The feed-in tariff (EEG) is an important funding instrument for supporting renewable energies in Europe. In Austria, it enables operators of wind, solar, biomass and hydropower plants to receive a guaranteed payment for the electricity they feed into the grid. This model encourages investment in renewable energies by providing producers with a secure source of income that is often higher than the market price for electricity.

The basic idea of the feed-in tariff is simple: producers who generate electricity from renewable sources receive a fixed price per kilowatt hour (kWh) for a certain period of time. This price is generally higher than the average market price in order to ensure that producers can make their investments economically viable. The level of remuneration varies depending on the technology and can differ depending on the location and size of the plant.

In Austria, the feed-in tariff is regulated by the Green Electricity Act, which is regularly adjusted to take account of changing market conditions and technological developments. The remuneration systems are designed to incentivise the development of new plants while taking existing infrastructure into account. There are also different remuneration models, such as the market premium, which allows producers to sell their electricity directly on the market and receive a premium in addition to the feed-in tariff.

The feed-in tariff has proven to be successful in increasing the share of renewable energies in the electricity mix in Austria. Austria is one of the European countries with the highest share of renewable energies, particularly through the utilisation of hydropower. The feed-in tariff has helped to reduce the cost of renewable technologies, which in turn has made these technologies more accessible to a wider public.

However, there are also challenges associated with feed-in tariffs. Excessive remuneration can lead to overloading of the electricity grid, especially during periods of high feed-in from decentralised generation plants. In addition, the costs of subsidising renewable energies must be passed on to electricity prices, which can lead to a financial burden for consumers. A continuous adjustment of feed-in tariffs is therefore necessary to ensure a balance between the promotion of renewable energies and the avoidance of market distortions.

At European level, feed-in tariffs are also important as they serve as a model to support the energy transition in many countries. The harmonisation of remuneration systems and the creation of a single market for renewable energy are crucial to facilitate the exchange of electricity between member states and promote a sustainable energy future.

To summarise, feed-in tariffs are a key element of the energy transition in Austria and Europe. It has played a key role in driving forward the expansion of renewable energies and reducing dependence on fossil fuels. As technology and market conditions continue to develop, feed-in tariffs will continue to play an important role in shaping the future of energy.