Gas prices are falling! Klagenfurt households will soon save up to 175 euros!

Gas prices are falling! Klagenfurt households will soon save up to 175 euros!

The Austrian energy market continues to be dynamic, particularly due to the latest developments in gas prices and the promotion of renewable energies. From July 1, 2023, Tigas, the Tyrolean energy supplier, will significantly reduce gas prices. This reduction in the labor price from 7.22 to 6.05 cents per kilowatt hour gross enables an average household with an annual consumption of 15,000 kWh to save around 175 euros annually. Tigas emphasizes this as a measure to offset increases in fees and network charges. In comparison, Wien Energie charges 7.57 cents per kWh, significantly more than Tigas, whose offer is the cheapest in Austria. Security of supply remains guaranteed as the gas storage facilities were over 87% full at the beginning of the year, according to information from Cosmo.

In the context of the expansion of renewable energies, however, there is also discussion about the planned Renewable Gases Act. Currently, the majority of the biogas produced flows into electricity generation and only 15 of 300 biogas plants feed into the gas network. Tigas sees positive effects of the planned law, which is intended to achieve a biogas share of at least 10% in the gas network by 2030. However, the specific design of the funding system for feeding in biogas and hydrogen is still being worked on by parliament.

Regulatory changes and challenges

Additionally on the agenda is the Renewable Energy Act (EEG), a small amendment to which was recently passed by the Federal Cabinet. These measures, which are part of the EEG amendment, include a temporary suspension of the maximum rated output of existing biogas plants until the end of 2024 and a more flexible manure bonus, which will be extended until April 30, 2024. Biogas reports on the positive statements at industry level, including from Sandra Rostek, head of the capital's bioenergy office, who calls for adjustments to the technical requirements to reduce methane emissions.

Nevertheless, numerous industry representatives say that the amendment to the electricity price brake (StromPBG) creates more problems than it solves, which illustrates the great need for improvement. The aim of the bioenergy industry remains to strengthen and better represent it in politics.

Austria's path to climate neutrality

Overall, Austria's energy system is changing, with the share of renewable energy reaching 41% in 2023, heavily influenced by hydropower and biomass. By 2030, the country plans to increase the share of renewable energy to at least 57%. However, 59% of the energy supply is currently based on fossil fuels such as coal, natural gas and oil, most of which are imported. This information comes from energie.gv.at.

A climate-neutral Austria by 2040 is an ambitious goal on the agenda. Innovative technologies to increase energy efficiency, such as the increase in heat pumps and biomass heating, are central elements of this. Over 57,000 heat pumps were sold in 2023 and sales of biomass heaters are also showing an increase. These developments are essential to significantly reduce CO2 emissions and reduce dependence on fossil fuels. In addition, photovoltaics enables a strong increase in installed capacity, which has grown by 69%, and reinforces the trend towards the use of renewable energies in Austria.