This site uses cookies to enable and improve the user experience. Details about this and data protection can be found here.

Glossary
Mandatory direct marketing

Mandatory direct marketing is a central component of the energy transition in Austria. It promotes the integration of renewable energies into the market and strengthens the competitiveness of producers.

10/23/2024

Mandatory direct marketing is an important instrument in the context of the energy transition in Austria and the EU. It refers to the marketing of electricity from renewable energy sources (EEG) directly by producers instead of selling it via regulated tariffs. The aim of this regulation is to increase the share of renewable energies on the electricity market and at the same time promote the market integration of these sources.

In Austria, mandatory direct marketing is particularly important for operators of photovoltaic systems and wind power plants. This regulation enables producers to sell their electricity directly on the EPEX spot exchange, which often promises higher revenues than regulated feed-in tariffs. However, market prices fluctuate, meaning that direct marketing also entails risks. To mitigate these risks, operators can look to electricity traders or distribution companies, for example, who act on behalf of producers and help manage price fluctuations.

Another important aspect of mandatory direct marketing is the flexibility premium. This is granted to producers who are able to flexibly adapt their electricity production to market conditions. This flexibility is particularly important in times of overproduction or peak demand and supports grid stability. A good example of this is the ability to reduce the use of fossil fuel power plants to cover peak loads by adjusting production to demand.

Mandatory direct marketing is part of EU energy policy, which aims to liberalize the energy market and promote competition. In Austria, this system was introduced by the Green Electricity Act, which regulates the framework conditions for the feed-in and marketing of renewable electricity. Compliance with these legal requirements is crucial for the successful integration of renewable energies into the existing energy system.

A central aim of this regulation is to promote the market orientation of producers and give them a better understanding of market mechanisms. This will not only help producers, but also consumers, as they will benefit from a more stable and competitive electricity supply. In the long term, it is expected that mandatory direct marketing will lead to a reduction in the costs of renewable energies and thus also strengthen the competitiveness of the domestic economy.

The switch to mandatory direct marketing is not without its challenges. Smaller producers often do not have the resources or expertise to operate efficiently on the market. Information and advice services from associations and institutions can be helpful here to make it easier for producers to start direct marketing. Training courses on market dynamics and marketing strategies also play an important role.

Grid integration is also a key issue in the context of mandatory direct marketing. In order to better manage the volatile feed-in from renewable sources, it is necessary to expand and modernize the existing grid infrastructure. Smart grids and innovative storage technologies are key components that contribute to overcoming the challenge of direct marketing.

Overall, mandatory direct marketing is an important step towards a sustainable energy future in Austria and Europe. It supports the transformation of the energy market towards a more environmentally friendly and sustainable electricity supply. By strengthening producers and promoting flexibility and market orientation, dependence on fossil fuels is reduced, which makes a significant contribution to achieving climate targets.

Kategorien: