Electricity shock for Austria: New ElWG endangers green energy transition!

Electricity shock for Austria: New ElWG endangers green energy transition!

On November 18, 2025, the Austrian government presented a draft for a new electricity industry law (ElWG), which has sparked intense debate in the energy industry. The draft is viewed as detrimental to domestic energy policy, particularly by associations in the wind, photovoltaics (PV) and biogas sectors. The criticism relates primarily to increasing network usage fees, which could increase the costs of clean electricity and are themselves described as an “Austrian surcharge”.

More than 200 companies in the wind industry are already making worrying forecasts that could jeopardize future growth. The wind power interest group (IG Windkraft) has classified the project as an energy policy fiasco because it is feared that it could lead to a reduction in regional production, falling investments in renewable energies and an increased dependence on electricity imports. Managing director Florian Maringer speaks of a threat to security of supply and the economic framework for domestic providers.

Criticisms of the new law

The draft ElWG contains several key points of criticism, including:

• Erhöhung der Netznutzungsentgelte für erneuerbare Erzeuger, wodurch heimischer Strom teurer wird.
• Förderung von Stromimporten, die die regionale Wertschöpfung schmälern.
• Erweiterung der Spitzenkappung, was die Kalkulierbarkeit von Projekten untergräbt.
• Fehlender Energiekrisenmechanismus sowie intransparente Abrechnungen.

The Burgenland state government in particular has sounded the alarm and warned of the dangers that the law could pose to households and businesses. The government emphasizes that the proposed changes will not result in electricity becoming cheaper. In fact, trust in domestic renewable energy sources could be further shaken.

Demands of the renewable associations

In view of these concerns, the renewable energy associations are raising their voices and calling for a crisis meeting with the responsible minister in order to revise key aspects of the law. An urgent press conference will be announced for November 19, 2025 to explain the impact of the bill and discuss these requests. Participating industry experts put forward specific demands, including:

• Stopp neuer Netzentgelte für Einspeiser.
• Klarere Rahmenbedingungen für Investitionen in erneuerbare Energien.
• Abbau bürokratischer Hürden.
• Transparente Gestaltung der Strompreise.

IG Windkraft emphasizes the importance of a sustainable and secure energy supply and supports the expansion of wind energy, which already supplies around 2.6 million households with electricity. A recent survey shows that 83% of Austrians support the expansion of wind energy.

Energy law in Austria, which forms the basis for many of these regulations, aims to make the energy supply secure, sustainable and climate-friendly. Challenges and legal adjustments will continue to be pursued in the context of renewable energies in order to achieve climate goals. The use of renewable energies is to be increased significantly by 2030, with central laws to promote electricity from renewable sources and to secure energy supplies in times of crisis being important. Details on the existing laws can be viewed on the website of the Federal Ministry for Economic Affairs and Energy.

The concerns about the current ElWG illustrate the need for a sustainable energy policy that meets the challenges of the present without losing sight of the future development of domestic generation. Challenges are numerous, and as developments will show, broad cooperation from all those involved is required to make the energy transition successful.