Wrangling over EABG: Greens reject draft, negotiations with government continue

Greens' criticism of expansion targets

From the Greens' perspective, the targets in the law align too little with the National Energy and Climate Plan (NEKP) that Austria submitted to the European Commission in 2024. The party's energy spokesperson, Lukas Hammer, spoke of a "Einzementierung des Stillstands in vielen Bundesländern." According to his party, the photovoltaic expansion targets for 2030 envisaged in the EABG would already be reached in five federal states this year, even without the law.

Recently, the interests of Austria's e-economy represented by Oesterreichs Energie, the Austrian Economic Chamber (WKÖ), and the energy agency (AEA) spoke out in favor of swift passage of the EABG. AEA Managing Director Franz Angerer said the law could "Mehr Klarheit für Projektentwickler, Standortgemeinden, Zivilgesellschaft sowie Behörden schaffen und Verfahren für Projekte der Energiewende beschleunigen."

Business: Pressure for swift passage

The governing coalition parties additionally argue with the threat of hefty penalty payments that could hit Austria without the EABG. Economics and Energy Minister Wolfgang Hattmannsdorfer (ÖVP) told the APA that the government is currently holding "gute Gespräche mit den Grünen," and that it hopes "dass am Ende die Vernunft und das Verantwortungsbewusstsein über ideologischer Verhandlungstaktik stehen werden." The Economics Ministry, in response to an APA inquiry, said it remained open to talks.

The energy spokespersons of the three governing parties — Laurenz Pöttinger (ÖVP), Alois Schroll (SPÖ), and Karin Doppelbauer (NEOS) — issued a joint appeal to the Greens in the evening to return to the negotiating table by Thursday. Pöttinger said the Greens' rejection that afternoon had come as a surprise and stressed: "wir geben nicht auf, wir wollen weiterverhandeln." Schroll declared, "unsere Hände sind ausgestreckt," and expressed hope that the Greens would "im Interesse der Energiewende die Vernunft siegen lassen."

Disputed issue: Hydropower

One of the substantive points at stake is hydropower. Boku researcher Günther Unfer said his group supports the law in principle: "Wir sind für dieses Gesetz, wir wollen eine Beschleunigung." In its current form, however, it endangers ecologically valuable river stretches. According to statistics, nearly 90 percent of Austria's roughly 5,000 hydropower plants are small installations with a capacity of less than one megawatt; together they contribute only about six percent to domestic electricity generation.

Conflict between federal and state governments

A conflict is also smoldering between the federal states. The Green climate councillor from Upper Austria, Stefan Kaineder, called for higher expansion targets and addressed the chairs of the Conference of Provincial Governors directly: "Österreich braucht mehr heimische Energie, nicht weniger. Wer jetzt die Ziele des Erneuerbaren-Ausbau-Beschleunigungsgesetzes verwässern will, gefährdet unseren Standort, unsere Versorgungssicherheit und unsere wirtschaftliche Zukunft." He directed his appeal to Tyrolean Governor Anton Mattle (ÖVP), Upper Austrian Governor Thomas Stelzer (ÖVP), Salzburg Governor Karoline Edtstadler (ÖVP), and Carinthian Governor Daniel Fellner (SPÖ).

Mattle reacted with surprise to Kaineder's remarks and accused the Greens of blocking the expansion of hydropower: "Mir wird aus den Verhandlungen zum Erneuerbaren-Ausbau-Beschleunigungsgesetz berichtet, dass die Grünen den Ausbau der Wasserkraft massiv blockieren." The environmental organization Greenpeace backed the demand for binding targets for the federal states, naming Carinthia, Upper Austria, and Salzburg as blockers.

Outlook: Negotiations ahead of Thursday

The course of events is reminiscent of the last-minute agreement on the Electricity Market Act, the so-called "Billigstromgesetz." Whether a breakthrough could still be achieved on the EABG remained open on Tuesday afternoon. According to both sides, talks between the government and the Greens were to continue.

The energy policy debate comes at a time when domestic electricity generation from renewable sources is supposed to be expanded in order to avoid looming EU penalty payments and strengthen security of supply. What role small hydropower plants should play in this in the future is one of the sticking points on which the negotiations between the federal government, the states, and the opposition are bogging down.