AUSTRIA Trends and Developments Contributed by: Bernd Rajal, Maximilian Klein and Moritz Üblagger, Schönherr Rechtsanwälte GmbH
Large Battery Storage Systems Up and Coming Over the past 12 months, various battery storage projects were launched in Austria. Project devel - opers entered into preliminary grid connection agreements with grid operators. Developers also initiated administrative proceedings to obtain permits and authorisations for the construction and operation of battery storage systems. The Austrian legal framework for battery stor - age is rather fragmented. For instance, zoning requirements may differ from province to prov - ince. It is therefore necessary to check permit requirements for battery storage plants on a case-by-case basis against applicable local and regional legislation. According to the current draft of the Electricity Industry Act, battery storage systems fall under the definition of energy storage and therefore benefit from the statutory right to connect to the grid on a non-discriminatory basis. Renewable energy sources co-located battery storage systems are eligible to receive invest - ment grants under the Austrian Renewable Expansion Act. The government plans to extend these grants to stand-alone battery storage sys - tems. Green Public Procurement: Eco-Innovative Businesses as Contractors Eco-innovative businesses can gain a competi - tive advantage as public procurement increas - ingly focuses on sustainability. National laws require that the environmental compatibility of services be considered in procurement process - es, incorporating ecological or animal welfare aspects into service descriptions, specifications or award criteria. This shift offers opportunities
for eco-friendly companies to stand out in pro - curement processes. Legal requirements also mandate that contrac - tors with environmental violations be excluded from procurement procedures. Authorities may require proof of compliance with environmental management systems, encouraging businesses to adopt sustainable practices. Companies that meet these standards improve their eligibility for public contracts and strengthen their market position. The Austrian Federal Procurement Act does not set binding rules on how selection and award criteria should be defined, giving authorities flex - ibility. However, environmental protection criteria cannot provide unrestricted freedom of choice, as determined by ECJ case law. If environmental considerations are overlooked, businesses can challenge the tender documents, presenting both risks and opportunities. Power Purchase Agreements: Secure Long- Term Energy Costs and Gain Market Stability The energy market is increasingly characterised by volatility, resulting in significant price fluctua - tions. One effective way for businesses to miti - gate this volatility is through Power Purchase Agreements (PPAs), which are long-term elec - tricity supply contracts directly with electricity producers. Unlike traditional short-term supply contracts tied to market prices, PPAs provide price stability and can promote the expansion of renewable energy sources, particularly through “green PPAs” . The main benefit of PPAs is their ability to offer economic security by locking in fixed prices, making them especially attractive in times of market instability. However, businesses must also be aware of the potential risks, such as fixed
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