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Verbund AG,[2] formerly known as Verbundgesellschaft or Österreichische Elektrizitätswirtschafts-AG, is Austria's largest[3] electricity provider. Verbund covers around 40 percent of electricity demands in Austria and generates 90 percent thereof from hydro power. In addition, Verbund operates the supraregional power grid through its subsidiary APG. Verbund AG is listed on the Vienna Stock Exchange and in the Austrian Traded Index, the key index of Austrian stock-listed companies. The largest shareholder, at 51%, is the Republic of Austria.[4]

Key Information

History

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1947 saw the establishment of Verbund as "Österreichische Elektrizitätswirtschafts-AG" through the second nationalization act. In the post-war years, the company's most urgent task was the planning, construction and operation of large power plants as well as the operation of the supraregional power grid. At the same time, special purpose vehicles (SPVs) were established to promote the construction of large hydropower and thermal power plants. The shares of the Republic of Austria in these special purpose vehicles were held by Verbund as a trustee. In 1955 it was once more possible to meet electricity requirements entirely using own domestic resources. However, as a result of the rapid economic growth, additional electricity had to be imported from 1965 on.

Initially, Verbund - pursuant to prevailing legal principles - was one hundred percent nationalized. In mid-1987, the second nationalization act was amended to the extent that Verbund could be partially privatized, as long as 51 percent remained in government hands. At the same time, Verbund acquired the shares of the Republic of Austria in the special purpose vehicles (Österreichische Donaukraftwerke AG, Österreichische Draukraftwerke AG, Tauernkraftwerke AG, Verbundkraft Elektrizitätswerke GmbH, Ennskraftwerke AG, Donaukraftwerk Jochenstein AG and Österreichisch-Bayerische Kraftwerke AG). In 1988, Verbund was partially deregulated by going public, at which point 49% of the shares were sold.

The most significant break in Verbund's history occurred in 1995 – this was the year that Austria entered the European Union, which, one year later, launched the deregulation of the electricity market. In order to better prepare for this complete opening, Verbund concentrated on the core business of electricity and restructured the Group, a result of which was that the activities were consolidated in a strategic holding company with the business divisions of generation, trade, transmission and equity interests. EU regulations required unbundling of generation and transmission of power as stipulated by company law. At the same time, the company promoted its international activities, beginning with Germany in 1999. Also, by 2003, more than half of the personnel had been let go without notice.

In the 1990s, Austria's energy industry became the setting for a large number of mutual participating interests; thus, for example, the provincial energy providers TIWAG (Tyrol) and EVN (Lower Austria), as well as the Wiener Stadtwerke [de] (including energy provider WienEnergie [de]) increasingly acquired shares in Verbund. Currently these three companies, the majority share of each of which is also in public hands, own more than 25%. Verbund itself participated in EVN in form of a joint venture, however, discontinued this share package in 2003. Important participating interests in Austria today are Kelag [de] (Kärntner Elektrizitäts-Aktiengesellschaft) and STEWEAG-STEG GmbH [de].

In order to finance the restructuring and expansion of the Verbund Group, eight Austrian Danube power plants, among others, were leased in the period from 1997 to 2000 as part of a cross-border leasing agreement with an American financial company and leased back without property transfer. In 2009, the backtransaction of virtually all leasing transactions was decided and, for the major part, implemented that same year.

In mid-2005, Verbund established the business division of Sales and became active in Austria's end customer market selling electricity. Within but a few years, the company had advanced to the fifth largest end customer provider in Austria. In 2007, Verbund expanded its activities to include additional renewable energy sources and began to undertake large investments in especially wind power. In mid-2009, Verbund acquired a power plant chain on the Bavarian river Inn from energy company E.ON and, hence, advanced to fourth largest hydropower producer in Europe.

Infrastructure

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Austrian Power Grid AG, a 100% subsidiary of Verbund AG, disposes of the largest and strongest high-voltage grid in Austria comprising the voltage levels 380 kV with the 380 kV high-voltage ring, as well as the 220 kV and 110 kV levels and several grid facilities. Moreover, Austrian Power Grid AG (APG) is responsible for the technical management of control area APG, which includes all Austrian federal provinces except Vorarlberg; although there are specific plans of transferring the operation of the grid in Vorarlberg to Verbund.

With a transmission route length of 3,471 km and the corresponding transmission lines measuring a total length of 6,763 km, APG's transmission grid forms the backbone for Austrian electricity supply, guaranteeing the energy exchange between suppliers and consumers both at supraregional level throughout Austria and at international level and safeguarding the regular feeding of the distribution grids. Austrian Power Grid AG is de-concentrated from the Group in the sense of EU unbundling regulations.

Currently (2010) the APG high voltage grid measures as follows:

Voltage [kV] Length of transmission lines [km] System length [km]
380 1,104 2,218
220 1,661 3,313
110 706 1,232

Business segments

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Hydropower

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Close to 90% of Verbund energy in Austria originates from hydropower. Verbund operates 20 storage power plants and 88 run-of-river plants in Austria; these plants are located in the alpine regions of Salzburg, Tyrol, Carinthia and Styria, as well as along all major rivers such as the Inn, Danube, Enns and Drau rivers. Verbund's total installed capacity in hydropower plants is 6,600 megawatt; average annual generation is 24.8 billion kWh altogether. In mid-2009, as a result of Verbund's acquisition of 13 run-of-river plants on the river Inn in Bavaria, Germany, power generation rose by 7%; together, the Bavarian Inn power plants have a peak capacity of 312 megawatt and an annual generation of 1.85 billion kW hours.

Thermal power

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Verbund is also one of the largest producers of electricity in the area of thermal power, as well as one of the largest district heating providers in Austria. Annual generation amounts to approx. 4 billion kWh of electricity and 900 million kWh of heat. Three of altogether nine Verbund thermal power plants - with and without combined heat and power/cogeneration - are currently in operation: Dürnrohr, Mellach und Neudorf-Werndorf II. Together, they have an installed capacity of 815 megawatt. Currently, a new combined cycle gas turbine power plant is being erected at Mellach, scheduled for completion by 2011, with an electrical peak capacity of 832 megawatt and a thermal peak capacity of 250 megawatt. The annual output will be approx. 5 billion kWh of electricity and 800 million kWh of district heating.

Wind power

[edit]

Since 2009, Verbund has been operating three wind farms in Austria, in Bruck an der Leitha, Hollern and Petronell-Carnuntum, with a total installed capacity of 49 MW. Further wind farms are planned or in construction in Bulgaria and Romania. In Spain, Verbund operates two photovoltaic plants.

