Austria aims at achieving carbon neutrality by 2040 and 100% of renewables in the power mix by2030. To that effect, Austria seeks to step up its already significant production of hydroelectricity. This will also put pressure on the need for internal energy network enhancements.


Austria is located in south-central Europe, with an estimated population of 8 949 000. Austria occupies an area of 83,871 km2. The nation’s capital is Vienna, the spoken language is German.


At present, 32.8 % of the Austrian energy mix is accredited to renewable energy sources. Oil (36%), gas (21%) and coal (8%) energy sources account for the rest of the energy mix. The importance of bioenergy in Austria has steadily grown in recent years. It is the most important renewable energy source, with a share of 59 %. A total of 1,260 wind power plants in Austria with a total output of 2,844 MW generated clean and environmentally friendly electricity for 40 % of all Austrian households. More than 700 run-of-river power plants and some 3,100 small-scale hydropower stations are in operation, which generate approx. 60 % of Austria’s electricity needs. Austria is number one in Europe when it comes to utilizing hydropower. Solar heat ranks among the sectors with the highest value generation in the country. Within a period of only eight years, from 2002 to 2010, the annual production of solar collectors in Austria increased almost four times over.


Mountains and forests give the Austrian landscape its character, although in the northeastern part of the country the Danube River winds between the eastern edge of the Alps and the hills of Bohemia and Moravia in its journey toward the Alföld, or Hungarian Plain. Vienna lies in the area where the Danube emerges from between the mountains into the drier plains. The Austrian Alps form the physical backbone of the country.


The wooded slopes of the Alps and the small portion of the plains of southeastern Europe are characterized by differing climatic zones. The wetter western regions of Austria have an Atlantic climate with a yearly rainfall of about 1,000 mm; the drier eastern regions, under the influence of the more continental type of climate, have less precipitation. In the lowlands and the hilly eastern regions, the median temperature ranges from about 1 °C in January to about 20 °C in July. 


Austria is a well-developed market economy with skilled labour force and high standard of living. It is closely tied to other EU economies, especially Germany’s. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.

Austria’s strong economic growth of recent years slowed in 2019 and is expected to remain moderate in 2020-2021. Economic disparities between Austrian regions are among the smallest in the EU and have narrowed steadily. While income inequality remains below the EU average, wealth inequality is high. House prices have been growing strongly, driven mostly by developments in Vienna.

Unemployment rate: 7.35% (2019 est.), 7.7% (2018 est.)


Austria has a dense road system inherited from its centuries as the hub of a vast continental empire. It has a highly developed transportation infrastructure of highways, passenger and freight trains, waterways, and air services. The Danube is the most important river connection between Germany and the Black Sea, and both freight and passenger vessels travel along this waterway. Although Austria is landlocked, its shipyards build vessels for Austria and for other countries.