Austria caps spending on green power in updated renewables law

Freiburg (Platts)--28Nov2005

The Austrian government late Friday passed an updated version of its
renewables law, capping subsidies for green generation to Eur17-mil
($19.7-mil) each year to 2011, the economics ministry said.
     In the new version, Austria has laid out the aim to increase green power
generation--mainly solid biomass, biogas and wind--to 10% of total demand by
2010. The annual spend is to be split into wind power (30%), biomass (30%),
biogas (30%) and solar power (10%). Furthermore, the government is to give
Eur50-mil to the expansion of medium-sized hydro power plants until 2011.
     Two-thirds of governing parties were in favor of the law, with the Greens
party against it, arguing that limiting subsidies to Eur17-mil annually was
effectively a cut in subsidies, as Austria spent as much as Eur30-mil to
Eur40-mil on renewable generation in previous years.
     Environmental group Klimabundnis Osterreich said the new law would lead
to Austria missing its climate targets. It said the limit on solar power
plants to 15MW capacity was essentially a brake on all new projects.

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