Carbon intensity

[edit]
See also: List of European power companies by carbon intensity
Year Production (TWh) Emission (Gt CO2) kg CO2/MWh
2002 35 3.65 105
2003 28 5 178
2004 30 4.44 149
2005 29 3.81 131
2006 28 3.7 132
2007 28 3.41 120
2008 29 2.89 101
2009 30 2.21 74

Group structure

[edit]

Business divisions and ratios

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Verbund has business relations in more than 20 countries, as well as 13 offices and/or equity interests throughout Europe and one in Turkey. In fiscal 2008, Verbund recorded the best result of its history so far: with around 2,500 employees, the company achieved a turnover of more than 3.7 billion Euro, an EBIT of more than 1.1 billion Euro and a group result of just under 686 million Euro.

Shareholder structure

[edit]
  • 51% Republic of Austria
  • > 25% Syndicate of EVN and Wiener Stadtwerke
  • > 5% TIWAG (regional energy supplier of the state of Tyrol)
  • < 20% free float

Trading

[edit]

Within the Verbund Group, electricity trading constitutes the interface between generation, sales and wholesale market. More than half of the power sales are executed abroad, outside Austria. Verbund is active in more than 20 countries, the largest sales markets being Germany, France and Italy. Trade is conducted on all major European stock exchanges. Moreover, utilities and industrial large customers are supplied with energy; green energy and CO2 certificates are traded.

Sales

[edit]

Effective July 2005, Verbund has been active in the area of direct power sales on the deregulated Austrian market. In addition to household and commercial customers, Verbund has also been supplying the Austrian industry since the beginning of 2006 with energy (market share of 25%). By the end of 2009, Verbund had been supplying some 220,000 end customers with electricity, which makes Verbund the fifth largest end customer provider in Austria.

Participating/equity interests

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Verbund is actively involved in the major electricity markets of Europe and Turkey, mainly in connection with local partners. In Italy, Verbund has a 44.8 percent share in the power company Sorgenia, which was founded as a joint venture with the CIR Group in 1999 under the name of Energia. In France, Verbund holds a 44.8 percent share in energy provider Poweo, founded in 2004. In Turkey, Verbund has had a 50 percent share in energy provider EnerjiSA since 2007, established in 1996 by Sabanci Holding, which holds the remaining 50 percent. Since 2008, all of Verbund's foreign equity interests and projects are bundled in Verbund-International GmbH. Verbund's domestic interests, as in KELAG, for example, are administered by the Group Holding company.

Subsidiaries

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Verbund AG has a majority share in Verbund Hydro Power AG (80,34%), as well as in Verbund Thermal Power GmbH & Co KG (55,66%). Various subsidiaries are wholly owned; this includes Austrian Power Grid AG, Verbund Trading AG, Verbund Sales GmbH, Verbund International GmbH, Verbund Management Service GmbH, Verbund Telekom GmbH and Verbund Renewable Power GmbH.

Other information

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Since 2004, Verbund has had its own art collection, "Sammlung Verbund", consisting of contemporary international artworks from 1970 until today. In 2009, Verbund, together with Caritas Austria, launched an electric assistance fund, which is fed with 1 Euro per private customer per year. This fund is intended to support people with below-average incomes by way of interim financial assistance, as well as energy consultations. The Verbund subsidiary VERBUND-Tourismus GmbH is the Group's "advertising agency", promoting its power plants as well as the adjacent areas (Kaprun, Maltatal, Zillertal) as attractive destinations for excursions.

Green and sustainability notes

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On 1 April 2021, Verbund came to market with EUR 500 million in 20-year 'green and sustainability-linked notes' (often colloqusalised: 'green sustainability linkers'), a synthesis of a green and sustainability-linked bond and one of few in the market.[5] The expectation is that this structure allows investors to target funding towards environmentally-friendly projects while incentivising issuers to ensure institution-level sustainability alignment.[6] Some researchers have argued that, when sufficiently calibrated, green sustainability linkers can be a gold standard in green debt architecture, credibly tethering issuers to a science-aligned transition path.[7]

References

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[edit]
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Verbund

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from Grokipedia
Verbund AG is 's leading and one of Europe's largest producers of from , focusing on , transmission, trading, and distribution primarily from renewable sources such as , , and solar. Founded in 1947 as Österreichische Elektrizitätswirtschafts-AG under 's efforts to address postwar shortages, the company has evolved into a key player in , generating close to 100% of its electricity from renewables. Verbund operates extensive hydroelectric infrastructure across and maintains international activities in trading and renewable projects, contributing to Europe's while ensuring reliable supply through grid operations. Notable for its strategic emphasis on clean futures, the firm has achieved high efficiency in utilization and expanded into battery storage and , positioning it as a model for low-carbon production amid global decarbonization efforts.

History

Founding and Early Years (1947–1980s)

Verbund, originally established as Österreichische Elektrizitätswirtschafts-AG on January 1, 1947, emerged from Austria's Second , which consolidated fragmented private electricity enterprises into a state-owned entity to address post-World War II reconstruction needs. This nationalization targeted the electricity sector specifically, aiming to centralize , transmission, and distribution amid surging demand driven by industrial recovery and efforts. The company, often referred to as Verbundgesellschaft, focused on leveraging Austria's alpine topography for , which constituted the backbone of its early strategy, while coordinating regional utilities across seven of the country's nine provinces. In the , Verbund prioritized major infrastructure to meet rapidly growing electricity needs, with the plant entering operation in 1951 at 360 MW capacity, marking a pivotal step in harnessing the River's potential. Subsequent projects included the Ybbs-Persenbeug facility commissioned in 1959 with 480 MW output, supported by international financing such as World Bank loans for hydroelectric expansions. These developments enabled Verbund to expand its transmission network, initiating a high-voltage grid that by the 1960s began integrating 220 kV lines to enhance reliability and interconnect regional systems, amid challenges like coordinating nationalized assets and funding post-war investments. Through the 1970s and into the 1980s, Verbund continued scaling capacity and upgrading infrastructure, achieving a 380/220 kV backbone grid that bolstered national supply security and facilitated exports to neighboring countries. By this period, the company had solidified its role as Austria's primary wholesaler, generating the majority of its output from renewable hydro sources while navigating economic pressures and the push for complements to hydro variability. This era laid the foundation for Verbund's dominance in Austrian , emphasizing efficient resource utilization over dispersed private operations.

