Michael Strugl on the energy future

Taking stock of the green transformation

Anyone talking about Austria’s economic future in recent weeks and months will inevitably land on two terms: competitiveness and climate action. Both are important, both are highly controversial politically – and too often, they are pitted against each other. As if it were impossible to strengthen the country as a business location and achieve climate targets at the same time. But I am convinced that this comparison is not enough. The necessary transformation of our energy supply is not a brake on the economy; it is its ally.

We are currently experiencing a tectonic shift. Industrialised countries that invest in climate-friendly technologies early on can secure competitive advantages for decades to come. Unfortunately, not everyone has understood this just yet. What is clear is that transforming the energy landscape is far from easy. It is similar to open-heart surgery: all vital functions need to be maintained during the intervention. This applies to the human body, but figuratively speaking it also applies to energy supply. It has to be guaranteed at all times and everywhere, for the benefit of society and the economy.

The more secure, Austrian-generated energy from hydropower, wind and solar is fed into the system, the lower the risk of extreme price fluctuations and the lower the dependence on imports. In view of the large number of global crises, the latter cannot be overstated. And there are other benefits that will result from converting: a fully modernised power system with competitive prices will attract companies that urgently need clean energy in order to compete internationally. Last but not least, this shows that the switch to a CO₂-neutral economy is anything but a luxury; it is a tangible economic location policy. This is precisely where Austria has a great opportunity – if we seize it.

VERBUND set a course heading in this precise direction a long time ago. As Austria’s largest energy group, we see ourselves as spearheading a movement that hopefully will inspire others. We have a lot to show for it and a lot still to develop. In the 2025–2027 period alone, the updated VERBUND investment plan provides for expenditures of almost 5.9 billion euros. Of this amount, growth CapEx accounts for a good four billion euros, the remainder going towards maintenance measures in the existing power plant portfolio and power lines.

These high investments are by no means an outlier. The energy industry has already invested a lot of money in recent years to make Austria’s electricity supply fit for the future.

You can find the complete interview in our INSPIRE magazine.