Interview...
with Univ.-Prof. Dr.
Christian Helmenstein
Professor for Economics at the Seeburg Castle University – Private University (SCU)
Board Member and CEO of the Economica Institute
Chief Economist of the Federation of Austrian Industry
How important is the energy transition for Austria as a business location?
The transformation of the energy system by 2040 will require enormous investments in generation and grid systems. A total of 100 billion euros is to be invested in the energy transition over the next 15 years. By comparison, Austrian industry invests 8 billion euros per year. This shows that the transformation of the energy system can boost the economy. However, the necessary framework conditions are, of course, a prerequisite. The fact is that we need affordable electricity. This calls for an ideal work division across the federal states of Austria. Eastern Austria has excellent conditions for wind power, while the western part of Austria offers ideal conditions for pumped storage due to its topography.
Which specific economic benefits does the Versetz pumped storage bring?
The investment volume for the Versetz pumped storage amounts to around 1.5 billion euros. This investment will generate almost one billion euros in gross value added in Tyrol. That is a very substantial amount. Tyrol accounts for four fifths of the added value generated by construction work. In addition, there will be a considerable boost to the labour market. Around 3,000 people will be working intensively on the energy future over a period of seven years, with several hundred of them on the construction sites themselves. All in all, the project will create 20,000 full-time jobs during the construction period.
In your opinion, how important is the Versetz pumped storage for the future energy system?
The Versetz pumped storage is a key project for the Austrian energy transition and it plays a significant role for the future energy system, which will require not only considerably more energy, but also high flexibility with regard to electricity generation and storage. When in operation, the Versetz pumped storage can feed more than 1 TWh of electricity per year into the grid, mainly from volatile energy sources (photovoltaics and wind power), thanks to its storage function. In doing so, it combines the three essential elements for the energy future: generation, distribution and storage – and all that with the aid of the specific location advantages of Tyrol.
In your opinion, what additional value does the project offer?
The contribution to phasing out fossil fuels is central. Depending on the prices on the international markets, we spend between two and five percent of our total economic output on importing fossil fuels each year in Austria. In the future, Tyrol alone will be able to avoid a real income transfer abroad amounting to around one billion euros per year if it succeeds in becoming independent of these energy sources. Another key aspect is that the Versetz pumped storage will enable savings of up to 590,000 tons of CO2e per year, equivalent to around 70 million euros.
with Dipl.-Ing. Dr.techn. Gerald Zenz
Professor Emeritus at Graz University of Technology
What importance do pumped storage power plants have for the energy transition from your point of view, and what role will they play in the future energy supply?
One thing is clear – the energy transition can only succeed if we are able to provide sufficient CO₂-free electricity. In addition to expanding generation capacity and transmission lines, the major challenge lies in ensuring that exactly as much electrical energy is available at any given moment as is needed. Both surpluses and shortages in the grid can lead to instability and, in the worst case, to a widespread power outage – a blackout. The causes of a blackout are often very complex. However, a stable electricity supply depends on two main factors: facilities that can be deployed very flexibly, and power plants with rotating masses that can stabilize fluctuations in the grid. Just how serious the consequences can be was unfortunately made painfully clear to us recently during the severe blackout in Spain.
Pumped storage power plants are true all-rounders. They can store excess electricity in an instant – and feed it back into the grid just as quickly. When the stored energy is converted back into electricity, these plants achieve an impressive efficiency of around 80% for industrial applications. Each facility is designed for maximum output and large storage volumes. This allows them not only to balance short-term electricity surpluses but also to step in immediately in the event of sudden outages of solar or wind power, reliably covering the demand.
Electricity will play an even more important role in our future energy supply – and to make the energy transition a success in Austria, we will need to roughly double our annual electricity production. Since solar, wind, and other renewable sources do not deliver consistent output, we need reliable ways to balance fluctuations – both in power and in energy volume. This is exactly where pumped storage power plants come in. They can take on this task sustainably, efficiently, and on a large scale – making them a key building block for a stable and climate-friendly electricity supply.
The need for new pumped storage power plants is often debated. What are the key reasons in favour of additional facilities in Austria and Europe?
More electricity from renewable sources also means that production becomes more volatile – often regardless of current demand. That’s why we not only need fast-response balancing options, but also storage systems capable of holding energy over longer periods of time.
