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Small hydropower as the key to the energy transition: potential remains unused!
The government is causing uncertainty in the area of renewable energies, while small hydropower is seen as the key to the energy transition.
Small hydropower as the key to the energy transition: potential remains unused!
The Austrian government's current energy policy is causing considerable uncertainty in the renewable energy sector, especially for small hydropower. According to Paul Ablinger, Managing Director of Kleinwasserkraft Österreich, this form of energy production, which despite its name is of little importance, is essential for ensuring energy security. On March 9, 2025, it was announced that the government was continuing the so-called skimming of sales for small producers with an output of 1 MW and lowering the “permitted” sales to 90 euros per megawatt hour. These measures primarily affect small and medium-sized companies negatively, without resulting in price reductions for end customers, as Ablinger emphasizes. Instead, the legislation could increase electricity prices and jeopardize climate goals, which could lead to further costs, he said APA OTS.
Call for faster approval for expansion projects
The Small Hydropower Association is now calling on the federal and state governments for quicker approval for new systems. In Styria, electricity output could be increased by up to 50 percent if existing unused resources are activated. There are over 4,150 small hydropower plants in Austria, which together currently generate around seven terawatt hours of energy - that corresponds to ten percent of annual demand. Ablinger sees great potential, especially in Styria, where an additional terawatt hour is lying idle, and in Carinthia, where 0.6 terawatt hours could be gained through necessary expansion measures energynewsmagazine.at reported.
The integration of small hydropower as the backbone of the energy transition could benefit significantly from faster approval procedures and the reduction of bureaucratic hurdles. Ablinger points out that the current approval process can take up to 15 years, which represents a significant disincentive. The great potential for creating jobs and strengthening the country's economy is being slowed down by the current legal situation and the slowness of the authorities. Ablinger and the industry are therefore calling for a rethink from politicians in order to promote the growth of small hydropower and at the same time make a contribution to the energy transition.