Accelerated procedures for renewables in Austria: a signal for market entry?

With the completion of the public consultation process (Begutachtungsprozess) for the new Austrian Renewable Energy Expansion Acceleration Act (Erneuerbaren-Ausbau-Gesetz, EABG), the market is eagerly awaiting the parliament's decision. At the same time, the topic of the "energy transition" is gaining additional momentum: In December 2025, the Austrian legislator passed the new Austrian Electricity Industry Act (ElWG) – a comprehensive reform that reorganizes the domestic electricity market. Numerous expert articles have already addressed the potential boost that the EABG and the ElWG could bring to the renewable energy transition in Austria. Both acts combined create a strong double impulse: On the one hand, the EABG accelerates the approval process for renewable energy projects, and on the other hand, the ElWG provides a modern regulatory framework.

But what is the economic impact for renewable project approvals in Austria? What opportunities are now opening up for project developers, electricity producers, and investors in the market?

What is the purpose of the EABG? In a nutshell.

The EABG is intended to accelerate the expansion of renewable energy generation facilities and the associated infrastructure in Austria. It implements key provisions of the EU RED III Directive (EU/2023/2413), which aims to increase the share of renewable energies in the EU's gross final energy consumption to at least 42.5% by 2030. In addition to shortened approval periods, the directive provides for the designation of so-called "acceleration areas" for renewable energy projects such as wind power or photovoltaic plants, as well as the establishment of an "overriding public interest" for renewable energy projects in the approval process. The Austrian draft of the EABG takes up these requirements and aims to speed up procedures through a concentrated approval process (one-stop shop), structured types of procedures, and digital announcements.

To the draft law
For the explanatory notes

However, the EABG draft also has weaknesses: For instance, there is no specific enforcement regime for federal states that fail to meet the planned generation targets. There is therefore still no pressure on the federal states to designate sufficient acceleration areas. Another point of criticism concerns the new screening procedure, which provides for a preliminary review to determine whether environmental or nature impact assessments can be waived in a specific area. The criteria for this preliminary review are still unclear, and this legal uncertainty could potentially lead to a (too) thorough review practices on the part of the authorities.

Interim conclusion: Project developers, who are able to secure projects in acceleration areas, can hope for (i) greater planning security and (ii) faster procedures. However, if the legislator does not address the identified need for improvement, a number of starting problems may likely arise. In particular, the question arises as to how quickly the federal states will designate acceleration areas and how the authorities will respond to legal uncertainties in preliminary assessments.

Why is accelerating the process so important?

Austria's ambitions go beyond the EU target of covering 42.5% of the annual gross final energy consumption from renewable sources by 2030: By 2030, the country aims to cover its entire electricity consumption from renewable sources. In order to achieve the required 27 TWh expansion in generation capacity, as forecasted in 2021 with the enactment of the Energy Expansion Act (Erneuerbaren-Ausbau-Gesetz) back then, the implementation of major and numerous projects will be necessary. This demand offers opportunities for project developers, electricity producers, and investors. Grid expansion, including the implementation of energy storage projects, will be a major focus of the Austrian energy landscape in the coming years, both in terms of expansion of capacity and flexibility services. It is undisputed that large investments are necessary to achieve these goals.

For project developers, electricity producers, and investors, this results in an increasingly interesting market, also due to the prospect of the EABG.

Why is the EABG particularly interesting?

One uncertainty that is always associated with energy projects is their feasibility under public law. Depending on the planned capacities, the type of generation, and the location, approvals must be obtained not only under electricity and trade law, but usually e.g. also under environmental law, nature conservation law, and/or water law, any one of which can prove to be a showstopper. It is not without reason that ready-to-build projects, for which the relevant public law approvals have already been obtained, have established themselves as a marketable product for project developers, electricity producers, and investors. The EABG is in a position to create simplifications that will likely increase the number of available projects and are particularly interesting for companies that have not yet entered the Austrian market, for example due to regulatory hurdles. Those who secure an acceleration area can expect considerable simplifications (in particular, the elimination of the environmental impact assessment) in the approval process.

More on procedural law: News | Faster energy transition through simplified procedures?

Why is the ElWG, in addition to the EABG, essential for the economic viability of renewable energy projects?

While the EABG primarily accelerates the approval process and thus paves the way for faster expansion of renewable energy generation in Austria, the Electricity Industry Act (ElWG) creates the regulatory basis for a stable and predictable electricity market. For project developers and investors, this means that only the combination of both laws enables reliable project planning and long-term economic viability.

The ElWG introduces key innovations such as a modern grid access regime and a cap on grid cost contributions for producers in the form of a limited infrastructure levy (Section 75a ElWG) from 2027 onwards. This replaces a main part of the grid costs with a maximum amount of 0.05 Cent per kWh fed into the grid, thus enabling project developers, electricity producers, and investors to plan their costs more reliably.

These elements are crucial for making the cost structure of projects predictable and enabling new business models, for example in the area of flexibility services or peer-to-peer electricity trading. Without this foundation, accelerating approvals remains an isolated step that does not guarantee economic viability.

In short, the EABG opens the door, while the ElWG ensures that entry is worthwhile.

Timely market entry and positioning

In order to benefit from the expansion of renewables in Austria, companies should consider their positioning in Austria at an early stage, which can be structured differently depending on their commercial orientation:

• Greenfield: Independent project development in Austria allows maximum freedom of design, but is associated with development risks, as know-how regarding local conditions (approval procedures, securing property rights, professionals, etc.) must first be acquired.
• Brownfield (M&A): The acquisition of ready-to-build or already operational projects through a company purchase agreement (asset deal) or purchase of the project company itself (share deal) enables faster market entry and, if necessary, the acquisition of know-how, but must be carefully examined for risks as part of due diligence.
• Joint venture: A compromise solution is to collaborate with an established project developer in a joint venture. The advantage lies in particular in the existing know-how and the associated efficiency (speed to market); however, depending on the structure of the joint venture, shared control must be taken into account.

Conclusion: The market for renewable energy projects will experience an upswing in the coming years, even if the overall economic situation weakens. Austria's ambitious expansion targets not only offer opportunities for local, already established project developers, power producers, and investors, but also, in our opinion, room for new market participants. Timely market entry and positioning in the Austrian market are essential in order to participate in and benefit from this growth.

Are you looking to implement energy projects or invest in the expansion of renewable energies? The CMS Energy team will be happy to provide you with comprehensive advice on everything from market entry to the implementation and marketing of your projects.