Expansion and Privatization Era (1990s–2000s)

In the , Verbund AG navigated the transition toward a liberalized European , anticipating directives on and unbundling. By the late decade, the company restructured its operations to separate from transmission activities, aligning with forthcoming regulatory requirements for network neutrality and . This internal reorganization positioned Verbund to maintain its dominance in Austrian while preparing for increased cross-border trade. The full of 's sector in dismantled monopolistic structures, enabling third-party access to grids and fostering among generators and suppliers. Verbund responded by bolstering its commercial operations; in May 2000, it launched Energie Austria as a dedicated trading entity to consolidate sales and pursue expansion in European wholesale markets, targeting a leading position amid rising price volatility and integration with neighboring systems. To fund enhancements, Verbund executed cross-border leasing deals from 1999 to 2001, involving assets like eight hydropower plants, which generated capital for modernization without diluting the state's controlling 51% stake established post-1988 IPO. Entering the 2000s, Verbund accelerated international outreach, leveraging its expertise amid EU enlargement. By the mid-decade, it had cultivated operations in over 20 countries, including 13 subsidiaries focused on trading, generation participations, and project development in , , , and —strategic moves to diversify beyond domestic reliance and capitalize on regional demand growth. These efforts coincided with no significant further divestitures, preserving public trading of the 49% free float while emphasizing organic and acquisitive growth in renewables and cross-border assets.

Modern Developments and Energy Transition (2010s–Present)

During the 2010s, VERBUND continued its diversification into non-hydro renewables, with significant investments in onshore wind power initiated earlier in the decade. By 2011, the company operated three wind farms in Austria totaling 49 MW capacity, with extensions planned to approximately double output in the near term. Wind generation volumes grew steadily, reaching 924 GWh annually by the late 2010s, reflecting operational expansions amid Austria's push for renewable integration. These efforts aligned with national targets under Austria's National Renewable Energy Action Plan, which emphasized higher investments in renewables despite elevated upfront costs compared to conventional sources. Entering the 2020s, VERBUND formalized its ambitions through the VERBUND 2030, targeting over 95% renewable by 2030 via €10 billion in investments across renewables and grid infrastructure. The strategy's five pillars prioritize efficiency, and solar expansion, and storage to balance intermittent sources, positioning hydropower—VERBUND's core asset with over 130 plants—as the backbone for a carbon-neutral system by 2040 and net-zero emissions by 2050. In October 2024, VERBUND published its Climate Transition Plan, outlining measurable actions to reduce greenhouse gases, including modernization of existing hydro assets and deployment of new technologies like battery storage. Key projects underscored this shift: In 2025, VERBUND partnered with Fluence Energy for two battery storage facilities in Germany totaling 92 MW power and 186 MWh capacity, advancing toward a 1 GW storage target by 2030 to support grid stability amid rising renewables. Solar initiatives included a 15.44 MWp park at Holcim Austria's Mannersdorf cement plant, commissioned to provide on-site renewable power. Internationally, VERBUND acquired 70% stakes in four Spanish wind farms and one photovoltaic plant totaling 171 MW capacity, enhancing its pan-European footprint. A €5.9 billion capital expenditure program focused on wind, solar, and grid upgrades, complemented by a proposed €100 billion national investment framework for clean generation, transmission, and storage to address Austria's energy security. These developments sustained strong financial performance, with group earnings reaching €1.9 billion in 2024, funding further transition efforts.

Operations and Infrastructure

Power Generation Assets

Verbund AG's power generation assets are dominated by , which accounts for the majority of its installed capacity and output, supplemented by , , and smaller solar installations. As of December 31, 2024, the company's total capacity stands at 8,468 MW, enabling it to produce a significant portion of Austria's renewable through a network of over 130 plants, including pumped-storage facilities in the and run-of-river plants along major waterways like the . These assets leverage Austria's for efficient storage and , with pumped-storage systems allowing energy to be stored during low-demand periods and released during peaks. Notable hydropower facilities include the Limberg III underground pumped-storage plant in , which added 480 MW upon its official opening on September 22, 2025, following construction that began in 2021; this facility enhances grid flexibility amid variable renewable inputs. The Malta-Reisseck hydropower group, expanded and commissioned on June 3, 2025, now delivers 1,540 MW in turbine capacity and 1,100 MW in pumping capacity, sufficient to store energy equivalent to several hours of . Other key sites, such as the Freudenau run-of-river plant on the in , contribute to baseload production with high efficiency rates typical of modern hydro installations. Plans for further expansion include the proposed Schaufelberg underground pumped-storage plant in , targeting 480 MW to bolster storage amid Europe's . Wind power assets provide 874 MW of capacity as of December 31, 2024, distributed across , , , and other markets, with operational farms like the 226 MW installation in supporting regional diversification. Thermal generation, operated via VERBUND Thermal Power GmbH & Co KG, adds flexibility with approximately 1,013 MW, primarily from gas-fired plants such as the Mellach combined-cycle facility in , which has an 832 MW electrical capacity and serves as a for renewable . Solar photovoltaic capacity remains modest within the portfolio, integrated into broader renewable that reached 9,288 MW combined for hydro, , and PV by the end of the reporting period in the 2024 annual review. These assets collectively position Verbund as a low-carbon generator, with hydropower's high capacity factors driving empirical reliability over intermittent alternatives.

Grid and Transmission Network

Verbund AG wholly owns Austrian Power Grid AG (APG), Austria's independent transmission system operator responsible for the country's supra-regional high-voltage grid. APG maintains and operates this network to ensure secure electricity supply, balancing generation and consumption while enabling cross-border exchanges within the European interconnected system. The grid serves as the backbone for Austria's energy infrastructure, transporting power from major generation sites, primarily hydropower in the Alps, to consumption centers and export points. The transmission network spans approximately 3,500 kilometers in route length, encompassing around 7,000 kilometers of power lines across voltage levels of 380 kV, 220 kV, and 110 kV. It includes 67 substations that step down voltages for regional distribution and support grid stability through reactive power management and advanced control systems. Interconnections with grids in , , , , , , and the allow for import/export capacities exceeding 10 GW, facilitating market integration and reserve sharing under ENTSO-E frameworks. APG continuously monitors and adapts the system to handle variable renewable inputs, achieving a of supply reliability of 99.99%. Ongoing expansions address capacity constraints from and renewables growth, with APG planning €9 billion in investments through 2034 for reinforcements and new lines. Key projects include the 380 kV Salzburg line, set for initial operation in 2025 to enhance north-south transfer capabilities, and recent completions like the 22.3 km upgrades in the region finalized in May 2024. These efforts prioritize minimal visual and environmental impact via underground cabling where feasible, while integrating technologies like dynamic line rating for optimized utilization. In 2024, APG reported revenues of €1.27 billion, reflecting grid usage fees and ancillary services.

