Illwerke vkw has confirmed that the planned Lochau hydropower plant will not be included in its Strategy 2040 due to economic concerns.
“The expansion of hydropower will continue to be important in order to achieve Vorarlberg’s energy policy goal of energy autonomy by 2050,” CEO Dr. Christof Germann said. “However, the planning for the Lochau power plant has shown that the project is not economically viable.”
According to the company, the estimated cost of about €840m would conflict with its commitment to keeping the shift to renewable energy affordable for households. “The calculated costs of around €840m would contradict our principle that the transformation to a renewable energy future, and thus energy costs for households, must remain affordable,” Germann said.
As previously outlined to the supervisory board, the company will pursue an alternative approach: developing a mix of wind turbines in Germany and a large battery storage facility in Vorarlberg. Illwerke vkw says this plan can be implemented more quickly and at a lower cost.
The company’s goal is to supply all end customers in Vorarlberg and the West Allgäu region with renewable energy from its own production by 2040. To achieve this, about 1,000GWh of additional balancing capacity will be needed, partly through the acquisition of German wind farms.
Germann added: “We are making good progress with the next acquisition, which will add around 100GWh per year. The simultaneous construction of a large-scale battery storage facility in Vorarlberg with a capacity of 400MWh will ensure the necessary flexibility in the deployment of wind power.”
Earlier this year, the company suspended plans for the Mellenbach small hydropower plant after failing to secure support from the local municipality of Mellau, Austria.
