Austria: Austria may need more than $80 B (€68 B) in electricity grid investments by 2040, according to the International Energy Agency’s (IEA) Energy Policy Review Austria 2026. The report highlights rising costs driven by expanding renewable energy and increasing demand on the power system.
Austria already has one of the highest shares of renewable electricity consumption in the European Union, but this is also creating new pressures on the grid as generation and demand are unevenly distributed across the country.
The IEA points to a clear imbalance between eastern and western regions. The west hosts major pumped hydro storage facilities, while the east has higher solar potential and carries most of the electricity demand. This mismatch requires stronger transmission links to move power efficiently.
The report describes planned grid expansion under Austria’s Integrated Austrian Grid Infrastructure Plan (ÖNIP) as “no-regret” measures, meaning they are necessary under all future scenarios. It also estimates around $10.5 B (€9 B) in transmission investment is needed by 2034, with total grid needs reaching $52 B (€44.4 B) for transmission and $28.3 B (€24.2 B) for distribution by 2040.
Congestion in the system has led to rising redispatch costs, reaching about $166 M (€142 M) in 2023. These costs are passed on to consumers and reflect increasing pressure on the network as variable renewable energy grows.
The IEA also warns that electricity demand could nearly double by 2040, increasing the need for grid reinforcement, market reform and flexible solutions such as demand response and virtual power plants.
It further notes that grid fees already account for a significant share of household electricity bills, raising concerns about cost fairness and regional differences across Austria.
Source: Enlit
