Transition to renewable power
Photovoltaics and wind turbines as long-term sources of green electricity
It is far easier to generate electricity from renewables than it is to produce other renewable energy vectors such as hydrogen (H2) and biomethane. A whole host of measures have been implemented as a result and will, inevitably, lead to far higher electricity consumption over the medium to long-term. Key areas of this transition include the automotive industry (where EVs are displacing ICE-powered vehicles), heating systems (with heat pumps replacing gas-fired boilers and oil stoves), industrial heating processes (with electric arc furnaces replacing gas-fired furnaces) and gas-based energy (with electrolyzers deployed to produce H2 in place of natural gas). While all of these trends are well underway, they are yet to take full effect.
In parallel with this, and alongside efforts to achieve net zero emissions, the rise of artificial intelligence involves vast datacenters that consume enormous amounts of electricity. A prime example is Microsoft, which is training AI software with vast quantities of wide-ranging data. In the autumn of 2024, it was announced that a decommissioned reactor at the Three Mile Island nuclear power plant in the USA will be restarted to supply power to Microsoft datacenters. Microsoft has agreed a twenty-year power purchase agreement. This is the first time that a mothballed nuclear power plant in the USA will be reactivated - and at a site where a neighboring reactor experienced a partial meltdown in 1979. While AI companies’ datacenters will be located primarily in the USA, other sites have been planned in Europe and Asia - a clear sign of high power demand in the future. For the renewable electricity transition to succeed, expansion of renewable generation capacity (i.e. solar, wind, hydroelectric and biomass power installations), power grid infrastructure and power storage capacity is essential. Renewable generation capacity dominates political discourse to an astonishing extent, with infrastructure afforded very little attention. Expansion targets have been defined in an array of laws and plans in Austria, including the Renewable Energy Expansion Act (Erneuerbaren-Ausbau- Gesetz - EAG), the Integrated Network Development Plan (Österreichischer Integrierter Netzentwicklungsplan - ÖNIP) and the National Energy and Climate Plan (Nationaler Energie-und Klimaplan - NEKP). While the targets differ, they were also issued at different points in time. The EAG, for example, targets an additional 27 TWh of generation by 2030, with +11 TWh from solar power (overall target: 13 TWh), +10 TWh in wind (overall target: 17 TWh), +5 TWh from hydroelectric power plants (overall target: 47 TWh) and +1 TWh from biomass power plants (overall target: 4 TWh) (Figure 1). The NEKP targets an additional 35 TWh for 2030, while the ÖNIP envisions an additional 39 TWh. While Austria is on course to meet its solar power generation targets, more attention must be paid to increasing wind power capacity.
In parallel with these legislative developments, AMAG developed an energy supply strategy with the aim of securing access to sufficient quantities of energy at competitive prices. AMAG entered the world of renewables in 2021 by installing a 6,500 kWp roof-mounted PV system as its Ranshofen site, which was later expanded to 7,100 kWp. In 2024, AMAG decided to increase its roof-mounted PV capacity by a further 6,000 kWp across six halls. The extension (Figure 2) was prepared and installed from May to October 2024 and commissioned on schedule by the end of 2024. The PV system now comprises roughly 30,000 PV modules across 120,000 square meters and generates in the region of 13 GWh of electricity for AMAG per year. This is equivalent to the average power consumption of 3,700 households. At present, this is one of Austria’s largest roof-mounted PV installations. But while the system’s scale is impressive, it only covers a fraction of AMAG’s annual power consumption of 250 GWh.
With this in mind, AMAG concluded a long-term power purchase agreement (PPA) with ImWind in the spring of 2024, securing a supply of green electricity from three wind turbines. These three 6 MW turbines, which together generate 48 GWh per year, are located in Paasdorf bei Mistelbach, in the Weinviertel district of Lower Austria (Figure 3). The turbines were constructed in the course of 2024. They were transported to the site over the summer with the grid connection established, testing completed, and the turbines commissioned in Q4 of 2024. These state-of-the-art turbines have a hub height of 169 m and a blade radius of 75 m. These dimensions continue to present a technical challenge when it comes to transporting and assembling the turbines, especially lifting and fitting each blade at a height of 169 m. The turbines commenced operation as planned on January 1, 2025, concurrent with the start of AMAG’s supply agreement with ImWind. This is one of the largest renewable PPAs in Austria and will cover around 20% of AMAG’s current power requirements. This represents an important step towards the long-term procurement of green power, especially because the average implementation period for wind power projects in Austria is currently around eight years. In fact, the process of planning these wind projects began in 2017. In 2030, AMAG will be able to assess how its power consumption has developed in relation to statutory plans and targets (i.e. EAG, ÖNIP and NEKP), its production volumes and fossil-fired power plants still in operation. It is already clear, however, that the transition to renewable electricity will remain a persistent challenge in years to come.
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