European Investment Bank supports hydropower expansion in Austria

Energie AG plans to invest a total of over €600 million in a new pumped storage power plant in Ebensee and a planned run-of-river hydropower plant in Roitham/Traunfall, Upper Austria.

The Ebensee pumped storage power plant will act as a green battery, compensating for fluctuations in the power generation from wind and solar plants and ensuring security of supply. Financing agreements for the Ebensee project were signed at EIB headquarters in Luxembourg, encompassing €320 million.

The Ebensee project is the single largest investment by Energie AG to date and is a milestone in the transformation of the energy supply in Upper Austria. An additional €80 million in financing for the Traunfall run-of-river power plant, intended to replace three hydropower plants at the end of their useful life, has also been given advance EIB approval. The relevant financing contracts are set to be signed in 2025, subject to the pending approval of the project by the supervisory board of Energie AG.

EIB VP, Thomas Östros, commented: “Rapidly expanding renewable energy is crucial for decarbonising the economy. The hydropower plants by Energie AG are an important step on the road to a climate-neutral energy supply and will reduce Europe’s dependence on oil and gas imports.”

Leonhard Schitter, Chair and CEO of Energie AG, added: “Our strategy at Energie AG has set a course for maximum carbon reduction throughout the company. All told, we will be investing €4 billion by 2035 to expand renewable energy and grids. We are also making major investments in green hydrogen production.”

Andreas Kolar, CFO of Energie AG, continued: “In the coming decades, the energy sector, including Energie AG, will be influenced by high investment requirements for the process of transformation needed to develop a sustainable energy system. A key factor in this process will be providing for future financing requirements early, with optimal borrowing and framework conditions.”

This project is part of the REPowerEU, the EU plan to rapidly reduce Europe’s dependence on fossil fuels. Thanks to REPowerEU, the EIB is able to finance a higher share of the total project costs than the usual 30-50%.

The investment also furthers the objectives of Austria’s National Energy and Climate Plan, which plans to convert all electricity generation to renewables by 2030.

 

 

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