EIB Grants €400M to Energie AG Oberösterreich for Major Hydropower Expansion in Upper Austria

The Ebensee pumped storage power plant, the largest single investment in Energie AG Oberösterreich's history, is designed to function as a massive "green battery."

The European Investment Bank (EIB) has approved a substantial financing package of up to €400 million for Energie AG Oberösterreich, supporting a landmark expansion of hydropower infrastructure in Upper Austria. This investment aims to enhance the region's renewable energy capacity, furthering Austria's transition towards climate neutrality and bolstering energy security amid Europe’s shift away from fossil fuels.

The total investment, exceeding €600 million, will be channeled into two major hydropower projects: the Ebensee pumped storage power plant and the planned run-of-river hydropower plant in Roitham/Traunfall. These initiatives mark a pivotal step in ensuring a sustainable and resilient energy supply for Upper Austria.

Ebensee Pumped Storage Power Plant: A Green Battery for Austria

The Ebensee pumped storage power plant, the largest single investment in Energie AG Oberösterreich's history, is designed to function as a massive "green battery." By compensating for fluctuations in power generation from intermittent renewable sources like wind and solar, the facility will ensure a stable and reliable electricity supply. The EIB has allocated €320 million for this project, with financing agreements formalized at the bank's headquarters in Luxembourg.

Pumped storage hydropower plays a critical role in modern energy systems, particularly as Europe accelerates its transition toward renewables. By storing surplus energy and releasing it when demand peaks, the Ebensee facility will contribute significantly to Austria’s energy grid stability and reduce reliance on fossil fuels. The plant will also support the European Union’s REPowerEU plan, which aims to reduce dependence on imported oil and gas.

Run-of-River Hydropower Plant in Roitham/Traunfall

Alongside the Ebensee project, Energie AG Oberösterreich plans to construct a run-of-river hydropower plant at Roitham/Traunfall. This facility will replace three aging hydropower plants that have reached the end of their operational lifespan, ensuring continued renewable energy generation in the region.

The EIB has granted preliminary approval for €80 million in financing for this project, with final contracts expected to be signed in 2025. The project is pending approval from the Supervisory Board of Energie AG Oberösterreich.

Leaders Highlight Hydropower’s Role in the Energy Transition

EIB Vice-President Thomas Östros underscored the significance of these projects, stating, “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.”

Energie AG Oberösterreich Chair and CEO Leonhard Schitter emphasized the company’s ambitious sustainability agenda, noting, “Our strategy at Energie AG Oberösterreich has set a course for maximum carbon reduction throughout the entire company. We are committed to investing €4 billion by 2035 in renewable energy expansion and grid development. Additionally, we are making major investments in green hydrogen production.”

CFO Andreas Kolar highlighted the financial planning behind these projects, stating, “The energy sector faces high investment requirements for the transition to a sustainable system. Ensuring long-term financing under optimal borrowing conditions is a key success factor. We are delighted to have the EIB as a strong partner for this challenge.”

Supporting Austria’s National Energy Goals

These investments align with Austria's National Energy and Climate Plan, which targets 100% renewable electricity generation by 2030. The projects are also part of the broader REPowerEU strategy, allowing the EIB to finance a greater share of the total costs than its usual 30-50% threshold.

As Austria continues to expand its renewable energy capacity, the Ebensee and Roitham/Traunfall projects will serve as crucial components of the country’s sustainable energy landscape, helping to drive the transition to a cleaner, more resilient power grid.