Austrian distribution tariff hikes could hit gas storage, dent traders
Austrian energy regulator E-Control is consulting on hiking distribution tariffs, including those related to storage. If approved, the levy for a typical 90-day storage product
Mitigating tariff risk in battery energy storage system (BESS) projects is crucial for ensuring project financial viability, as tariff changes can significantly affect cost structures and overall project economics.
There have also been indications that the US administration may consider other tariff proposals impacting energy storage, such as a 10–20% universal tariff, tariffs of up to 60% across the board on Chinese-origin goods, and tariffs of 25% on Mexican and Canadian origin goods.
Energy producers in the United States face lower returns for clean technologies under tariff scenarios. Wind energy costs are likely to be less affected than solar, and, regardless of tariffs, natural gas is likely to be an increasing part of the US energy mix because of its low cost combined with rising energy demand.
With respect to energy storage development—and particularly, the supply of batteries and components—which were a priority over both the Trump-Pence and the Biden administrations, it seems more likely that tariffs would be utilized as regulatory control rather than a negotiating tactic.
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