International Infrastructure

Verbund's international infrastructure encompasses generation and storage assets primarily in , , and , with emerging involvement in in . These facilities support the 's diversification beyond its Austrian core, focusing on , solar photovoltaic (PV), battery storage, and pumped storage projects to enhance cross-border and renewable integration. In , Verbund operates hydropower infrastructure acquired from in 2012, including eight plants along the and rivers, bolstering its annual production and establishing it as Germany's second-largest producer with a combined portfolio of over 130 plants across and . The company has also invested in grid-stabilizing battery storage, with 110 MW/130 MWh already operational at over a dozen sites; in July 2025, Verbund partnered with Fluence Energy to develop additional systems totaling 92 MW/186 MWh, including a 50 MW/100 MWh facility in Weißenthurm-Kettig, . Further expansion includes the approved Riedl pumped storage project in , part of a €1.7 billion investment commitment by 2030. Spain hosts Verbund Green Power Iberia's operations, with approximately 630 MW of operational renewable capacity as of 2024, dominated by solar PV. Key assets include the 147 MWp Illora plant in , acquired in 2021, and a 50 MW facility in commissioned in 2024, generating about 100 GWh annually to supply roughly 30,000 households. Additional acquisitions encompass 82 MWp of operational PV from Qualitas Energy, supporting a broader 4,500 MW development platform. Verbund is collaborating with Capital Energy on pumped storage hydroelectric developments, following a 2022 agreement for 171 MW of and solar projects. In , Verbund entered via Verbund Green Power Italia in December 2022, acquiring a of up to 45 greenfield solar PV projects totaling 250 MWp in , incorporating agri-PV schemes across 300 hectares. Expansion continued in July 2024 with a 110 MWp portfolio near from KE-RENINVESTMENT S.A., comprising two advanced-stage projects. Verbund's non-European infrastructure includes a May 2024 partnership with TE H2 for a large-scale production project in , leveraging solar resources and connecting to the European market via the SoutH2 Corridor hydrogen pipeline to . These initiatives collectively represent over 1 GW of international renewable capacity outside , emphasizing scalable, low-carbon infrastructure amid Europe's energy transition.

Business Segments

Hydropower Operations

Verbund's operations, primarily managed through its subsidiary VERBUND Hydro Power , form the cornerstone of the company's , with over 130 plants across and boasting a total installed capacity of approximately 8,500 MW. These facilities produce more than 30,000 GWh annually, constituting roughly 80% of Verbund's overall 10.5 GW installed capacity and over 90% of its output. The operations leverage Austria's alpine topography and river systems for efficient, dispatchable , enabling Verbund to supply around 40% of Austria's domestic demand through hydro sources. The portfolio encompasses two main types: pumped storage hydropower in the Austrian for and peak shaving, and run-of-river plants along major waterways like the , , and rivers for baseload generation. Pumped storage assets, such as those in the and valleys, allow for flexibility by pumping water uphill during low-demand periods and generating during peaks, with the Malta-Reisseck group expanded in June 2025 to exceed 1,500 MW in capacity and support grid stability equivalent to six large run-of-river plants. Run-of-river facilities, numbering over 100 in alone, capitalize on consistent river flows but remain sensitive to hydrological variations, as evidenced by a 4,891 GWh drop in first-half 2025 generation due to below-average precipitation. Key recent developments underscore ongoing modernization and expansion efforts. The Limberg III pumped storage plant in the valley, with 480 MW capacity and partial converter technology for variable speed operation, was commissioned on September 22, 2025, enhancing storage amid rising intermittent renewables integration. Similarly, the Stegenwald run-of-river plant on the , operational from mid-2025, generates renewable power for approximately 20,000 households, substituting 73 GWh of fossil fuel-based electricity annually while incorporating ecological riverbed redesign. These projects align with plans to increase hydro capacity by nearly 19% by 2030 via repowering and new builds, prioritizing efficiency gains over large-scale greenfield developments constrained by environmental regulations. Operations also extend internationally through consulting services for project optimization.

Thermal and Gas Power

Verbund's thermal and gas power operations primarily consist of the Mellach combined-cycle gas turbine (CCGT) plant, which serves as a flexible complement to the company's dominant generation for grid stability and support. Located in Neudorf ob Wildon, , the facility was commissioned on June 22, 2012, replacing five older thermal plants, including a 246 MW subcritical unit decommissioned in 2020. The plant features two gas turbines and achieves high efficiency, generating approximately 838 MW of electrical capacity and up to 400 MW of thermal output for , sufficient to supply around 1.4 million households with . In , the Mellach produced 1,297 GWh of , contributing to Verbund's total thermal of about 1,300 GWh, which represents roughly 4% of the company's overall output amid a focus on renewables. This supports grid flexibility, including congestion , with output rising 92% year-over-year due to favorable market conditions like clean spark spreads. The 's design enables co- of and power, reducing emissions compared to predecessors by an estimated 2 million tonnes of CO2 annually through superior . Verbund has pursued decarbonization of its thermal assets, conducting hydrogen co-firing trials at Mellach since , including a test demonstrating readiness for up to 50% hydrogen substitution in the gas turbines. These efforts align with broader strategy to convert gas infrastructure for use, positioning the plant as an enabler for while maintaining dispatchable capacity amid variable renewables. Prior international gas assets, such as French CCGT plants, were divested in 2014 to optimize the portfolio toward domestic operations.

