Leonore Gewessler, Minister of Climate Action, Environment, Energy, Transport, Innovation and Technology, said that heating accounts for a quarter of Austria's natural gas consumption. According to the plan, heating oil or coal heaters will need to be replaced with renewable heating systems, and by 2035, the country will be completely replaced. The technology is currently set to be banned in 2025. The country is racing to become climate neutral by 2040, with a goal of replacing 80 percent of its fossil fuel hydrogen with "climate neutral" hydrogen. So-called blue hydrogen is produced from natural gas, but carbon dioxide emissions are captured so they don't reach the atmosphere.
The Ministry of Environment, Urbanisation and Climate Change has changed zoning regulations for areas without detailed urban plans. Solar power plants used for irrigation are exempt if their surface is less than 125 square meters and the highest point is not more than 150 cm above the ground. Owners can only build them on a metal frame, without a concrete foundation.
As part of the National Energy and Climate Plan (NECP), the goal is to install at least 2 GW in offshore wind farms by 2030. Independent Transmission Operators (IPTOs) specialize in the research, installation and operation of interconnections. State-owned company Hellenic Hydrocarbon Resources Management will take over the process of developing offshore wind power. The first project is expected to be in Alexandroupolis, which has been designated as an offshore wind pilot area. Next, the Energy Regulator will start an auction, where each investor will submit an offer for each field for which they are licensed. Successful investors will have exclusivity within each area and the criteria will be based on the lowest bid.
Steel is one of the hardest industries to decarbonize, along with chemicals, cement and transportation. Converting all BF-BOF plants in the EU to hydrogen-based DRI/EAF would require up to 5.3 million tonnes of renewable hydrogen and up to 370 TWh of other renewable electricity. The challenge becomes even greater if variable renewable electricity is used and the electrolyzers cannot operate at constant full load. According to an analysis by the European Commission, the cost of producing hydrogen using solar photovoltaics will rise to almost 7 billion euros for a single average-capacity plant. In order to break even, the transport price of hydrogen must be less than 3 euros per kilo, with a high price, in another case less than 1.5 euros per kilo. Underground hydrogen storage in salt caverns offers a cost-effective solution, but they are not available across the EU.
As the energy crisis unfolds, the European Union eases rules on financing gas projects. But such efforts can only receive administrative support if there is an option to blend or switch to cleaner hydrogen. Municipal district heating company Termoficare Oradea has made a public call to hire consultants for its 80 MW solar park and hydrogen production facility project.
Demand and supply in the grid must be constantly balanced. Pumped-storage hydropower remains the only traditional and most cost-effective technology for large-scale balancing of power systems. Iberdrola has just opened Tâmega Gigabattery in Portugal. According to the European Energy Storage Association, the EU will need 200 gigawatts of energy storage by the end of the century and 600 gigawatts by 2050. Iberdrola's Tâmega Gigabattery is one of the largest pumped hydro storage projects in Europe for the past 25 years.
The facility, valued at 1.5 billion euros, has not yet been completed. It consists of two reservoirs connected to a tunnel, of which the engine room is located underground. Recently, another large pumped hydro storage facility came online in Switzerland.