SAG 2025: Application Window Opened (EU Notification Pending)

In connection with the Standortabsicherungsgesetz 2025 (SAG 2025), the six month application window for the 2025 funding year was opened today (provisionally 13 April 2026 to 13 October 2026), subject to the successful state aid approval by the European Commission, which is not yet completed. With the Industrial Electricity Bonus, funding of 150 million euros is available for the legally defined sectors for the years 2025 and 2026. Administration will be handled by Austria Wirtschaftsservice Gesellschaft mbH (aws) – applications must be submitted via the aws funding manager. The approval period is generally 1–3 months.

At the same time, the provisional funding guideline is being published, which will serve as the essential basis for applications until final approval is granted by the EU. The final design of the funding scheme may therefore still change if necessary.

Core Content of SAG 2025

The Standortabsicherungsgesetz 2025 (SAG 2025) – as the successor to the Electricity Cost Compensation Act 2022 – establishes a temporary funding instrument for the years 2025 and 2026 to provide relief to particularly energy intensive companies. It is based on the EU Emissions Trading Directive and aims to partially compensate the rising electricity prices (indirect CO₂ costs) caused by emissions trading. At the same time, it aims to prevent carbon leakage and safeguard Austria’s competitiveness in energy intensive industries.

Funding is provided in the form of a direct grant of up to 75% of indirect CO₂ costs and is aimed at companies in selected sectors such as steel, aluminium, chemicals, paper, glass fibres, copper, plastics, and industrial gases, which are defined by corresponding NACE codes (as per Annex 1, SAG 2025). For the years 2025 and 2026, a budget of 75 million euros per year is available; if the total applications surpass this volume, proportional allocation of all submitted applications will take place (no first come first served principle). As part of the application, confirmation by an auditor or tax advisor regarding the underlying information and the calculation of the state aid is required.

A prerequisite for funding – in addition to an annual electricity consumption of more than 1 GWh – is the completion of an internal or external energy review by no later than 30 November 2026, as well as the obligation to implement energy efficiency and decarbonisation measures. Still essential – including in the provisional guideline – is the new reinvestment obligation, which did not exist under the previous SAG 2022; accordingly, 80% of the funding amount must be reinvested within 60 months, with at least 50% allocated to energy efficiency measures.

Implementation must take place within 60 months from the granting of funding. Applications for 2025 may be submitted within six months after approval by the European Commission (provisionally 13 April 2026 to 13 October 2026); applications for 2026 must be submitted between 01 January 2027 and 30 June 2027.

Recommended Actions for Energy Intensive Industrial Companies

Despite the still pending final approval, companies should actively use the open time window:

1. Prepare applications early
   · Review funding eligibility and prepare the data basis (electricity consumption, production volumes)
   · Obtain/submit a valid energy audit
   · Prepare the documents required under §6 SAG 2025 related to energy efficiency and decarbonisation measures (§ 6 SAG 2025)
   · Apply the relevant benchmarks
   
   
2. Align investment planning
   · Confirm that planned investments meet the 80% / 50% requirements
   · Establish an evidence and monitoring system
   
   
3. Integrate review processes
   · Coordinate with the auditor regarding the confirmation pursuant to KFS PG 14
   · Prepare documentation suitable for review already in advance
   

Conclusion

The opening of the application window marks the operational start of SAG 2025 – however, still subject to state aid related approval. The provisional funding guideline provides initial clarity and enables timely applications, but due to the lacking notification, it still does not provide the necessary legal certainty. Accordingly, the current situation regarding SAG 2025 requires careful handling of the content published so far and of potential changes during the ongoing approval process.

For energy intensive industrial companies, the following applies:

Now is the right time to prepare applications, collect data, finalise the energy review, and strategically align investment measures to make the best possible use of the funding potential while minimising compliance risks.