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Glossary
Installed power

Installed capacity refers to the maximum possible electrical output of a power plant or energy system. In the European energy market, particularly in Austria, installed capacity is an important indicator of grid capacity and security of supply.

10/21/2024

The installed capacity of a power plant or energy generation system describes the maximum electrical output that this system can generate under optimal conditions. This term is of central importance for both conventional power plants and renewable energy plants such as wind and solar parks. In the European energy market, but also in Austria in particular, installed capacity is a key indicator of the capacity of the energy system and plays an important role in the planning and assessment of security of supply.

Installed capacity is expressed in megawatts (MW) or gigawatts (GW) and includes the capacity of both centralised power plants and decentralised energy sources, such as rooftop solar installations or wind turbines in rural areas. In practice, however, the plants rarely reach this maximum output, as various factors such as weather conditions, maintenance work or grid requirements influence the actual output.

Austria, a country that relies heavily on the use of renewable energies, has significantly increased its installed capacity in the wind and hydropower sector in recent years. The country has an installed capacity of around 27 GW, a significant proportion of which is accounted for by hydropower plants, which enjoy optimal conditions due to Austria's mountainous landscape. Wind power plants in flat regions and solar power plants are also playing an increasingly important role.

Particularly in the field of renewable energies, the installed capacity differs from the energy actually generated, as renewable energies are heavily dependent on external conditions such as sunshine or wind. In a European comparison, Austria is well placed in terms of installed capacity for renewable energies, but the challenge is to utilise this capacity reliably and evenly throughout the year. This is supported by technological developments such as energy storage systems and smart grids, which are able to compensate for fluctuations in energy production.

Another important aspect of installed capacity in the energy market is grid stability. The electrical power that is fed into the grid must always be in balance with demand. If too much or too little electricity is fed in, this can lead to voltage problems or even blackouts. The installed capacity of power plants and energy systems is therefore a key factor in the planning and control of the electricity supply. This is particularly true in times of transition to a more renewable energy-based system, as these sources are inherently less controllable than fossil fuels.

At European level, installed capacity is also a benchmark for the progress of the energy transition. Countries with a high proportion of installed capacity from renewable energies are regarded as pioneers of the energy transition. Austria plays an important role in this context, as the country obtains a significant proportion of its electrical energy from renewable sources, which is also reflected in its installed capacity. However, challenges remain, particularly in the area of grid integration and the creation of storage capacity to cope with the intermittent nature of solar and wind energy.

One example of the importance of installed capacity in Austria is the expansion of wind power projects in Burgenland, a region with optimal wind conditions. Numerous new wind turbines have been commissioned there in recent years, resulting in a steady increase in installed capacity in the wind energy sector. These projects not only contribute to increasing the installed capacity, but also to reducing greenhouse gas emissions and achieving the country's climate targets.

To summarise, it can be said that installed capacity is a key parameter for the performance and reliability of an energy system. In the European and Austrian context, it is a decisive factor in assessing progress in the field of renewable energies and the energy transition. While Austria already has a high installed capacity in renewable energies, optimising the system to utilise this capacity remains one of the biggest challenges in the coming years.

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