Renewable Energy in Austria

The EU is working to reduce the effects of climate change and establish a common energy policy. As part
of this policy, European Heads of State or Government agreed in March 2007 on binding targets to
increase the share of renewable energy. By 2020 renewable energy should account for 20% of the EU's
final energy consumption (8,5% in 2005). To meet this common target, each Member State needs to
increase its production and use of renewable energy in electricity, heating and cooling and transport.

Although renewable energies are an integral part of our fight against climate change, they also contribute
to growth, job creation and increase our energy security.

The renewables targets are calculated as the share of renewable consumption to gross final energy
consumption. Renewables consumption comprises the direct use of renewables (e.g. biofuels) plus the
part of electricity and heat that is produced from renewables (e.g. wind, hydro), while final energy
consumption is the energy that households, industry, services, agriculture and the transport sector use.
The denominator for the RES share includes also distribution losses for electricity and heat and the
consumption of these fuels in the process of producing electricity and heat.

Austrian target: 34% (2005 = 23.3%)

With a share of 70% RES-E of gross electricity consumption in 1997, Austria was the leading EU Member
State for many years. Large hydropower is the main source of RES-E in Austria. More recently, a steady
rise in the total energy demand has taken place, and a decrease of the share of RES-E has been noted. In
May 2006, the annual allocated budget for RES-E support was reduced, and annual tariff adjustments have
been implemented.