BKW FMB Energy Ltd Annual Report 2003

electricity industry structure. Clarity and
transparency are important criteria for an
effi ciently functioning market.
Growth in production and
domestic consumption
In the hydrological year 2003, the volume
of electricity generated in Switzerland
rose from 64,428 GWh (2002)
to 67,168 GWh. In particular, reservoir
power stations increased production from
19,451 GWh (2002) to 21,514 GWh, and
nuclear power plants produced a record
25,928 GWh (2002: 25,608). This refl ects
the importance and reliability of nuclear
power plants, which in 2003 accounted
for no less than 40 percent of total Swiss
electricity production. Electricity imports
from neighbouring countries amounted
to 40,975 GWh, while exports totalled
46,373 GWh. Domestic consumption
rose from 58,097 GWh in 2002 to 58,888
GWh. As in previous years, domestic
consumption during the winter months
signifi cantly exceeded domestic production.
To ensure national security of supply,
substantial volumes of electricity had to
be imported from neighbouring European
countries during this period.
12
Flexibility and reliability:
key success factors
Market performance in the year under
review was dictated by the extraordinary
climatic conditions. The cold snap at the
beginning of the year resulted in an increase
in electricity consumption at home.
The heat and dry period during the summer
months prompted sales of Swiss electricity
to southern Europe. The heat wave
caused an increase in glacier run-off into
alpine reservoirs, allowing Swiss reservoir
power stations to produce and export additional
electricity at peak times. At the
same time the extended drought led to a
drop in production by water-cooled nuclear
and fossil fuel power plants abroad,
thereby affecting electricity production in
a number of countries
The Swiss electricity industry in general,
and BKW and its partner plants in particular,
took full advantage of these extraordinary
climate conditions. As a consequence
of the unusual weather, spot market prices
increased in international trading. Thanks
to the fl exible use of power plants and
increased water volumes, the industry
was able to meet the rising international
demand for electricity without having to
replenish reservoirs and diminish national
security of supply.