Wind and Emerging Renewables

Verbund operates facilities primarily as a complement to its dominant portfolio, with installed capacity in totaling 421 MW across 153 turbines as of recent assessments. These assets contribute to diversified renewable generation, though output remains variable and subject to meteorological conditions, generating approximately 7 GWh in during 2024. The company has pursued expansion in domestic through repowering and new installations, aiming to significantly increase capacity over the subsequent decade to enhance grid flexibility amid rising intermittent renewable integration. Internationally, Verbund has aggressively grown its portfolio to access favorable regimes and regulatory incentives outside Austria's constrained terrain. In , it acquired 257 MW of operational capacity from EDP Renewables in July 2023 for approximately €0.46 billion, comprising nine farms. This was supplemented by a 28 MW commissioned in 2024, contributing to 439 GWh of and PV production in the country that year. In , Verbund maintains 226 MW of operational capacity and acquired a fully developed 272 MW onshore project in April 2025 to bolster its regional presence. Earlier acquisitions include a 70% stake in four Spanish farms in March 2022. These international efforts reflect a strategy to offset Austria's geographic limitations for large-scale deployment, with output variability mitigated through storage. Emerging renewables for Verbund center on photovoltaic (PV) solar, positioned to capture diurnal generation peaks complementary to wind's seasonal strengths. Domestic initiatives include tailored PV solutions for commercial clients and a 15 MW park installed for Holcim Austria in 2025, projected to abate up to 15,000 tonnes of CO2-equivalent annually via self-consumption. Abroad, Verbund acquired approximately 110 MWp of PV projects in central Italy's Lazio region in July 2024, alongside a 50 MW solar park commissioned in Spain during the same year. In Romania, a 60 MWp PV park was announced in partnership with Simtel in August 2025, forming the country's first hybrid wind-solar facility to optimize land use and output stability. Combined wind and PV capacity reached 1,182 MW by end-2024, up from 1,052 MW the prior year, supporting a broader target of elevating non-hydro renewables to 25% of total production by 2030. Biomass and other nascent technologies like advanced solar films feature minimally in Verbund's disclosed activities, with emphasis instead on scalable wind-PV hybrids backed by empirical yield data from operational sites.

Trading, Sales, and Optimization

The segment of Verbund AG encompasses trading, , and optimization activities, primarily managed through subsidiaries such as VERBUND Energy4Business GmbH, which focuses on asset marketing, sales volume optimization, and complementary trading operations. This segment integrates the marketing of Verbund's generated electricity—predominantly from —into wholesale and retail markets across , aiming to maximize value through strategic trading and portfolio adjustments. Optimization efforts include precise scheduling and dispatch of power plants to align production with market prices, as well as volume optimization to balance supply contracts and grid constraints. Trading activities emphasize futures markets and short-term products, with a focus on Central European exchanges to hedge and arbitrage price differentials. In 2023, futures trading for supplier contracts averaged €54 per MWh for the front year, reflecting a 55% decline from prior levels amid falling wholesale prices. The segment also provides services such as balancing group management, power plant dispatch optimization, and market intelligence to corporate clients, enabling efficient energy procurement and risk mitigation. Sales volumes in 2024 saw a reduction of 995 GWh in traded and sold electricity, influenced by lower hydro generation and market dynamics, yet the segment contributed positively to overall results through optimized hedging. Financially, the Sales segment's EBITDA reached €7 million in 2024, marking an improvement from prior negative contributions in retail activities, driven by enhanced trading margins despite volatile European power prices. This modest contribution underscores its role as a supportive function rather than a primary profit driver, with emphasis on value extraction from Verbund's core generation assets rather than standalone trading profits. Strategies prioritize risk-averse optimization over speculative positions, aligning with the company's hydropower-dominant portfolio to capture seasonal and hydrological variances.

Environmental and Sustainability Profile

Carbon Emissions and Intensity Metrics

Verbund's electricity generation portfolio exhibits one of the lowest carbon intensities among major European utilities, primarily due to its heavy reliance on , which constituted over 90% of output in recent years. The company's specific (GHG) emissions from Scope 1 sources per of total electricity generated were 20 g CO₂e/kWh in 2020, declining to 14 g CO₂e/kWh in 2021, rising slightly to 17 g CO₂e/kWh in 2022, and falling to 8 g CO₂e/kWh in 2023. These figures reflect operational emissions from residual thermal and gas-fired assets, as Verbund has phased out , , and oil-fired generation by 2015–2023, achieving near-zero emissions for renewable-dominated supply to Austrian end-users at 0.0 g CO₂/kWh in 2023.
YearScope 1 GHG Intensity (g CO₂e/kWh generated)
202020
202114
202217
20238
(ETS) allocations and verified emissions declined by 92% from 2005 to 2023, driven by renewable expansion and efficiency measures, with total operational GHG emissions reaching 522,000 metric tons CO₂e in 2023, predominantly Scope 1. The company targets a 40% reduction in generation intensity from the 2020 baseline of 20 g CO₂e/kWh, aiming for 12 g CO₂e/kWh by 2030, a goal already surpassed in 2023 through ongoing decarbonization of gas assets and increased renewable . Scope 3 emissions, largely from purchased goods and fuel supply chains, comprised the majority of Verbund's total footprint at approximately 4.1 million metric tons CO₂e in 2023, though these are indirect and tied to trading activities rather than core generation. Overall, Verbund's metrics position it well below the European average of around 200–300 g CO₂e/kWh for grid-supplied , underscoring the causal impact of hydro dominance on low-emission profiles.

Decarbonization Efforts and Empirical Outcomes

Verbund's decarbonization strategy emphasizes expanding capacity and phasing out dependencies, as outlined in its Climate Transition Plan published on October 24, 2024. The company targets a 74% reduction in total (excluding certain Scope 3 categories) by 2030 and at least 90% by 2040, relative to the 2020 base year of 6,252 kilotons CO₂ equivalent, with net-zero emissions by 2050 through direct reductions and offsetting residuals. Scope 1 emissions intensity is projected to decline by 40% to 12 grams CO₂ equivalent per by 2030. Key initiatives include repowering facilities to add 19% capacity, developing 60 megawatts of for by 2030 (e.g., via the SoutH₂ and H2EART projects), and converting the Mellach gas plant to operations post-2035, alongside shifting sales to green electricity for corporate clients. Renewable expansion forms the core of these efforts, with plans to increase and solar contributions to 25% of total generation by 2030, building on existing dominance. Projects include 110 megawatts of photovoltaic capacity in and a 50-megawatt solar farm in , plus developments in and . continues from elimination in 2020, with sales to retail customers targeted for cessation by 2040 and managed through OGMP 2.0 standards. These measures align with climate goals and 1.5°C pathways, supported by investments such as a €500 million for grid infrastructure in 2024. Empirical outcomes demonstrate progress, with 96% of 2024 electricity generation (35,712 gigawatt-hours out of 37,056) derived from renewables, primarily . Scope 1 emissions totaled 479,000 tons CO₂ equivalent in 2024, yielding an intensity of 13 grams per , surpassing the 2030 target trajectory from 20 grams in 2020. Overall Scope 1, 2, and 3 emissions (excluding Category 2) fell approximately 19% from 2020 levels by 2024, while System allocations declined 87% from 3.8 million tons in 2005 to 500,000 tons in 2024, avoiding 3.3 million tons. Specific CO₂ emissions reduced 62% from 2016 to 2022, with renewables avoiding 11 million tons by 2022. initiatives are projected to avoid 280 kilotons annually by 2030. These results reflect company-reported metrics, primarily driven by hydroelectric output variability and backups for grid stability.

