Austria’s New Electricity Act Navigating the grid of tomorrow: key changes for grid operators (1/3)

Austria’s energy landscape is on the verge of a significant transformation: On December 11, 2025, the Austrian federal government agreed on the 'Cheaper Electricity Act', which (also) includes a revised version of the new Electricity Act (Elektrizitätswirtschaftsgesetz – ElWG). The ElWG is set to replace the outdated Electricity Act 2010 and constitutes a strategic shift in the regulatory framework of the Austrian energy market. It introduces a modern regulatory framework designed to foster a competitive, consumer-centric, and decarbonized energy market. The ElWG will have a significant impact on grid operators (Netzbetreiber), producers (Stromerzeuger) and suppliers (Lieferanten) and will also provide new flexibility mechanisms. This blog post, the first in a three-part series, focuses on the key implications of the ElWG for grid operators. 

Peak shaving: a new tool for grid stability

To optimize the use of existing grid infrastructure, the ElWG formally introduces peak shaving (Spitzenkappung) as a legal right of grid operators. Grid operators can limit the feed-in power of wind and solar plants to prevent grid congestion. While peak shaving is a critical tool for grid stability, it carries significant implications for plant operators, as they do not receive financial compensation in the case of peak shaving. 

The ElWG outlines the legal framework for peak shaving: 

1. Wind power plants: peak shaving must not exceed 1% of the total annual energy production and is capped at 15% of the plant’s net-effective power. These calculations are based on a ‘reference plant’ (to be defined in a separate ministerial ordinance).
2. Solar power plants: feed-in power must not fall below 70% of the module’s peak power. To facilitate peak shaving by the grid operator, operators of new or significantly modified solar plants must ensure their facilities are remotely controllable. Once controllability has been established, the ElWG recommends dynamic rather than static peak-shaving. 

A key safeguard for plant operators is the maximization principle, which states that peak shaving is only permitted when the situation on the grid genuinely requires it. The ElWG exempts plant operators from peak shaving in certain cases. For example, this applies if the operator covers the costs of an unconstrained grid connection, or if the plant is connected to a direct line and its grid feed-in does not exceed the statutory limit. The ElWG also assigns clear responsibilities for mitigating the financial impacts of peak shaving: Grid operators must notify any necessary peak shaving, including its expected duration and extent, at the earliest possible time. The timing of this notification determines the obligations of the parties involved: If the notification is issued before 9 am on the day before the peak shaving, the plant operator must adjust their trading position as best they can to avoid costs, for example in the day-ahead market. Conversely, if the notification is provided after this deadline, the grid operator responsible for peak shaving bears the related costs. 

Flexible grid connection: a contractual pathway to faster connection 

The ElWG introduces the possibility of granting flexible grid connection. Flexible grid connection allows the connection of renewable energy plants to the grid even if the capacity at the connection point is not (yet) sufficient for the full requested output. Rather than facing long delays for grid expansion, operators can opt for a faster connection with limitations that have been agreed upon in the contract. Like peak shaving, this mechanism aims to accelerate the integration of renewables by making optimal use of existing infrastructure. However, unlike peak shaving, which is a statutory right of the operator, flexible grid connection is based on a voluntary contractual agreement. 

The implementation of flexible grid connection varies depending on the grid levels:

At the level of the distribution grid, a distribution system operator (DSO) and a plant operator can agree on a static or dynamic limitation of the plant’s effective net-power. However, such agreement is temporarily limited and is linked to necessary grid expansion. The ElWG establishes clear, staggered deadlines, based on grid level, by which the DSO must provide full, unconstrained grid access. In practice, flexible grid access may thus provide a solution for bridging the gap until planned grid updates are completed.

At the level of the transmission grid, there is no temporal limitation for flexible access. The transmission system operator (TSO) can offer grid connections with limited access or specific operational restrictions. However, any such limitation or restriction must be based on transparent and non-discriminatory procedures and must not create undue barriers to market entry. It must also be approved by E-Control, the national regulatory authority, in a formal decision. Despite the lack of temporal limitations, flexible access to the transmission grid may prove economically advantageous, for example for energy storage facilities, if their business model is not designed to feed in or withdraw power at full capacity on a permanent basis. 

