Austria Renewable Energy Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Austria Renewable Energy Market Trends and Insights

Government-backed 100% Renewable-Electricity Target by 2030

Austria’s Renewable Energy Expansion Act mandates an extra 27 TWh, allocating 11 TWh to photovoltaics, 10 TWh to wind, 5 TWh to hydropower, and 1 TWh to biomass. Policy certainty unlocked a EUR 1.3 billion financing package for Burgenland Energie Group, illustrating how clear targets draw capital. ÖNIP allocates EUR 9 billion to transmission upgrades through 2034, easing bottlenecks.^{[1]Climate Ministry, “ÖNIP Netzinfrastrukturplan,” klimaschutzministerium.at} Timelines are tight; Austria became a net electricity importer in August 2024, underscoring the urgency of the situation.

Hydropower-anchored Grid Flexibility Enabling VRE Integration

More than 3,000 hydropower plants, totaling 14.1 GW, equip Austria with unmatched flexibility. Facilities such as the 430 MW Reisseck II pumped-storage plant help balance wind and solar variability, while the Kronstorf substation upgrade is expected to introduce a 220-kV loop by 2030. This agility enabled renewables to supply 87% of the electricity in 2023, far exceeding the EU average.

Rapid LCOE Decline of Solar PV and Onshore Wind

Solar installations reached 2.22 GW in 2024, supported by falling equipment costs and new agrivoltaic models, which were financed by a EUR 80 million European Investment Bank loan to PÜSPÖK Group. Wind economics also improved, as evidenced by the 62 MW WEB Windenergie project in Lower Austria, which was backed by EUR 20.1 million in EIB funding. Technology gains, however, are offset by grid-connection fees and permitting delays.

EU ETS and National CO₂ Pricing Raising Fossil-Fuel Costs

Carbon pricing squeezes fossil fuel heating and transportation, accelerating the adoption of renewables. Heat-pump sales rose from 31,184 units in 2021 to 49,192 units in 2022 as carbon levies took hold. OMV invested almost EUR 200 million to co-process 160,000 tonnes of liquid biomass into renewable diesel at its Schwechat refinery, thereby reducing CO₂ emissions by 360,000 tonnes per year.^{[2]OMV, “Schwechat Biorefinery Fact Sheet,” omv.com}

Grid Congestion and Lengthy Permitting Procedures

Redispatch volumes could sextuple by 2040 without coordination, the European Commission warns.^{[3]European Commission, “Recommendations on Austria NECP,” ec.europa.eu}Since 2018, the Germany-Austria congestion management system caps cross-border flows during peak periods. ÖNIP’s EUR 9 billion build-out will help, although completion is expected to stretch to 2034.

Limited Land Availability for Utility-Scale Wind and Solar

Mountainous terrain and dense settlement restrict the availability of greenfield sites. Agrivoltaics offers a workaround, for instance, on PÜSPÖK Group’s six dual-use farms in Burgenland. Regional planning instruments now earmark additional zones for renewables; yet, high-yield locations remain scarce, thereby inflating project costs.

Segment Analysis

By Technology: Geothermal Leads the Next Wave of Additions

Geothermal capacity is projected to grow at a 38.0% CAGR through 2030, the fastest rate of any technology in the Austria renewable energy market, as deep wells in Vienna and Graz move from exploration to construction. Hydropower retained 46.4% of Austria's renewable energy market share in 2024, anchoring frequency stability even as solar and wind energy expand. Pumped-storage additions, such as the 480 MW Limberg III project, demonstrate how legacy hydro assets are being repurposed for long-duration flexibility. Utility-scale solar added 1.5 GW in 2024 and now benefits from levelized costs below EUR 40 per MWh, while onshore wind added 400 MW, with capacity factors above 35% in Burgenland. Bioenergy supplied 1 TWh in 2024 but faces feedstock constraints, limiting further growth.

The Austrian renewable energy market size for geothermal heat alone could surpass 0.5 GWth by 2030 if current drilling schedules hold, providing urban district-heating operators with a baseload alternative to natural gas. Solar rooftops continue to scale under zero-VAT rules, while hybrid solar-plus-storage plants, such as Energie AG's 50 MW site, illustrate the shift toward firm renewable energy sources. Wind repowering is gaining momentum as operators replace older 2 MW turbines with 4-6 MW machines on the same pads, maximizing output from increasingly scarce land. Small hydropower remains capped by environmental rules, although digital turbine retrofits are lifting efficiency at run-of-river plants. Together, the diversified portfolio mitigates weather risk and keeps Austria on track to achieve its 100% renewable electricity target.

Note: Segment shares of all individual segments available upon report purchase

By End-User: Residential Prosumers Accelerate Adoption

Utilities held 64.9% of the Austria renewable energy market share in 2024, but their dominance is eroding as households embrace rooftop solar and battery storage. Residential capacity is rising at a 10.5% CAGR thanks to VAT-free panels under 35 kW and grid-fee discounts of up to 57% for local peer-to-peer trades. Hybrid inverters launched by Fronius in 2024 enable prosumers to earn income from frequency regulation, reducing payback periods to under seven years. Commercial and industrial users are also expanding, led by Voestalpine’s 200 MW wind PPA that locks in low-carbon power for steel production.

Although the Austrian renewable energy market, controlled by utilities, is expected to continue growing in absolute terms, its share is anticipated to decline below 60% by 2030 as distributed generation expands. Utilities are responding with hybrid projects that blend solar, wind, and storage to offer firm capacity and ancillary services. Community-energy aggregators now bundle output from multiple rooftops to bid into balancing markets, further shifting revenue away from centralized assets. Industrial rooftops lag because of split-incentive barriers, yet energy-as-a-service contracts are starting to unlock that segment. The emerging mix of centralized hydro and decentralized solar, wind, and storage assets positions Austria for a more resilient, consumer-driven power system.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Lower Austria, Burgenland, and Upper Austria combine to form over half of the current renewable energy capacity, shaped by their flat terrain, high solar irradiation, and mature wind resources. Burgenland alone has secured EUR 1.3 billion to fund 700 MW of new solar and wind projects, and plans to double that figure by 2030. Hydropower-rich Alpine regions, such as Tyrol and Carinthia, feed surplus power into eastern load centers, their pumped-storage systems cushioning variability and underpinning regional trade.

Vienna pioneers urban renewables and is building a geothermal plant in Aspern to heat 20,000 households by 2028, removing 54,000 t of CO₂ annually.^{[4]OMV, “Geothermal Wien Energie JV,” omv.com} Energy-community pilots cluster here, coupling rooftop PV, battery storage, and peer-to-peer platforms. Upper Austria’s energy mix features 30% renewables led by biomass, matching its industrial heat demand while progressing on solar and wind targets

Austria’s EUR 9 billion ÖNIP transmission plan upgrades east-west corridors and integrates future hydrogen pipelines, creating a platform for cross-border power flows. The Austrian renewable energy market benefits as congestion eases, though the full benefits materialize post-2030.