Criticisms of Green Initiatives

Verbund's initiatives have faced scrutiny for economic unviability without substantial public subsidies. In September 2025, the company halted its 60 MW project, developed jointly with LAT Nitrogen, citing insufficient government funding commitments despite the project's advanced maturity and backing. This cancellation underscores broader challenges in scaling , where high and uncertain revenue streams render such ventures dependent on external support, potentially questioning the standalone feasibility of these "green" technologies. Hydropower expansions, a core component of Verbund's renewable portfolio, have drawn environmental concerns over ecological disruptions. The proposed hydroelectric power station in Gratkorn, , operated by Verbund and Energie Steiermark, elicited opposition due to potential declines in , , and threats to local species, including barriers and trapping that alter downstream ecosystems. Such projects, while low-emission, can impede river connectivity and , prompting calls for mitigation measures like fish passes, though empirical assessments indicate variable effectiveness in restoring pre-dam conditions. Critics have accused Verbund of inconsistent environmental practices, promoting sustainability domestically while pursuing fossil fuel-linked investments abroad. In 2012, the company faced allegations of hypocrisy for advocating in yet allocating millions to power plants in other countries, labeled as "label " by observers highlighting the disconnect between and actions. Although Verbund committed to phasing out by 2020, this episode raised questions about the alignment of international operations with its green branding, particularly amid 's subsidized renewable incentives that favor hydro over diversified low-carbon alternatives. Wind energy initiatives have encountered local resistance in , where Verbund's projects face pushback over landscape alteration and wildlife impacts. Environmental lawyers and communities have protested wind turbine developments as an "invasion of white giants," citing visual despoliation, , and potential collisions, with a 2024 campaign in affected areas drawing ire from project supporters including Verbund. A non-binding in an Austrian province in January 2025 supported a ban, reflecting broader public skepticism toward onshore expansions despite their role in Verbund's diversification strategy. These objections emphasize trade-offs in renewables, where and site-specific harms challenge claims of unalloyed environmental benefits.

Corporate and Ownership Structure

Shareholder Composition

The shareholder structure of Verbund AG is dominated by public entities, with the Republic of holding a majority stake of 51% as mandated by Austrian to ensure national control over key energy infrastructure. This ownership reflects Verbund's origins as a state-coordinated entity for hydroelectric development, limiting private influence on strategic decisions. Among the remaining shares, significant portions are held by regional and municipal public utilities. The City of controls approximately 23.75% through its investments, primarily via Wiener Stadtwerke, while the State of Tyrol holds about 10.2% via TIWAG-Tiroler Wasserkraft AG. EVN AG, a publicly listed Austrian utility with substantial state and municipal backing, accounts for around 25.78% in coordinated holdings with Vienna entities, forming a syndicate that bolsters local government influence. The free float constitutes less than 20% of shares, dispersed among institutional investors such as (1.29%), (0.83%), and (0.61%), alongside smaller retail holdings. This structure, as detailed in Verbund's 2024 annual report, underscores limited dominance and prioritizes public oversight amid Austria's framework.
Major ShareholderOwnership PercentageShares Held (approx.)
Republic of 51%N/A (majority stake)
EVN AG / Wiener Stadtwerke Syndicate~25%43.9 million
City of 23.75%40.4 million
State of Tyrol (TIWAG)10.2%17.4 million
Institutional Free Float (e.g., , )<20%Varied (e.g., : 4.5 million)

Subsidiaries and Equity Interests

Verbund AG maintains a network of wholly owned and majority-controlled subsidiaries integral to its , transmission, trading, and activities. Austrian Power Grid AG (APG), a fully consolidated subsidiary, operates Austria's supraregional high-voltage transmission grid, encompassing over 3,500 kilometers of lines and ensuring secure supply across the country. In parallel, VERBUND Hydro Power GmbH, with Verbund holding an 80.34% stake, oversees the majority of the group's domestic portfolio, including run-of-river and pumped-storage facilities. VERBUND Power GmbH & Co KG, in which Verbund controls a 55.66% interest, manages generation assets, primarily gas-fired plants contributing to peak-load and backup capacity. For gas infrastructure, Verbund acquired a controlling 51% equity interest in Gas Connect GmbH in 2021, positioning the group as a key player in Austria's transmission network while complying with unbundling regulations for transmission operators. Additional fully owned entities include VERBUND Trading AG for optimization and VERBUND Sales (now restructured as VERBUND Energy4Business following a 2025 spin-off) for customer-facing sales and services. VERBUND Green Power handles development and operation of and emerging renewable projects, both domestically and internationally. Beyond majority holdings, Verbund retains significant minority equity interests in regional utilities and cross-border hydropower ventures. As of December 31, 2024, it holds a 35.17% stake in KELAG-Kärntner Elektrizitäts-Kraftwirtschaft AG, a Carinthia-based utility focused on generation and distribution, providing strategic access to southern Austrian energy markets. In hydropower, Verbund participates in joint operations such as Donaukraftwerk Jochenstein Aktiengesellschaft (50% owned with German partners for Danube River generation), Grenzkraftwerke GmbH, Innwerk AG (Inn River plants), and Österreichisch-Bayerische Kraftwerke AG, aggregating substantial capacity under equity-accounted methods. Foreign equity interests, including wind and solar assets in Spain via VERBUND Green Power International and stakes bundled under VERBUND International GmbH, support diversification into Central and Southeastern Europe. These holdings, often structured as joint ventures with state or utility partners, reflect Verbund's emphasis on shared infrastructure for large-scale, capital-intensive projects while mitigating full ownership risks.