Pumped storage power plants are the most effective solution for this. Studies show that storage capacities amounting to just 5 to 10% of annual electricity consumption are already sufficient to ensure a stable and reliable supply – even in the face of major fluctuations in generation.
Moreover, we must not forget that energy supply is a pan-European task. Alpine countries in particular – with Austria at the forefront – can make a significant contribution. Thanks to the large usable elevation differences between two water reservoirs, pumped storage power plants can be operated extremely efficiently, making a vital contribution to a stable electricity supply.
From a scientific point of view, why are pumped storage power plants considered a modern technology, also when looking to the future?
Pumped storage power plants are not a short-term solution but an investment for generations. The energy required for the construction of these plants is in excellent proportion to the electricity they supply throughout their service life – and this applies to all hydropower plants. Their ecological footprint and carbon dioxide pollution are extremely low. Planning is always carried out with a future perspective: structures, machines and electrical plants are state of the art designs, which ensures that they can work reliably over decades. While machinery components often remain in service for 60 years, the building structures themselves can exist for over a century without any problems, making an important contribution to safe and clean energy supply for future generations.
The latest developments, such as plant operation in the hydraulic short circuit and the usage of variable-speed machine sets, show the innovation and adaptability of pumped storage power plants in an impressive way. As a result, they can ideally react to current requirements. The best thing about it is that the reservoir, barrier structure and plant equipment are preserved. They continue to be used in an adapted operational mode.
What are the strengths of pumped storage power plants, especially compared to other storage technologies such as batteries?
Compared to battery storage systems, pumped storage power plants operate in an entirely different league – both in terms of maximum output and the amount of energy that can be stored. Under realistic economic and environmental conditions, batteries simply cannot match this scale. Additionally, many battery systems require rare earths and raw materials, which involve significant environmental impacts and questionable social conditions at the extraction stage.
Pumped storage power plants, on the other hand, offer multiple advantages. They are long-lasting, sustainable, and capable of efficiently storing and delivering massive amounts of energy – and doing so reliably over many decades. Furthermore, the value creation remains within the country: planning, construction, operation, and maintenance generate local jobs and expertise. In this way, pumped storage not only contributes to a secure energy supply but also strengthens regional economies.
with Dipl.-Ing. Michael Holzmann
Dam manager TIWAG
What is measured or monitored at the Gepatsch reservoir, and what happens with the data collected?
There are more than 500 measuring points at the Gepatsch reservoir. The measurements are carried out periodically or within very short intervals. Selected measured values are monitored by qualified staff in the control centre around the clock. If a defined limit value is exceeded, the dam manager on duty is informed. They must then assess the situation and determine what measures need to be taken. An example of a threshold being exceeded is the rise in the groundwater level below the dam due to snowmelt. The information and measurement data collected over the operational year are assessed by the dam manager in an annual report and compared with data from 60 years of operating experience. This annual report is then sent to the responsible authority and its independent experts for review.
What impact do natural hazards have on the safety of the Gepatsch reservoir?
Natural hazards, such as floods, mudslides, rockfall and avalanches, are not rare events in high alpine areas. Therefore, the impacts on the reservoir and dam are examined and assessed. Due to the conservative design of the reservoir dam and the management of the reservoir, these occurrences have no effect on the security. During the summer months, for example, storage volume is kept free to collect floodwater from the intake area of the Gepatsch reservoir and to relieve the pressure on the villages below.
What measures are in place to ensure the safety of the Platzertal reservoir?
The basis for safe operation of the Platzertal reservoir is conservative design, quality-assured construction, thorough maintenance and diligent monitoring. The rear Platzertal valley was explored and assessed in several campaigns and rated as the ideal location for the reservoir. The design and measurement of the reservoir dam follow a time-proven construction which has already been successfully in place for decades at TIWAG with the Finstertal reservoir dam.
with Dipl.-Ing Oliver Rathschüler
EIA expert
freiland Umweltconsulting ZT GmbH
How is the public concretely involved in the environmental impact assessment (EIA) process? How can people get involved?
There are several legally defined steps in the procedure that involve the public.
