Increase supply security as economically as possible!

Contractually secured strategic reserves, certificate-based performance obligations and a diversified power plant network offer addtional means for increasing supply security over the medium term. In the longer term, Switzerland’s generation capacity needs to be expanded.

According to the joint project “Assessing future electricity markets”Project “Assessing future electricity markets”, the current market design of the Swiss electricity system with the “energy-only market” and backup in the form of control energy is suitable for ensuring the existing level of supply security in the medium term Four core elements of a functioning electricity market. Switzerland has adequate generation capacity. However, if Switzerland wants a level of backup that goes beyond the current level of supply security – for example due to an expected decline in the availability of electricity or political risks relating to readiness for delivery in neighbouring countries – it will need to develop new production capacity domestically.

A means of covering risks of a limited magnitude can be provided by a strategic reserve and performance obligations. A strategic storage reserve is not tied to investment incentives and is therefore more cost-efficient than a capacity market. To bring this solution into effect, the clear structuring of the competences and responsibilities of individual stakeholders must be ensured, which is not the case at present.

According to Swissgrid, additional generation capacity will be required in Switzerland sooner or later irrespective of the utilised technologies.Revision of the Federal Electricity Supply Act: Swissgrid welcomes the political debate on security of supply, press release of 31 January 2019, and Swissgrid answer to the revision of the Federal Electricity Supply Act (in German) of 28 January 2019. The urgency for the provision of this capacity can be mitigated by various measures such as “demand-side” management. Either way, imports from and exports to our neighbouring European countries will also continue to play an important role in future market situations. They require an adequate and well-functioning link to the European market processes.

All information provided on these pages corresponds to the status of knowledge as of 09.09.2019.
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Supply: further develop the electricity mix

To considerably increase the share of new renewable energy, first and foremost it is politicians who need to take action. They need to ensure the provision of efficient support in the form of flexible instruments tailored to the market maturity of the individual technologies. This also includes the broad use of CO2 levies and better framework conditions for local organisational models such as self-consumer energy communities. New renewable energy needs to be integrated in the electricity system and gradually transferred to the free market.

Demand: make consumption more flexible

Alongside the grid expansion, the issue of demand must also be addressed if the long-term stability of the Swiss electricity system is to be assured in a cost-efficient manner. Electricity consumption should be coordinated flexibly in line with the growing volatility observed in the electricity supply. Decentralised storage solutions can foster the desired flexibility. ESCs need to develop instruments aimed at steering demand, while politicians are required to create the framework conditions required for this.

Supply security: secure access to the European market

Without access to the European electricity market, the costs for supply security will increase considerably. The electricity agreement with the EU is therefore key. In order to counter the supply risks from abroad that will increase one way or another, politicians must also develop the most economic solutions possible.

Strategy implementation: consistency in the electricity system and pragmatic solutions

In order to prevent contradictions and redundancies during the targeted transformation of the electricity system, the worlds of politics and administration must develop a strategy that is consistent across all levels. This will require the willingness of the various interest groups to reach pragmatic compromises in the interest of the system as a whole. The overall strategy must, however, leave freedom for experimentation.

All information provided on these pages corresponds to the status of knowledge as of 09.09.2019. Publication details.