Governance and Management

Verbund AG, as an Austrian (AG), adheres to a two-tier board structure mandated by Austrian , comprising an Executive Board responsible for operational management and external representation, and a tasked with oversight, strategy approval, and compliance monitoring. The company aligns with the Austrian Code of , with minor deviations disclosed in its annual reports, emphasizing transparency, independence, and integration of considerations into decision-making processes. The Executive and s collaborate closely to ensure value-oriented corporate steering, with the convening regularly to review performance and . The Executive Board, consisting of four members as of the 2024 reporting period (75% male, average age 58), handles day-to-day business execution under rules of procedure that delineate internal responsibilities, such as finance, operations, and . Michael Strugl serves as Chairman and CEO, appointed in 2019 with his term extending to 2028; he previously held vice chairman roles within the company and brings extensive energy sector experience. Peter F. Kollmann acts as , focusing on financial strategy, with his appointment dating to 2019 and term to 2027. Achim Kaspar, responsible for generation and renewables, has a term until 2026, while Susanna Zapreva-Hennerbichler, who joined on January 1, 2024, oversees sales, trading, and customer solutions, with her term to 2027. The comprises 15 members (40% female, 87% aged over 50), including 10 elected by shareholders at the Annual General Meeting (AGM) and 5 employee representatives, ensuring balanced oversight reflective of Verbund's significant public ownership by Austrian federal and regional entities. Martin Ohneberg has chaired the board since his election, with his term ending in 2028; deputy chairs include Edith Hlawati (first) and Eva Eberhartinger (second). Of the shareholder representatives, 8 are deemed independent, promoting impartial scrutiny. The board operates through specialized committees: the (9 members, 3 meetings in 2023) handles financial reporting and risk; the Strategy and Committee (9 members, 4 meetings) advises on long-term planning and environmental goals; the Committee (3 members, 3 meetings) sets ; and the Nomination Committee (6 members, 2 meetings) manages board succession. Shareholder influence is moderated at AGMs, where voting are capped at 5% per entity except for regional authorities like those representing and Tyrol, which hold substantial stakes (Vienna at 23.75%, Tyrol at 10.2% as of recent disclosures), allowing structured input from public owners without dominance. The 2024 AGM occurred on April 30, approving board proposals and frameworks aligned with metrics. Verbund's incorporates diversity policies targeting gender balance, expertise, and international perspectives, though employee representatives ensure worker interests are addressed amid the company's state-influenced ownership.

Financial and Economic Performance

Verbund AG's exhibited steady growth in the early , rising from €3.45 billion in 2020 to €4.78 billion in 2021, before surging to €10.35 billion in 2022 and €10.45 billion in 2023 amid elevated European wholesale prices triggered by the Russia-Ukraine conflict and supply disruptions. This expansion reflected Verbund's position as Austria's largest , leveraging its hydroelectric assets and trading operations during a period of market volatility. Over the preceding , achieved a of approximately 15.1%, driven by investments in renewable capacity and optimization of power sales. EBITDA mirrored this trajectory, increasing from €1.29 billion in 2020 to €1.58 billion in 2021, then accelerating to €3.16 billion in 2022 and €4.49 billion in 2023, with margins expanding due to higher realized prices outweighing generation costs. Group net profit followed suit, advancing from €631 million in 2020 to €874 million in 2021, €1.72 billion in 2022, and €2.27 billion in 2023, underscoring profitability gains from hydro-dominated generation (which accounted for over 90% of output) amid low marginal costs.
YearRevenue (€ billion)EBITDA (€ billion)Group Net Profit (€ billion)
20203.451.290.63
20214.781.580.87
202210.353.161.72
202310.454.492.27
By 2024, contracted to €8.24 billion and EBITDA to €3.48 billion, with profit at €1.88 billion, as wholesale prices normalized post-crisis, though sustained hydro performance ( up 9.6% year-over-year) mitigated steeper declines. These fluctuations highlight Verbund's sensitivity to price cycles, with trading and sales segments amplifying volatility while core provided stability. Historical patterns prior to showed more modest growth, averaging low double-digits annually, tied to Austria's regulatory framework and gradual renewable expansions.

Recent Results and Market Influences

In the first half of 2025, Verbund AG reported a group EBITDA of €1,413 million, marking a 19.8% decline from the prior-year period, primarily attributable to reduced generation amid below-average precipitation and adverse weather conditions. The group result fell 11.8% to €803 million, with decreasing to €2.31 from higher levels in 2024, reflecting lower output from annual storage power plants, which dropped 3.5% year-over-year. Grid revenues provided some offset, rising €114.9 million to €572.7 million, driven by increased transmission fees at Austrian Power Grid AG. Hydropower dependency exposed Verbund to hydrological variability, with quarter 1/2025 seeing an 18.1% EBITDA drop to €723.9 million due to significantly low inflows, the lowest in recent years for that period. Wholesale prices offered partial mitigation, with base-load spot prices rising on Austrian and German markets in quarters 1–2/2025 compared to 2024, influenced by tighter supply dynamics and seasonal demand. However, regulatory interventions eroded gains, including Austrian windfall levies totaling €22.1 million and similar measures in (€4.8 million) and during the half-year, targeting excess profits from volatile energy markets. Broader market pressures in 2025 stemmed from escalating geopolitical tensions, which intensified in quarter 2 and contributed to price volatility across European exchanges. Analysts continued earnings moderation, with Verbund's results potentially declining 14% annually over the next three years amid normalizing wholesale prices and persistent weather risks, though grid expansions and diversified renewables may stabilize long-term output. Austrian domestic factors, including rising grid fees and taxes set to elevate end-user prices from 2025, further constrain retail margins despite Verbund's push into dynamic tariffs tied to fluctuations.

Economic Contributions and Cost Implications

Verbund AG, Austria's largest energy utility, employs an average of 4,149 full-time equivalents in 2024, contributing to skilled labor in , operations, and across and grid infrastructure, with total headcount reaching 4,424 including part-time roles. The company's personnel expenses rose 16.8% to €570.8 million in 2024, reflecting wage growth amid , while planned grid expansions by Austrian Power Grid AG—totaling €9 billion by 2034—are projected to generate over 10,000 indirect jobs through construction and supply chains, with 70% domestic in Austrian projects. In fiscal year 2024, Verbund recognized €638.5 million in income taxes, with cash outflows of €320 million, alongside €73.4 million in other taxes such as capital gains, bolstering public revenues during Austria's 0.6% GDP contraction. Capital expenditures reached €1,161.1 million for property, plant, and equipment, focusing on renewable generation and storage, with €5.873 billion allocated for 2025–2027 (€4.004 billion for growth initiatives like pumped storage and ). These investments, 92.5% aligned with EU taxonomy for climate mitigation, enhance by producing 79 TWh annually—primarily low-marginal-cost —reducing import dependence in a where consumption grew 2% to 67 TWh. Cost implications arise from Verbund's pricing adjustments and regulatory burdens, including a 2023 tariff hike for and commercial customers driven by elevated costs, later partially refunded after rulings deemed certain clauses unlawful. Windfall taxes, such as Austria's Electricity Energy Crisis Contribution (thresholds of €90–100/MWh), extracted €35.2 million in provisions used during 2024, alongside similar levies in and totaling €28.2 million earlier, potentially passed through via higher grid fees projected to rise in 2025. While hydropower's stable output mitigates wholesale price volatility (average spot €82/MWh in 2024), consumer s incorporate network charges and levies comprising a significant portion of bills, with government interventions like €105 annual supplements for larger s offsetting some burdens through 2026.

