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Austria is already capable of covering a large portion of its electricity needs from renewable energies:
Austria’s hydropower plants delivered 5.3 % more electricity in 2009 due to a good water supply. And
due to the ambitious climate protection goals, it will still be important to attach high priority to the
promotion of renewable energies.
In the Austrian Energy Strategy presented in March 2010, the potential for hydropower expansion
was estimated to be 3.5 TWh by 2015. The doubling of energy generation from wind power, hoped
to be achieved by 2020, places a clear focus on pumped storage power plants to balance out natural
fluctuations in wind energy as necessary.
On the international crude oil markets, the drastic price reduction seen since mid-2008 came to a halt in
the first quarter of 2009. However, oil prices remained a long way from the highs recorded in 2008. Brent
crude oil traded 2009 at an average of $ 63 in 2009; in 2008 it was $ 98 (Brent Front Month).
Based on average prices for 2009, the long-term price of natural gas on the EEX futures market (NCG
front year) was around 41 % lower than in the previous year.
Due to the recession the trading volume on the international market for hard coal for use in power
plants declined significantly compared with 2008. Based on the average price for 2009, the price of coal
on the EEX futures market (ARA front year, euro basis) was around 37 % lower than the average value
for 2008.
European trading in CO2 emission allowances was also hit by the recession. Production shutdowns
at energy-intensive businesses meant that the market was flooded by additional certificates, putting
pressure on prices.
In February, emission allowances (EU Emission Allowances – EUAs) for 2009 briefly traded at less than
€ 10/t. Prices then recovered somewhat, before subsiding once again at the end of 2009 due to the largely
unsuccessful climate summit in Copenhagen in December 2009. Since no binding reduction targets were
agreed, there was no incentive to trade with CO2 certificates. Most recently, a price of just over € 14/t was
reached for the EUA contract for December 2009.
Starting in 2013, the energy companies in western Europe – including Verbund – will no longer be
awarded free CO2 certificates. These companies will then have to buy 100 % of their CO2 certificates, as
previously, on the secondary market or at CO2 auctions.
Significant drops in the price of fuel and emission rights were reflected in European wholesale electricity
markets. The average base and peak price for the German/Austrian market region in spot trading on the
Paris-based EPEX electricity exchange in 2009 was substantially lower than in the previous year: the price
for base-load energy was € 38.9/MWh and was therefore about 41 % down on the average value for 2008.
The price for peak-load energy came to € 51.2/MWh, or 42 % down on the 2008 average.
Prices in forward electricity trading also fell. At € 49.2/MWh, the average front-year base price for the
German/Austrian market region on the Leipzig-based EEX electricity exchange in 2009 was down 30 %
on the average figure for 2008.
Meanwhile, the average front-year peak price in 2009 amounted to € 69.8/MWh, also 30 % lower than
the average price for 2008.
BUSINESS FRAMEWORK | SUSTAINABILITY REPORT 2009 | 19
EXPANSION OF PRODUCTION
FROM RENEWABLE ENERGY
SOURCES
PRIMARY ENERGY PRICES
WELL UNDER PREVIOUS
YEAR'S FIGURES
CO 2 EMISSIONS TRADING:
CERTIFICATE PRICES
TEMPORARILY DROP
BELOW 10-1
LOWER PRICES ON THE
EUROPEAN ENERGY
MARKETS