Coordinated, forward-looking grid planning 

A central pillar of the ElWG is the introduction of a more harmonized, forward-looking grid planning process. While TSOs were already required by the Electricity Act 2010 to produce a network development plan (NDP) every two years, the new ElWG extends this responsibility to DSOs, establishing a framework for closer coordination between all grid levels. 

For the first time, the ElWG has mandated that DSOs with at least 1,000 metering points must develop and publish their own NDPs. These plans must include detailed information on planned investments to increase grid connection capacity for new generation facilities and loads; the planned and existing use of flexibility services; and the identification of suitable locations for the system-supportive operation of new storage and generation facilities. The planning process for DSOs is transparent and collaborative: Before submitting the NDP to the regulatory authority, DSOs must consult with all relevant market participants, including TSOs, as well as federal states, via a shared internet platform. The final NDP must be published within eight weeks of its submission to the regulatory authority. If the NDP does not meet legal requirements, the regulatory authority may order amendments. 

To ensure a cohesive, cross-level planning process, the ElWG introduces an alternating rhythm for the submission of NDPs: DSOs submit their plans in even-numbered years, while TSOs submit their updated plans in the odd-numbered years that follow. Crucially, TSOs are explicitly required to consider the DSOs NDPs when creating their own. This integrated approach ensures that development at the high-voltage transmission level is aligned with the needs and planned projects at the local and regional distribution levels, making future grid expansion more efficient, transparent, and responsive. 

Digitalization – the grid operator as a data hub

The ElWG is a significant step towards digitalization, fundamentally changing the role of grid operators from managers of physical infrastructure to central data hubs in a modern energy system. This shift is driven by the need to create a digitalized, interoperable, and data-driven energy market capable of integrating a massive increase in decentralized assets.

The enhanced role of smart meters is a cornerstone of the new data-centric approach. The ElWG has reversed the previous 'opt-in' model for collecting detailed data; quarter-hourly energy values are now the standard data output for these devices. While household customers can still opt out of this detailed data processing, this right is limited in cases where data availability is essential for the grid operator to manage the grid effectively. Increased data availability is necessary to enable dynamic pricing, demand response programs, and accurate billing. However, this also means that grid operators must prepare for a significant increase in the volume of data they manage. 

To manage this data flow, the ElWG mandates the creation of a centralized and standardized data exchange. Grid operators must ensure a common communication infrastructure that guarantees efficient and secure data access and exchange. Duties of grid operators include data storage and management, the development and operation of data exchange infrastructure, or ensuring interoperability between market participants. Although grid operators can hire a third party to handle data administration, they remain legally responsible for it. 

Furthermore, the ElWG mandates DSOs to establish a common internet platform by January 1, 2026. However, given that the legislation was only recently passed, it remains to be seen whether this deadline will be met. The internet platform is intended for the publication of essential information, including NDPs, general network conditions, and the capacity of available and booked grid connections. 

Opportunities and challenges for businesses: a practical outlook 

• Faster project realization thanks to flexible grid access: Businesses can connect renewable energy plants or storage facilities to the grid more quickly through flexible grid access agreements, even in areas with limited capacity. However, the limited power feed-in stipulated in the contract requires robust financial planning to account for these constraints, particularly for permanent agreements at the transmission level.
• Loss of income due to peak shaving: Peak shaving introduces a direct financial risk for plant operators, since curtailments are not compensated for. However, the strict notification deadline creates an opportunity for businesses with sophisticated market strategies to actively manage their trading positions and mitigate losses This means that, if they react accurately and on short notice, peak shaving does not necessarily come with a regulatory risk for these businesses.
• Enhanced strategic investment planning: The new requirement for all DGOs to publish detailed ten-year NDPs is a major opportunity for any business planning large-scale investments. Publishing the plans provides long-term transparency regarding where grid capacity exists and where expansions are planned. This allows companies to reduce the risk of their investments by strategically selecting sites with secure, future-proof grid access.
• New responsibilities for grid operators: Grid operators will likely have to make major investments and build expertise to handle the exponential growth in data volume from smart meters. Grid operators will also need to develop internal mechanisms to ensure compliance with data protection legislation and mitigate the associated risks of liability.