The flexibility premium is an important instrument for promoting flexibility in energy generation. In an energy market that is increasingly based on renewable energy sources such as wind and solar energy, it is becoming more and more important for electricity producers to be able to flexibly adapt their production capacities to actual demand. Renewable energies are naturally fluctuating, as they depend on weather conditions. The flexibility premium creates incentives for plant operators to adapt their generation to these fluctuations and thus help stabilise the electricity grid.

In Austria and many other European countries, the flexibility premium is mainly paid to operators of biogas plants. These plants have the advantage that, unlike wind or solar plants, they can ramp their production up or down relatively easily. The premium supports plant operators in making additional investments in technologies that enable this flexibility, such as storage systems or the switch to demand-based electricity generation.

The Austrian energy industry will benefit greatly from the introduction of the flexibility premium. Ensuring a flexible power supply is essential to maintain grid stability, especially in times of high feed-in of renewable energy or unexpected peak loads. In conjunction with other market-based mechanisms such as the balancing energy market, the flexibility premium creates an economic incentive that contributes to long-term security of supply.

In addition, the premium supports the expansion and integration of new, innovative technologies into the Austrian energy market. In addition to modern storage systems, this also includes intelligent control systems that make it possible to better harmonise energy generation and consumption in real time. This is particularly important in order to meet the challenges of decentralised energy generation, such as that created by photovoltaic systems and wind farms.

Another aim of the flexibility premium is to reduce the curtailment of renewable energies. Curtailment means that surplus electricity generated at peak times cannot be fed into the grid because demand is too low or the grid is overloaded. The premium allows plant operators to invest in technologies that enable them to store this electricity or reduce their production until demand increases again.

At European level, the flexibility premium is part of larger initiatives to improve grid flexibility and promote the integration of renewable energies. The European Union supports such mechanisms as part of its goal to continuously increase the share of renewable energies in the electricity mix while ensuring security of supply. In Austria, too, the premium strengthens the expansion of renewable energies without jeopardising grid stability.

To summarise, it can be said that the flexibility premium is a key building block for the future energy supply in Austria. It helps to increase the flexibility of electricity generation, promote investment in innovative technologies and at the same time ensure grid stability in an increasingly decentralised and renewable energy system.