The first step is making the submission documentation for the project available to the public. All the information and documents are available on the homepage of the EIA authority. In addition, they can be viewed at the EIA authority and in the affected municipalities. During the public disclosure period of at least six weeks, anyone can submit a statement. This statement must be sent to the EIA authority of the Regional Government of Tyrol. Details on how and where statements can be submitted are provided in the announcement of the public disclosure, which is also published in daily newspapers. It is important for those directly affected to express themselves at this point in time in order to protect their rights in the procedure – this is mentioned separately in the announcement. In the environmental impact statement, the experts from the EIA authority then examine not only the project and the submission documentation, but also these opinion statements.
The environmental impact statement prepared by the experts from the EIA authority will also be made available to the public. A detailed statement can then again be made on this assessment. From this stage of the procedure onwards, the opportunity to comment is open to all those who have party status in the procedure.
Until the oral hearing, the EIA authority may offer further opportunities for the submission of written statements. If the EIA authority does not make any arrangements to this effect, a statement can be submitted at any time up to one week before the oral EIA hearing at the latest.
Finally, people who are recognized as parties also have the opportunity to present their concerns at the oral hearing. They can ask questions and present their concerns and objections.
In addition to this legally predefined framework, TIWAG is committed to providing decision-makers and the population in the region with ongoing information on the Kaunertal expansion project. TIWAG offers regular information dialogues as well as information events where experts are available to answer questions about the details of the project.
What are the next steps in the procedure for expanding the Kaunertal power plant?
At the end of March 2025, the project will be submitted to the EIA authority for review and approval. The authority’s experts will then check the documents for completeness. If they are complete, the documents will be made available to the public.
Where and when can I receive information about the submission documentation?
As part of the public disclosure, anyone can view the submission documentation on the website of the EIA authority, directly at the EIA authority office and in the municipalities of the local communities affected. In addition, TIWAG will provide first-hand information on all the details about the Kaunertal expansion project and the EIA at two information events on April 10 in Landeck and on April 25 in Imst.
Who can I contact as a citizen if I have questions about the EIA?
The primary point of contact for the EIA procedure is the responsible EIA authority. In the case of the Kaunertal expansion project, this is the office of the Regional Government of Tyrol. Important information about the EIA in general is available online at www.tirol.gv.at/umwelt/umweltrecht/umweltvertraeglichkeitspruefung/
with Dipl. Ing. Christoph Wulz
Energy industry expert
TIWAG
Could the Kaunertal expansion be replaced by battery storage?
This is not an either/or question. For the energy transition we need short, medium and long-term storage options. With the necessary expansion of renewable energies such as wind power and PV, the need for storage will increase significantly because energy from times of high generation from renewable energies and thus temporary surpluses must be shifted to times of low generation from renewable energies. For a short-term shift, relatively small storage units are sufficient and so batteries represent an alternative. In the long term – i.e. for daily to weekly storage and beyond – (pumped) storage power plants with their enormous storage capacity are a decisive factor in integrating wind and solar energy into the energy system as effectively as possible. In addition, they make an important contribution to stable grids and in turn a secure electricity supply.
There is a proposal to build an additional pumped storage power plant as part of the Kühtai expansion project and to abandon the reservoir in the Platzertal valley. What’s your opinion on this idea?
TIWAG has examined this idea extensively. The conclusion is that the proposed power plants in Kühtai will not create the additional storage capacity required to supply electricity at the required level when the wind is not blowing, or the sun is not shining. Equally, during periods of strong wind or high PV generation, they can only absorb the resulting surpluses for a very limited period of time. This would only focus on a pure increase in performance, but what we urgently need is energy and additional storage capacity. The proposed idea is therefore not comparable with the project in the Kaunertal valley.
A simplified example:
An e-bike has different power levels. With Eco mode you can cover a much greater distance on one battery charge than in Turbo mode. Why is that? In Turbo mode, the e-bike requires more power, so the range is reduced compared to Eco mode.
Let’s translate this to the expansion of the Kaunertal power plant: With the new Platzertal reservoir, TIWAG is aiming to increase storage capacity and in turn the range in order to be able to integrate fluctuating wind and PV generation as effectively as possible, even over longer periods. The proposed idea for expansion in Kühtai, meanwhile, would only increase the performance and not the storage capacity, which would essentially correspond to a reduction in the range of the reservoir in Kühtai.