Austria: EIB supports hydropower expansion in Upper Austria

This article is published in association with European Investment Bank.

• The EIB is providing €320 million in loans for the construction of the Ebensee pumped storage power plant.
• Energie AG plans to invest more than €600 million to expand hydropower in Upper Austria, with a €400 million financing package for this objective approved by the EIB.

The European Investment Bank (EIB) has granted Energie AG Oberösterreich in Upper Austria a financing package of up to €400 million to expand hydropower. Energie AG plans to invest a total of over €600 million in a new pumped storage power plant in Ebensee and a planned run-of-river hydropower plant in Roitham/Traunfall.

The Ebensee pumped storage power plant will act as a green battery, compensating for fluctuations in the power generation from wind and solar plants and ensuring security of supply. Financing agreements for the Ebensee project encompassing €320 million were signed at EIB headquarters in Luxembourg.

The Ebensee project is the single largest investment by Energie AG Oberösterreich to date, and is a milestone in the transformation of the energy supply in Upper Austria. An additional €80 million in financing for the Traunfall run-of-river power plant, intended to replace three hydropower plants at the end of their useful life, has also been given advance EIB approval. The relevant financing contracts are set to be signed in 2025, subject to the pending approval of the project by the Supervisory Board of Energie AG Oberösterreich. 

“Rapidly expanding renewable energy is crucial for decarbonising the economy. 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,” said EIB Vice-President Thomas Östros.

“Our strategy at Energie AG Oberösterreich has set a course for maximum carbon reduction throughout the entire company. All told, we will be investing €4 billion by 2035 to expand renewable energy and grids. We are also making major investments in green hydrogen production,” said Leonhard Schitter, Chair and CEO of Energie AG Oberösterreich.

“In the coming decades, the energy sector – including Energie AG Oberösterreich – will be influenced by high investment requirements for the process of transformation needed to develop a sustainable energy system. A key success factor in this process will be providing for future financing requirements early, with optimal borrowing and framework conditions. With the EIB, we are delighted to have a strong partner on board for this challenge,” said Andreas Kolar, CFO of Energie AG Oberösterreich.

This project is part of REPowerEU, the EU plan to rapidly reduce Europe’s dependence on fossil fuels. Thanks to REPowerEU, the EIB is able to finance a higher share of the total project costs than the usual 30-50%.

The investment also furthers the objectives of Austria’s National Energy and Climate Plan, which plans to convert all electricity generation to renewables by 2030.

Background information  

EIB 

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

In 2024, the EIB Group signed financing of €1.7 billion in Austria. This primarily promoted countercyclical investments in energy-intensive sectors like steel and renewable energy.

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Energie AG Oberösterreich is a leader in the sustainable future of energy. As the largest energy provider in Austria’s main industrial region, it is doing everything it can to cut emissions throughout the cycle of generation, distribution and recycling – sustainably reducing the CO₂ produced by the entire organisation. The goal: to be climate neutral and energy independent by 2035, ensuring security of supply and safe disposal. By 2035, renewable energy sources like water, wind and solar should generate a total of 1.2 TWh per year. That’s the average electricity consumption of around 330 000 households – meaning more than 700 000 people. With the construction of the Ebensee pumped storage power plant, Energie AG Oberösterreich is taking yet another important step towards a sustainable energy future.