In order to achieve carbon neutrality, Austria has had to restructure its energy industry and divert funding, regulation and infrastructure towards renewable energy sources; a process that’s been largely successful. In 2023, renewable energy accounted for 87% of the country's total electricity generation; a remarkable achievement that’s built on the country’s investment in hydropower, which in 2022, accounted for 67% of its electricity production. Verbund AG, Austria’s leading electricity provider, plays a pivotal role in this green transition. The company operates around 130 hydroelectric plants, including highly efficient storage power plants in the Austrian Alps and run-of-river plants on major rivers. Verbund covers approximately 40% of Austria's electricity demand and generates 90% of its power from hydroelectric sources. The company’s annual turnover stands at around €10 billion. Hydropower remains a cornerstone of Austria’s energy strategy. As of 2021, over 3,000 hydro energy plants were in operation, providing 14.1 GW and accounting for 54% of the total installed power generation capacity. Although its obvious efficacy, the sector still faced challenges in 2022 when climate change-induced water shortages reduced hydropower output during the summer. To meet its ambitious 2030 energy targets, Austria will need to add an additional 1,500 MW of hydro energy capacity. Austria’s 2020 energy plan outlines several targets aimed at achieving carbon neutrality by 2040. Key goals include phasing out all oil and coal heating systems by 2035, restricting gas heating systems in new buildings from 2025, and developing renewable hydrogen. The plan also calls for a significant increase in electricity capacity, ensuring it is entirely carbon-neutral by 2030, and the installation of 1 million solar systems on private homes by the same year. Additionally, Austria is adjusting its tax system to favor green developments and promote a shift towards more sustainable energy consumption.