Direct marketing is a method by which electricity producers, particularly from renewable energy sources, sell their electricity directly on the market rather than via traditional energy suppliers. This is done either via the electricity exchange or by concluding contracts with large industrial consumers. This form of marketing offers the opportunity to react more flexibly to market prices and realise higher revenues.

In the European and Austrian context, direct marketing has become increasingly important in recent years, particularly as a result of the liberalisation of the energy market and the increasing integration of renewable energies. In Austria, there are numerous plants, particularly from wind and solar energy, that sell their electricity using this method. The Green Electricity Act 2012 promoted direct marketing by creating a market premium as an incentive for operators of renewable plants. This market premium is paid out in addition to the exchange price achieved in order to guarantee a stable source of income and compensate for fluctuations.

Direct marketing offers numerous advantages. One of the main advantages is that electricity producers can participate more directly in market prices. This can lead to higher revenues in times of high exchange prices. It also enables participation in balancing energy markets, in which flexibly generated electricity, for example from wind power or biogas plants, is made available to stabilise the electricity grid. This flexibility is becoming increasingly important, especially with volatile energy sources such as wind and solar power.

For Austria and the European energy market, direct marketing is a central component of the energy transition. The increasing amount of electricity from renewable energies requires flexible and market-orientated approaches in order to efficiently integrate these energies. Direct marketing helps to ensure that renewable energies can also hold their own economically on the market in the long term.

The role of direct marketers, i.e. specialised companies that take over marketing for producers, is particularly important here. They take over the marketing, optimise yields and secure access to the electricity exchange. For many smaller electricity producers who do not have the necessary expertise or resources to trade electricity themselves, direct marketers offer a centralised service.

One example from Austria is the provider ÖMAG, which is active in the field of direct marketing for renewable energies. ÖMAG offers electricity producers the opportunity to market their electricity either directly on the electricity exchanges or via bilateral contracts with large electricity consumers. This structure ensures that electricity producers can always achieve the optimum price.

However, direct marketing is also associated with risks. Market price volatility can lead to fluctuations in income if exchange prices are unexpectedly low. However, the market premium in Austria helps to partially cushion these fluctuations. Long-term contracts, known as Power Purchase Agreements (PPAs), are another way of minimising the price risk and securing stable income.

Direct marketing is expected to become even more important in the future, particularly in the wake of increasing demands on the flexibility of the electricity system. New technologies such as smart grids and storage solutions will enable producers to integrate their systems even better into the market and adapt their electricity production more dynamically to demand. These developments will further strengthen the role of direct marketing and enable renewable energies to become even more competitive.

Overall, direct marketing is a key strategy for driving forward the expansion of renewable energies in Austria and Europe and at the same time ensuring the economic viability of generation plants.