The Energy Regulation and Markets Review - Stikeman Elliott

Switzerland
extended and rebuilt and transformation of distribution grids to smart grids will become
compulsory. Optimal connection to the European grid will have to be guaranteed.
According to initial calculations, the cost to the economy for modernising and
constructing power plants and measures to reduce electricity demand amount to about
0.4 to 0.7 per cent of gross domestic product.
In order to cover the shortfall in the electricity supply caused by the decision not
to replace the nuclear power plants, Switzerland’s energy strategy has to be revised. The
Federal Council has therefore set the following priorities:
a Reduction in energy consumption: the new energy outlook shows that the
demand for energy could rise to around 90 billion kWh a year by 2050 if tighter
measures are not put in place (2010: around 60 billion kWh). The main reasons
for this are population growth, increasing duplication of household appliances,
new appliances and applications, greater living space per person, but also the
increasing electrification of transport. The Federal Council therefore intends to
encourage the economical use of energy in general, and of electricity in particular.
Enhanced efficiency measures include minimum requirements for appliances (best
practice, energy label) and other regulations, bonus-malus mechanisms (efficiency
bonus), measures to raise public awareness (strengthening of SwissEnergy) and
measures regarding the production of heat.
b Broadening of electricity supply: hydropower and new renewable energies should
be bolstered in particular. Their share in the current energy mix needs to be expanded
significantly. That is the main aim of cost-covering remuneration for feed-in to
the electricity grid. However, in order to meet demand there also needs to be an
expansion of fossil fuel-based electricity production with cogeneration (combined
heat and power) (firstly) and gas-fired combined-cycle power plants (secondly).
The Federal Council is retaining its climate policy objectives. The increasing share
of irregular power production (wind, solar) requires a restructuring of the pool of
power plants to ensure the necessary storage and reserve capacities. Furthermore,
the conflict of interests between efforts to protect the climate, waterways and
countryside and spatial planning has to be resolved constructively.
c Maintaining electricity imports: imports will continue to be necessary to
ensure security of supply and to cover temporary fluctuations; however, the
Federal Council is of the opinion that Switzerland should continue to remain as
independent as possible in terms of electricity production.
d Expansion of electricity transmission grid: the rapid expansion of the electricity
transmission grid and the transformation of transmission networks into smart
grids is essential for future domestic production infrastructures and electricity
imports. These ‘intelligent’ grids allow direct interaction between consumers, the
network and power producers and offer great potential with regard to optimising
the electricity system, delivering energy savings and consequently bringing down
costs. Switzerland’s power grid should be optimally integrated into the European
grid and the future European ‘supergrid’.
e Strengthening energy research: the restructuring of the energy system needs to
be supported by the strengthening of energy research. To that end, the energy
research portfolio in the ETH (Federal Institute of Technology) Domain and at
the universities of applied sciences should be reviewed and cooperation between
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