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Swiss Energy Policy

Swiss Energy Policy. Jean-Christophe Füeg Head Int‘l Energy Affairs Swiss-Turkish Economic Forum, Istanbul 5 November 2009. Energy Policy Three Guiding Principles. Federalism Swiss Constitution, Energy Law (1999) Art. 89 Constitution: “… economising and rational use of energy…”

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Swiss Energy Policy

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  1. Swiss Energy Policy Jean-Christophe Füeg Head Int‘l Energy Affairs Swiss-Turkish Economic Forum, Istanbul 5 November 2009

  2. Energy Policy Three Guiding Principles • Federalism • Swiss Constitution, Energy Law (1999) • Art. 89 Constitution: “… economising and rational use of energy…” • Federal State: appliances, vehicles, installations • Cantons: buildings • “Subsidiarity”: i.e. voluntary action and self-regulation first, state regulation as a last resort if voluntary action fails • Direct democracy: Referendum and Popular Initiative • 7 votes at federal level since 2000: • 2000: rejection of 3 proposals for promotion of renewables • 2001: rejection of energy “incentive” tax/ecological tax reform • 2002: rejection of Electricity Market Law • 2003: rejection of two nuclear phase-out proposals • Numerous votes at cantonal and communal levels

  3. Switzerland Energy Mix Much oil, little industry...

  4. 1. step 2. step Full market opening Partial market opening facultative referendum Eligible customers Eligible customers <100MWh with default service provider <100MWh: choice bw. market and default service provider 2009 2014 Electricity Market Opening in 2 Steps

  5. TWh 100 New RES (Solar, Wind, Biomass) 80 Imported Nuclear 60 Fossil Electricity Demand Nuclear 40 20 Hydro 0 2030 1990 2000 2020 2010 2040 2050 Energy Policy Challenges Looming Electricity Supply Gap

  6. Energy Strategy • Adopted February 2007 • Four pillars • Renewable Energies • Electricity Supply Law: Feed-in tariffs as from 2009 • Action Plan (February 2008) • Energy Efficiency • Action Plan (February 2008) • Large Power Plants inevitable, i.e. Gas and/or Nuclear • Speedier permitting (mainly power lines) • Gas-power plants: full CO2 compensation, 50% domestic • 3 nuclear power plant applications filed in 2008: likely referendum around 2013/14 • International Energy Relations • EU main partner. Electricity negotiations since end 2007

  7. Programme “SwissEnergy” • Budget cutbacks till 2008 • Economic stimulus packages • CHF100M for building refurbishment • CHF 30M for district heating • CHF 10M for replacement of electric heating systems • CHF 10M for solar PV • Huge cantonal variations

  8. Million CHF. 350 300 250 200 150 100 50 0 Small hydro Solar PV Wind Biomass Total Approved Feed-In Tariffs Legal Cap Renewable Energy • Electricity Supply Law (2007) • Cost-covering feed-in tariffs • Twelve-fold increase of feed-in tariffs as from 2009 • Financed through 0.45 cent/kWh grid levy • Debate about lifting cap on PV • Action Plan • Mostly heat production and biomass • Should raise share of RES in primary energy from 16 to 24% • Biofuels • Fiscal incentive, no target

  9. kW kW 35 35 26 26 10 10 Small hydro 50 50 30 30 21.2 21.2 300 300 15.6 23.3 15.6 23.3 12.4 12.4 19.6 19.6 1‘000 1‘000 10‘000 10‘000 8 8 13 13 freistehend freistehend - - angebaut angebaut - - integriert integriert 65 65 75 75 90 90 10 10 PV PV 79.3 79.3 57.7 57.7 68.3 68.3 30 30 53 53 63.9 63.9 70.7 70.7 100 100 50.3 50.3 64.9 64.9 61.3 61.3 300 300 zum Bsp. zum Bsp. 17 17 20 20 Wind Wind Geotherm Geothermal 30 30 5000 5000 28.5 28.5 10‘000 10‘000 24.8 24.8 20‘000 20‘000 22.2 22.2 30‘000 30‘000 zum Bsp. zum Bsp. Rp Rp /kWh /kWh 30 30 50 50 10 10 20 20 40 40 60 60 70 70 100 100 80 80 90 90 Feed-in Tariffs (1)

  10. kW kW 12 12 17 17 (bei Marktpreis 8 (bei Marktpreis 8 Rp Rp /kWh /kWh ) ) Waste incineration ( ( Fkt Fkt . EW) . EW) 12 12 24 24 Sewage plant ( ( Fkt Fkt . KW) . KW) 8 8 20 20 Holz Holz Biomass Biomass Landwirtschaft Landwirtschaft 27 27 24 24 39 39 25.8 25.8 22.8 22.8 37 37 22.8 22.8 31.4 31.4 19.8 19.8 19.4 19.4 16.4 16.4 21.1 21.1 15.7 15.7 18.7 18.7 . 15 15 Biogas Biogas 10 10 20 20 30 30 Rp Rp /kWh /kWh 40 40 50 50 Feed-in Tariffs (2) (ohne WKK-Bonus)

  11. Energy Efficiency Legal Instruments and Programmes since 1990 • “Energy2000” (1991-2000) • Lessons: • Voluntary measures not sufficient • Need for harmonisation of cantonal policies & measures • CO2 Law (2000) • Target: -10% CO2 emissions • 2 Sub-targets: -15% stationary, -8% transport emissions • Transport sector: “Climate Cent” (1 €¢/liter => CHF 100M fund) • Stationary sector: CO2 tax as from 2008 • “SwissEnergy” (2001-2010) • Cap electricity demand growth at 5% during 2001-2010: + 9.7% 2007 vs 2000! • Action Plan (February 2008) • Max. 10% electricity demand increase by 2020 vs. 2000 • -20% fossil energy demand by 2020 vs. 2000 • Energy Law Amendments: Tightening norms and regulations

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