The Energy Regulation and Markets Review - Stikeman Elliott

Chapter 23
Switzerland
Georges P Racine 1
I
OVERVIEW
The Swiss energy sector has its own distinctiveness. Switzerland has been referred to as
the ‘Water Tower’ of Europe; indeed, hydropower accounts for about 56 per cent of
electricity production in the country, while nuclear power accounts for about 39 per
cent. Other conventional thermal and ‘new’ renewable energies account for about 5 per
cent. 2
Despite the country’s high dependence on nuclear energy, the Federal Council
has decided to gradually phase out nuclear power. The safe operational lifespan of the
existing nuclear power plants is expected to be about 50 years. On this basis, the last of
Switzerland’s nuclear power plants would be taken offline in 2034. Switzerland seems
to be the only country to have made a complete about turn following the Fukushima
disaster.
The Swiss electricity market has also been described as highly fragmented due
to the number of market participants (about 1,000). Such a high number is peculiar
considering the size and population of the country.
Electricity represents approximately 23.6 per cent of Swiss energy consumption,
while oil and gas represent about 54.5 per cent and 12.7 per cent respectively. Coal,
wood, industrial waste and other renewable energies (biogas, sun, ambient heat, etc.)
constitute the remaining 9.2 per cent. 3
As a landlocked mountainous country and non-EU member, which is located at
the heart of Europe, Switzerland must implement its energy policy wisely. At the same
1 Georges P Racine is a partner at Lalive and a director of Lalive in Qatar LLC. The author would
like to thank Leonor Díaz de Córdova for her assistance in researching materials for this chapter.
2 www.bfe.admin.ch/themen/00612/index.html?lang=en; www.bfe.admin.ch/themen/00490/
index.html?lang=en.
3 http://www.bfe.admin.ch/themen/00490/index.html?lang=en.
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