Mar 28, 2025
Kelag plans to invest 3.8 billion euros in the transformation of the energy system by the year 2034.
Austrian energy firm Kelag is set to invest EUR 3.8 billion (USD 4.1 billion) by 2034 to overhaul the energy system, concentrating on enhancing locally accessible renewable energy sources.
In 2025 alone, the company will allocate EUR 460 million as part of its green investment initiative. This funding will be directed toward generating renewable energy from wind, solar, and hydropower, modernizing the grid, and expanding heat generation through biomass and industrial waste heat.
This funding surpasses the nearly EUR 400 million earmarked for investments in 2024. Last year, the emphasis was on hydropower, solar, and wind energy projects, as well as boosting the grid and fiber optic infrastructure and developing sustainable district heating networks.
The investment plans were disclosed following the company's report of a net profit of EUR 438 million for 2024, a decrease from EUR 462 million the previous year. Simultaneously, revenues dropped to EUR 1.98 billion from EUR 2.22 billion, primarily due to a challenging economic climate and declining energy market prices.
Kelag anticipates that earnings will continue to decrease in 2025. In addition to falling prices, the performance may be adversely affected by new regulatory measures, such as a EUR 200 million annual fee that the Austrian government intends to levy on energy suppliers. Moreover, Kelag expects diminished profit contributions from its stake in Verbund Hydro Power GmbH.
In 2025 alone, the company will allocate EUR 460 million as part of its green investment initiative. This funding will be directed toward generating renewable energy from wind, solar, and hydropower, modernizing the grid, and expanding heat generation through biomass and industrial waste heat.
This funding surpasses the nearly EUR 400 million earmarked for investments in 2024. Last year, the emphasis was on hydropower, solar, and wind energy projects, as well as boosting the grid and fiber optic infrastructure and developing sustainable district heating networks.
The investment plans were disclosed following the company's report of a net profit of EUR 438 million for 2024, a decrease from EUR 462 million the previous year. Simultaneously, revenues dropped to EUR 1.98 billion from EUR 2.22 billion, primarily due to a challenging economic climate and declining energy market prices.
Kelag anticipates that earnings will continue to decrease in 2025. In addition to falling prices, the performance may be adversely affected by new regulatory measures, such as a EUR 200 million annual fee that the Austrian government intends to levy on energy suppliers. Moreover, Kelag expects diminished profit contributions from its stake in Verbund Hydro Power GmbH.