Austria Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The austria renewable energy market size is expected to grow from 27.66 gigawatt in 2025 to 28.95 gigawatt in 2026 and is forecast to reach 36.4 gigawatt by 2031 at 4.68% CAGR over 2026-2031. This report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Austria Renewable Energy Market Trends and Insights

Government-backed 100% Renewable-Electricity Target by 2030

Austria’s Renewable Energy Expansion Act mandates an extra 27 TWh, allocating 11 TWh to photovoltaics, 10 TWh to wind, 5 TWh to hydropower, and 1 TWh to biomass. Policy certainty unlocked a EUR 1.3 billion financing package for Burgenland Energie Group, illustrating how clear targets draw capital. ÖNIP allocates EUR 9 billion to transmission upgrades through 2034, easing bottlenecks. Timelines are tight; Austria became a net electricity importer in August 2024, underscoring the urgency of the situation.

Hydropower-anchored Grid Flexibility Enabling VRE Integration

More than 3,000 hydropower plants, totaling 14.1 GW, equip Austria with unmatched flexibility. Facilities such as the 430 MW Reisseck II pumped-storage plant help balance wind and solar variability, while the Kronstorf substation upgrade is expected to introduce a 220-kV loop by 2030. This agility enabled renewables to supply 87% of the electricity in 2023, far exceeding the EU average.

Grid Congestion and Lengthy Permitting Procedures

Redispatch volumes could sextuple by 2040 without coordination, the European Commission warns.Since 2018, the Germany-Austria congestion management system caps cross-border flows during peak periods. ÖNIP’s EUR 9 billion build-out will help, although completion is expected to stretch to 2034.

Other drivers and restraints analyzed in the detailed report include:

• Rapid LCOE Decline of Solar PV and Onshore Wind
• EU ETS and National CO₂ Pricing Raising Fossil-Fuel Costs
• Limited Land Availability for Utility-Scale Wind and Solar

Segment Analysis

Geothermal capacity is projected to grow at a 36.2% CAGR through 2031, the fastest rate of any technology in the Austria renewable energy market, as deep wells in Vienna and Graz move from exploration to construction. Hydropower retained 46.12% of Austria's renewable energy market share in 2025, anchoring frequency stability even as solar and wind energy expand. Pumped-storage additions, such as the 480 MW Limberg III project, demonstrate how legacy hydro assets are being repurposed for long-duration flexibility. Utility-scale solar added 1.5 GW in 2024 and now benefits from levelized costs below EUR 40 per MWh, while onshore wind added 400 MW, with capacity factors above 35% in Burgenland. Bioenergy supplied 1 TWh in 2024 but faces feedstock constraints, limiting further growth.

The Austrian renewable energy market size for geothermal heat alone could surpass 0.54 GWth by 2031 if current drilling schedules hold, providing urban district-heating operators with a baseload alternative to natural gas. Solar rooftops continue to scale under zero-VAT rules, while hybrid solar-plus-storage plants, such as Energie AG's 50 MW site, illustrate the shift toward firm renewable energy sources. Wind repowering is gaining momentum as operators replace older 2 MW turbines with 4-6 MW machines on the same pads, maximizing output from increasingly scarce land. Small hydropower remains capped by environmental rules, although digital turbine retrofits are lifting efficiency at run-of-river plants. Together, the diversified portfolio mitigates weather risk and keeps Austria on track to achieve its 100% renewable electricity target.

Complete Report Scope:

• By Technology
  • Solar Energy (PV and CSP)
  • Wind Energy (Onshore and Offshore)
  • Hydropower (Small, Large, PSH)
  • Bioenergy
  • Geothermal
  • Ocean Energy (Tidal and Wave)
• By End-User
  • Utilities
  • Commercial and Industrial
  • Residential

List of Companies Covered in this Report:

• Wien Energie GmbH
• Verbund AG
• EVN AG
• Energie AG Oberösterreich
• Engie SA
• Andritz AG
• Fronius International GmbH
• Vestas Austria GmbH
• Siemens Energy Austria GmbH
• Enercon GmbH
• OMV AG (Renewables & Geothermal)
• KELAG-Kärntner Elektrizitäts-AG
• Enery Development GmbH
• SolarFocus GmbH
• WEB Windenergie AG
• Heliovis AG
• Fresnex GmbH
• IQ-Energy Austria GmbH
• Austria Energy Group
• ContourGlobal Austria

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support