Energy transition in danger: Industry warns to act on the federal government!

Energy transition in danger: Industry warns to act on the federal government!

on April 25, 2025, one day before the day of renewable energy, the umbrellable Energy Austria (EEÖ) urgently warned in an open letter to the federal government. The organization emphasizes that the energy transition is not a cost factor, but rather represents a decisive economic stimulus program for Austria. Current political developments, however, endanger investments, jobs and the credibility of the Austria business location, reports [ots.at] (https://www.ots.at/presseaus-sung/ots_20250425_ots0007/Branche-warnt-vestoSSTOP-und-Sduer location).

EEÖ managing director Martina Prechtl-Grundnig said concerns about the political irritation and the impending standstill. The situation is additionally tightened by an abrupt funding stop at the "Rise out of oil and gas" program without clear continuation prospects. The tightening of the revenue creation, the end of the VAT exemption for photovoltaic systems and the lack of important legal regulations such as the Electricity Economic Act and the renewable expansion of acceleration law create uncertainties in the sector.

The effects on investments

The consequences of these political decisions are serious: many investments are postponed or stopped, the financing costs are increasing, and the willingness to new hires decreases. The EEÖ sees energy transformation as one of the greatest economic opportunities for Austria. Currently over 5,000 companies with more than 50,000 jobs are ready to actively promote the energy transition. However, these companies need stable framework conditions to be able to act successfully.

The continued preference for fossil fuels is considered particularly critically. Every year, around 6 billion euros in climate -damaging subsidies put a strain on the budget and thus delay the urgently needed energy transition. In its letter, the EEÖ formulates five central claims to the federal government:

• End of the preference for fossil fuels and successively dismantling climate -damaging subsidies.
• Continuation of the program "Out of oil and gas" with a reliable framework.
• Farewell to the Electricity Economic Act before summer.
• Introduction of a renewable expansion acceleration law.
• Renewable Gase Act for the quick run-up of green gases in Austria.

political wrong decisions and their consequences

In another context, the EEÖ warns that planned austerity measures, which were announced by the new government, consisting of FPÖ and ÖVP, could lead to a “short -sighted broken hustle and bustle of the energy transition”. These measures particularly concern funding programs for small photovoltaic systems, the heating exchange on renewable energy and electromobility. It is critical that climate -damaging subsidies are not integrated into the savings, which could further increase Austria's fossil dependence.

In the worst case, the deletions of grants could result in up to 11 billion euros in annual costs for fossil imports. If the energy and climate goals fails, up to 9 billion euros could be due for CO2 certificates. The EEÖ therefore calls for massive investments in energy transformation in order to successfully implement the energy transition. The new federal government must create the political and legal framework to promote the conversion of the energy system, such as ots.at emphasized.