EIB Backs Energie AG Oberösterreich with €400 Million for Hydropower Expansion in Upper Austria

Energie AG Oberösterreich is committing a total investment of over €600 million into these initiatives, reinforcing Austria’s national commitment to transitioning to a fully renewable electricity supply by 2030.

In a major step toward Austria’s renewable energy transformation, the European Investment Bank (EIB) has approved a financing package of up to €400 million for Energie AG Oberösterreich. This funding will facilitate the expansion of hydropower capacity in Upper Austria, supporting two major projects: the new pumped storage power plant in Ebensee and a planned run-of-river hydropower plant in Roitham/Traunfall.

Energie AG Oberösterreich is committing a total investment of over €600 million into these initiatives, reinforcing Austria’s national commitment to transitioning to a fully renewable electricity supply by 2030. The financing agreements for the Ebensee project, amounting to €320 million, were recently signed at the EIB headquarters in Luxembourg, marking a significant milestone in Austria’s energy landscape.

Ebensee Pumped Storage Power Plant: A Green Battery for the Future

The Ebensee pumped storage power plant is set to become a cornerstone of Upper Austria’s energy infrastructure. Acting as a green battery, the plant will play a crucial role in balancing energy supply and demand by compensating for fluctuations in wind and solar power generation. This flexibility will ensure the stability and reliability of the regional power grid, ultimately reducing reliance on fossil fuels.

The facility will store surplus electricity by using excess energy to pump water into an upper reservoir. When electricity demand peaks, the stored water will be released through turbines to generate power. This technology is a proven solution for integrating renewable energy sources into the grid while maintaining a secure and stable energy supply.

Run-of-River Hydropower Plant in Roitham/Traunfall

In addition to the pumped storage project, the EIB has given preliminary approval for €80 million in financing for a new run-of-river hydropower plant in Roitham/Traunfall. This project will replace three aging hydropower plants that have reached the end of their operational lifespan. The final financing contracts are expected to be signed in 2025, pending the approval of the Energie AG Oberösterreich Supervisory Board.

Run-of-river hydropower plants utilize the natural flow of rivers to generate electricity, offering a reliable and continuous source of renewable energy with minimal environmental impact. This new plant in Roitham/Traunfall will enhance energy production efficiency while improving flood protection and river ecosystem management in the region.

Strategic Vision and Commitment to Decarbonization

The investment in these hydropower projects is part of Energie AG Oberösterreich’s broader strategy to achieve carbon neutrality. The company has pledged to invest a total of €4 billion by 2035 to expand renewable energy sources, modernize energy grids, and develop green hydrogen production capabilities.

“Rapidly expanding renewable energy is crucial for decarbonizing the economy,” stated EIB Vice-President Thomas Östros. “The hydropower plants by Energie AG Oberösterreich are another important step on the road to a climate-neutral energy supply, and will help reduce Europe’s dependence on oil and gas imports.”

Leonhard Schitter, Chair and CEO of Energie AG Oberösterreich, emphasized the importance of this investment: “Our strategy at Energie AG Oberösterreich has set a course for maximum carbon reduction throughout the entire company. These projects are key components of our long-term vision for a sustainable energy future.”

Andreas Kolar, CFO of Energie AG Oberösterreich, highlighted the financial importance of these initiatives: “The energy sector is undergoing a major transformation that requires high investment levels. Partnering with the EIB ensures that we have the necessary financial backing to support these ambitious projects under optimal borrowing and framework conditions.”

Alignment with EU and Austrian Energy Goals

These investments align with the EU’s REPowerEU initiative, which aims to reduce Europe's dependence on fossil fuels through accelerated renewable energy development. As part of this plan, the EIB is able to finance a higher share of the total project costs than its standard 30-50% range, ensuring that projects like those led by Energie AG Oberösterreich receive the necessary support to move forward.

Additionally, the projects are a vital component of Austria’s National Energy and Climate Plan, which targets a fully renewable electricity supply by 2030. By expanding hydropower infrastructure, Austria is reinforcing its commitment to clean energy while enhancing the security and resilience of its energy system.

A Sustainable Future for Austria

The financing agreement between the EIB and Energie AG Oberösterreich represents a landmark moment for Austria's transition to sustainable energy. By investing in modern hydropower infrastructure, the country is taking decisive action to combat climate change, reduce its reliance on fossil fuels, and secure a stable energy future for generations to come.

As Austria continues its progress toward a carbon-neutral economy, projects like the Ebensee pumped storage plant and the Roitham/Traunfall run-of-river facility serve as exemplars of sustainable energy development. These investments not only advance the nation’s environmental goals but also support economic growth, technological innovation, and energy independence across the European continent.