Moving into the future through innovation: Stegenwald Salzach power plant sets new standards in hydropower and environmental integration.

Today, VERBUND and Salzburg AG will celebrate the opening of the new Stegenwald Salzach power plant in the presence of Federal Minister Wolfgang Hattmannsdorfer and Governor Karoline Edtstadler. This innovative hydropower plant is another milestone for the energy transition in the state of Salzburg and is a model for future developments in the field of hydropower. With an investment of 100 million euros and a record construction time of just two and a half years, the power plant supplies 74 gigawatt hours of predictable green electricity annually to around 20,000 homes.

Salzach’s Stegenwald power plant is the seventh power plant to emerge from the successful partnership between VERBUND and Salzburg AG. Together, all of these power plants are contributing to Salzburg’s climate and energy targets and increasing energy resilience in the state.

At the opening, VERBUND CEO Michael Strugl emphasised: "The construction and initial operation of the Stegenwald Salzach power plant is a success story and shows how technical expertise and close collaboration between project partners VERBUND and Salzburg AG is producing excellent results. Construction was completed on schedule and within the cost plan despite numerous challenges, such as the flood of the century in August 2023 and a temporary halt to construction last year.

But Stegenwald also shows that it took around five times as long to gain approval for the power plant than to actually build it. This must change in the interests of our energy security and climate neutrality. We need faster procedures and simpler framework conditions. Clear laws need to be implemented. Only by having a reliable framework can we raise the necessary funds and implement our projects efficiently. If it doesn’t happen faster, it will take longer and cost more."

Federal Minister Wolfgang Hattmannsdorfer said: "The Stegenwald power plant sends a clear signal for a pragmatic and technology-open energy policy. Our goal is to ensure security of supply, competitiveness and affordable energy prices over the long term. Hydropower is one of the pillars supporting our energy system. This project is an example of how we organise the energy transition in a proportionate way: regionally based, economically viable and sustainable.

With an investment of 100 million euros, Stegenwald is not only a strong site project, but also an important building block for the hydropower expansion targets as part of the Renewable Energy Development Act (EAG). This will strengthen our energy independence and lay the foundations for stable electricity prices."

"The permits for the Stegenwald power plant took five times as long as the construction work itself. This is a mandate for us to make processes more efficient and faster, and to secure and expand Salzburg as a business location," says Governor Karoline Edtstadler.

"Over the next few years, we will invest more than 1.5 billion euros across our six strategic ambitions — which will play a large role in transforming the energy system. In doing so, we hope to almost double our own renewable energy generation. Together with VERBUND, we have taken an important step in this direction by establishing the Stegenwald power plant," says Michael Baminger, CEO of Salzburg AG.

"The opening of the Stegenwald power plant is a significant milestone for energy generation in Salzburg. Stegenwald is a strong signal for the sustainable development of our region in terms of renewable energy generation and creating value in the region. This not only strengthens our independence, but also acts as a stimulus for the local economy," adds Herwig Struber, Executive Board of Salzburg AG.

VERBUND COO Achim Kaspar highlights the reliability of the hydropower: "Today, the Stegenwald Salzach power plant represents a new generation of hydropower plants: efficient, environmentally friendly, species-friendly and future-proof. It is a prime example of how modern technology and environmental responsibility can go hand in hand. Although climate change also poses challenges for hydropower, it remains an indispensable part of the fight against global warming – especially if extreme weather such as drier summers and rainier winters persist. The future of hydropower in Austria’s alpine rivers is also secured for the next hundred years."

Creating value in the state

The regional value created by the construction of the Stegenwald power plant is impressive: more than 80% of the investments go directly to the region and to Austria.

The Salzburg branch of the Bodner company carried out the architectural work, while local companies such as Deisl, SSK and Ehrensberger supplied concrete and stone. The Kuchler family company GMT-Wintersteller manufactured all the hydraulic steel components in the Salzburg region – a volume of orders that otherwise is often placed abroad. The generator sets were supplied by Global Hydro from Upper Austria, while Elin and Siemens, together with their Salzburg branch offices, provided the electrotechnical equipment.

These regional awards also minimise transport routes and relieve pressure on the public road network.

Technical and ecological innovations in hydropower

What makes this hydropower plant special is an innovative overall concept: the Kaplan turbines were installed for the first time and allow simultaneous use of the turbine fields for flood relief. In the event of a flood, around 20% more water can be removed as the powerhouse is flooded. The landscape also benefits from this construction method. The innovative concept reduces construction time by a quarter compared with conventional river-based power plants of this magnitude.

The Stegenwald hydropower plant in Salzach is also focusing on innovative solutions in the ecology sector. This approach breaks new ground in terms of both water supply and current velocities in the storage space. Thanks to the optimised elevation of the river bed, the damming area achieves current velocities and water depths that are particularly suitable as habitats for fish.

Due to the cramped location between mountains, highway and railway, this stretch of the Salzach River offered hardly any living space for fish. The Stegenwald power plant has made a positive, sustainable change for the long term. The redesign of the old riverbed began in mid-February 2025 and a new, vibrant, nature-orientated bypass was created over a distance of around 500 metres and a width of up to 60 metres. The largest fish pass on the Salzach River creates new habitats for fish, wildlife and birds with its banks, making this section of the Salzach environmentally friendly.

It is the central element of a large number of environmental measures that have been implemented throughout the project area, which is around 6 km in length.

VERBUND Hydropower Managing Director Michael Amerer and Karl Heinz Gruber emphasise that hydropower and ecology complement each other: "biodiversity, climate change mitigation and energy security should not be considered as “either-or” solutions. Climate change mitigation in the form of carbon-free hydropower also protects species that would be lost due to global warming. Hydropower is also proving day after day that it is part of the solution to the issues of the future. Here in Stegenwald, around 500 ecological measures have created new habitats for frogs, dragonflies, birds and a variety of plants. In the coming months and years, a team of experts will monitor and document the effectiveness and efficiency of the environmental measures. This will ensure that the Stegenwald power plant won’t just be known for its clean energy, but also for its positive impact on nature."

Opening ceremony

During the ceremony, numerous guests from the fields of politics and business, as well as local residents gathered to celebrate the opening of the Salzach power plant together with VERBUND and Salzburg AG. Among the guests of honour who shared their congratulations were Federal Minister Wolfgang Hattmannsdorfer, Governor Karoline Edtstadler, Deputy Governor Marlene Svazek, as well as Governor and Chairman of the Supervisory Board of Salzburg AG Wilfried Haslauer, along with numerous mayors from local communities. The atmosphere of the ceremony was set by the traditional band from Werfen and Tenneck, as well as the Struberschützen war memorial.