Controversies and Regulatory Challenges

Tariff and Pricing Disputes

In May 2022, Verbund AG implemented a price increase for its electricity tariffs, relying on an adjustment clause linked to the ÖSPI (Austrian Mineralölpreisindex), which the Verein für Konsumenteninformation (VKI) contested as unfair and lacking transparency, tying residential prices to wholesale market fluctuations without adequate consumer safeguards. The Higher Regional Court of Vienna (OLG Wien) ruled in February 2023 that this clause was invalid under Austrian consumer protection laws, deeming it an impermissible unilateral adjustment mechanism that exposed customers to undue risk from volatile energy indices. Verbund did not adjust work prices in October 2022 despite further market shifts, potentially limiting refund exposures, though the company maintained the increases were justified by rising procurement costs amid the European energy crisis. A settlement was reached in September 2024 between VKI and Verbund, providing refunds to approximately 350,000 affected customers for the 2022 hikes, averaging around €50-100 per based on consumption, though the Verband Sozialer Verbraucherverbände (VSV) criticized it as insufficient and urged rejection in favor of broader class actions. Separately, Verbund's March 2023 tariff escalation, again via a contested , was declared unlawful by the Austrian (OGH) in May 2025, invalidating the basis for the hikes and prompting demands for reimbursements totaling millions of euros, with VSV threatening lawsuits if Verbund failed to comply voluntarily. Verbund announced plans to adverse rulings, including a October 2023 decision upholding the invalidity of its adjustment mechanisms, arguing that such clauses are standard in long-term contracts to reflect real-time market realities like gas price surges from geopolitical events. These disputes highlight tensions between regulated in Austria's partially liberalized market and protections under the Austrian (ABGB), where courts have prioritized predictability over pass-through of wholesale volatility. No final resolution on all appeals has been reported as of late 2025, but the outcomes have influenced Verbund's tariff structures, prompting introductions like dynamic spot tied to hourly European exchange rates for select customers.

Project Viability and Cancellations

In September 2025, Verbund AG and partner LAT Nitrogen announced the indefinite pause of the Green Ammonia Linz (GrAmLi) project, a planned 60 MW initiative aimed at producing for sustainable synthesis at LAT Nitrogen's facility. The project, initially launched in December 2023, sought to leverage renewable-powered to generate up to 9,000 tonnes of annually in its first phase, supporting fertilizer, , and technical nitrogen production while reducing reliance on fossil-based processes. Despite securing Innovation Fund support and achieving significant technical maturity, including site planning and electrolyzer specifications, the partners cited insufficient public funding commitments and broader economic pressures as rendering the venture unviable under current conditions. The decision underscores challenges in scaling infrastructure, where high capital costs—estimated at over €200 million for alone—demand substantial subsidies to compete with gray alternatives priced below €2 per kg amid volatile energy markets. Verbund emphasized that fluctuating renewable prices, regulatory uncertainties in , and delayed European funding disbursements eroded projected returns, with internal assessments indicating periods exceeding 15 years without enhanced incentives. This pause aligns with a pattern of European setbacks, as similar projects in faced cancellation due to analogous economic headwinds, highlighting systemic viability risks tied to overreliance on rather than market-driven costs. Verbund has not disclosed sunk costs but noted that preparatory investments, including feasibility studies and permitting, remain assets for potential revival if subsidies improve or offtake prices rise. No outright cancellations of Verbund's core hydroelectric or projects have been reported, though hydrological variability and Austria's windfall taxes on surpluses have strained overall expansion viability, indirectly pressuring diversification into . The GrAmLi halt reflects Verbund's strategic pivot toward more proximate renewable integrations, such as hybrid -solar parks in , where lower regulatory hurdles and established grids offer shorter paths to commercialization. Partners indicated the project could resume post-2030 if EU strategy evolves to address cost gaps, but current prioritize incremental hydro upgrades over speculative deployments.

Broader Policy Critiques

Verbund executives have critiqued Austria's windfall profit taxes on energy companies, implemented since 2022 and escalated to rates of up to 95% on surpluses by 2025, for undermining long-term investments in clean energy infrastructure such as expansion, grid upgrades, and storage. These levies, justified by the government as redistributing crisis-era gains from high wholesale prices, have contributed to a projected 2025 EBITDA decline for Verbund despite stable production, with CEO Michael Strugl arguing that are essential for a €100 billion national investment plan in power generation and transmission to address . Company leadership has also highlighted bureaucratic delays in project approvals as a systemic barrier to accelerating the , with Strugl noting in 2022 that protracted permitting processes and site shortages prevent timely deployment of renewable capacity amid rising demand. This critique extends to insufficient policy focus on "systemic balance" in Austria's renewable mix, where emphasis on intermittent sources like and solar has overlooked integration with dispatchable —Verbund's core asset—leading to grid instability risks and higher system costs without corresponding expansions in storage or interconnectors. Strugl has further warned against political shifts undermining commitments, countering 2025 government discussions on relaxing targets by emphasizing that such reversals introduce business uncertainty and forfeit opportunities for sustained through decarbonization, particularly as Austria's hydro-dominated supply faces hydrological volatility exacerbated by climate variability. While Verbund supports EU-level mechanisms like CO2 pricing for incentivizing low-carbon technologies, domestic implementation gaps, including high network tariffs and taxes comprising up to one-third of end-user costs, distort competitive incentives for efficient producers. These shortcomings, per company assessments, perpetuate Austria's import dependence and elevate prices, contrasting with from hydro-rich systems where stable baseload reduces reliance on volatile fossil imports.

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