Austria's regulator calls for ‘greater market responsibility' as PV boom reshapes energy systems
MUSCAT: Austria's top energy regulator has warned that the surge in solar photovoltaic (PV) installations, while vital to the energy transition, is straining electricity markets and grid infrastructure — calling for urgent reforms to ensure producers assume greater market responsibility.
Speaking at the 22nd Annual Conference of the Energy Regulators Regional Association (ERRA), held in Muscat, Harald Proidl, Director of Renewables and Energy Efficiency at Austria's E-Control, said the country's PV boom has reshaped both generation capacity and regulatory oversight.
'In Austria, PV is no longer a marginal player — it accounts for around 25% of total installed capacity,' Proidl told the gathering of regulators and policy experts. 'But this growth has come with challenges: oversupply, negative pricing and grid instability.'
Between 2020 and 2024, Austria tripled its PV installations from 150,000 to 500,000 systems, raising installed capacity from 2 GW to 8.4 GW. This was spurred by billions of euros in public subsidies, rising energy prices and concerns over energy security.
But Proidl warned that while subsidies have helped scale deployment, many PV owners do not face balancing obligations. 'They can export excess energy to the grid without taking on system responsibility,' he said. 'This is not sustainable.'
Austria recently raised network tariffs by 25% — partly due to PV-related costs — and is expanding energy-sharing models to decentralise consumption. 'We now have over 1,650 energy communities with 30,000 participants. We expect that to double by 2025,' Proidl noted.
Despite these innovations, only 30% of PV power is self-consumed in Austria. The rest is injected into the grid, often creating localised oversupply and price volatility. 'Ideally, 100% of PV electricity should be used where it is produced,' he added.
E-Control is urging policy shifts to reduce reliance on grid exports, expand incentives for local use; and apply smarter pricing and digital tools.
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