Austria must improve the costs associated with power transition.

The head of system development at APG, Christian Todem, stated at the Austrian Energy Day conference in Vienna that updating Austria's electricity grid for the energy transition will nearly cost €60 billion ($70 billion), urging the country to "optimise" its spending.

APG estimates that about €44 billion is needed for the distribution grid and approximately €15 billion for the transmission grid. The company plans to invest €9 billion in expanding the grid by 2034.

Todem emphasized that maximizing returns on investment in energy infrastructure should be a priority, noting that recent government plans to reduce the number of distribution system operators may not yield significant savings. He highlighted the importance of better synchronizing grid and renewable expansion and enhancing coordination between political and grid stakeholders, as current developments in the power market are complicating grid management and affecting the controllability of solar and wind energy. He also criticized the slow progress of key grid expansion projects.

Sven Kaiser, deputy director of electricity at E-Control, echoed these concerns, criticizing the lengthy process of obtaining construction permits from authorities. He argued that these bureaucratic hurdles are inadequate and could hinder Austria's ability to meet its energy and climate goals, negatively affecting economic development.

On Tuesday, the Austrian government initiated a consultation period for its draft renewable energy expansion act (EABG), aiming to speed up project approval processes, though it received mixed feedback from industry stakeholders.