EU Grants Austria Subsidies Which Amounts 100 Mio. Euros.
The European Commission will grant Austria 100 million Euros as a measure for the reduction of power consumption approved under the framework for state aid in crises.
The EU Commission Grants Austria a 100 Mio. State Subsidy for Reduction of Energy Consumption / Picture: © Marina bauer, CC BY-SA 4.0 , via Wikimedia Commons
The EU Commission has approved Austria's state subsidy of 100 million euros. The Commission announced today in Brussels that this is the first measure to reduce peak electricity consumption that has been approved based on the framework for state aid in crises. With the aid of the subsidy, electricity consumption is to be shifted to hours when demand is low, thereby curbing prices, according to ORF.
According to Vienna.at, in December, the Austrian National Council passed a law for voluntary reductions in electricity consumption, which is aimed at large consumers such as industrial companies, and made 100 million euros available for this. The goal is to reduce consumption between 8 a.m. and 12 p.m. and between 5 p.m. and 7 p.m. by an average of at least five percent. The reason for this is that a lot of natural gas often has to be burned in the power plants during these hours to be able to cover the electricity requirements.
As reported by ORF, due to the energy crisis, private households are also required to shift electricity consumption to times when most of the electricity demand can be covered by renewable energies. According to Energate Messenger, The beneficiaries are obliged to estimate their electricity consumption. The funding measure also takes precautions against the overcompensation of the beneficiaries. For example, there should be a dynamic price cap for offers. A minimum number of participants should also apply to each tender.