Risk of a freeze on BESS investments in Austria. New regulations spark protests

Austria’s energy market regulator, E-Control, has adopted new regulations governing system usage charges. The new rules, which will take effect on January 1, 2027, aim to improve the utilization of existing transmission capacity, promote flexibility, and reduce the need for costly grid expansion (with expected savings of up to €300 million annually). However, the regulator’s decision has drawn sharp criticism from industry organizations.

Shift to a 50:50 model and dynamic tariffs

The new tariff structure introduces several significant changes for households, businesses, and investors. The key changes include:

• Shift toward capacity-based charges – over three years, the fee structure will transition from the current model, which is primarily based on energy consumption (approximately 90% variable costs), to a 50:50 model, in which capacity-based charges will account for half of the bill. These charges will be calculated based on the highest 15-minute power demand recorded during a given month. The aim is to encourage consumers to reduce peak demand. The transition period will last until mid-2028.
• Time-varying rates – new tariffs have been introduced to encourage electricity consumption during periods of low demand. The summer SNAP tariff applies from April to September, between 10:00 a.m. and 4:00 p.m., while the winter WiNAP tariff will take effect in October 2027 and cover nighttime hours (11:00 p.m. to 5:00 a.m.).
• Flexible grid connections and location-based incentives – consumers will be able to agree to temporary restrictions on electricity consumption imposed by grid operators (up to twice a day, for a maximum of two hours each time) in exchange for lower charges. Grid connection fees will also be revised to favor locations with available grid capacity.

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Energy storage industry sounds the alarm

Although the SNE-G-V regulation provides 10 options for reduced grid charges for battery energy storage systems, eligibility is subject to strict criteria regarding so-called grid-supportive operation.

Industry organizations, including PV&B Austria, Windkraft Österreich, the Austrian Energy Storage Association, and the EEÖ federation, have expressed deep disappointment with the final version of the regulation. Their main concerns include:

• Unequal treatment compared to pumped-storage hydropower plants – the industry is calling for BESS to receive the same preferential treatment in terms of taxes and fees as conventional hydropower storage facilities.
• Risk of investment delays – industry associations point out that grid usage charges represent the largest operating cost for stationary BESS facilities. An inadequate tariff structure could lead to the suspension or cancellation of numerous projects currently under development.
• Exclusion of industry experts – despite submitting more than 1,000 pages of feedback during the public consultation process, industry representatives accuse the regulator of excluding sector experts from the final stages of drafting the regulation.

E-Control maintains that reductions in grid charges must be conditional on demonstrated benefits to the electricity system. However, industry representatives argue that the proposed regulatory adjustments, expected in the coming years, may arrive too late to keep pace with the energy transition and the evolving needs of the power grid.