the main measures enshrined in the Act.6
Furthermore, the law is intended both to protect the climate and to help reduce Austria’s dependence on foreign energy sources (Russian natural gas). Accordingly, green gases should completely cover domestic gas consumption by 2040.7
Suppliers that supply end consumers in Austria against payment are obliged to fulfil the green gas quota mentioned above. They must also comply with the quotas set out in the table below, which are increased annually. The fossil gas volumes must therefore be replaced by green gas.
| 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| 0.35% | 0.95% | 1.70% | 3.05% | 4.48% | 7.10% | 8.34% in total, but at least 6.5 TWh8 |
2.3 Electricity Industry Act (ElWG)
The planned ElWG is intended to create a legal framework for the modernisation of the electricity market and is intended to replace the previous ElWOG. It should also make it easier to integrate renewable energy and adapt market structures to current developments.9
The Act is intended to transpose the Internal Electricity Market Directive (EU) 2019/944, the Energy Efficiency Directive (EU) 2012/27 and the Renewable Energy Directive (EU) 2018/2001 into national law.10
The following key points of the law are important:
- Changes to the catalogue of terms
- Strengthening direct and self-supply
- Provisions on energy storage systems
- Further development of the network infrastructure and management
The ElWG is intended to create a forward-looking and clear legal framework for the generation, storage and consumption of renewable energy. It also leads to better transparency with regard to grid connection capacities and data management. This will benefit both consumers and companies.11
3. Conclusion
The “lighthouse” laws still to be finalised by the National Council will result in extensive changes to the renewable energy landscape in Austria. In particular, the subsidy and procedural regimes are to be put on a completely new footing with the EABG and the Investment Subsidies Ordinance.
Footnote(s):
1 Source: EAG Investment Subsidy Ordinance – Electricity Amendment 2025 announced – WKO; government risks investment standstill in renewable electricity.
2 Source: More Europe, more impact: New “Made in Europe” bonus as a signal for a resilient energy transition.
3 Source: Government Documents – Federal Chancellery Austria.
4 Source: Government Programme | 360° Renewable Energy.
5 Source: Renewables turbo for Austria’s energy independence – BMIMI INFOTHEK; circular resolution of 11 January 2023 – Federal Chancellery of Austria.
6 Source: Renewable Gas Act – EGG (2455 d.B.) | Parliament Austria.
7 Source: Council of Ministers passes Renewable Gas Act.
8 Source: Resolution of the National Council on the Renewable Gas Act.
9 Source: Federal Ministry for Economic Affairs, Energy and Tourism, Energy law.
10 Source: Cover sheet: Electricity Industry Act, Energy Poverty Definition Act; Energy Control Act, Amendment (310/ME) | Austrian Parliament.
11 Source: Electricity Industry Act: New rules to accelerate the energy transition & expand the grids – BMIMI INFOTHEK.