ENTSOG GRIP SNC 2014-2023

4.2.5 POWER PRODUCTION IN SWITZERLAND

As shown in Figure 4.10, Swiss power generation experienced a small decrease from 2009 to 2011, followed by a recovery in 2012 near to pre-crisis level. It is inter- esting to note that power generation is currently driven by two major sources: renew- able sources, especially hydroelectric production (slightly more than half of the total) and nuclear (around 40%). Fossil fuels slightly decreased their already limited share, with natural gas playing a leading role (94% of fossil fuels contribution).

75000 GWh/y

60000

45000

30000

15000

0

2009

2010

2011

2012

Natural Gas

Hydro + Pumps Waste

Wind Biofuels

Solar (PV & Thermal) Nuclear

Oil

Figure 4.10: Power Generation in Switzerland by source 2009 – 2012 (IEA source for 2009 – 2011 data and elaborations on Swiss Federal Office of Energy data for 2012)

After the Fukushima incident, the Swiss government decided to phase-out nuclear power production (the first nuclear power plant will be shut down in 2019). Hydro- electric resources are already well-exploited, and there is virtually no more potential, so it is highly likely that gas-fired power plants will fill the gap. However, at current gas prices the realization of relevant CCGT installed capacity depends on an adequate coverage of fixed costs (capacity payments). Another solution could con- sist in electricity import, considering the overcapacity potential for power production in the rest of Europe. In any case, a large part of this excess import potential is dependent on non-controllable power injections (e.g. wind) and further electricity network grid expansions are required. Notwithstanding the low volumes currently destined for electricity energy produc- tion, 2012 marked a historic record for natural and biogas overall consumption in Switzerland, with a growth of +5.4% compared to the previous year (biogas perfor- mance was even outstanding – with +12% on year-to-year basis – but volumes are still very limited in absolute terms compared to the total). 1)

1) The Swiss gas market reached the size of near 4 GWh in 2013 (39.96 billion kWh, source: ASIG Swiss Association of Gas Industry), of which 97 million kWh came from biogas. The main use is for residential consumption and CNG for vehicles. Main import sources are EU and Norway (about two-thirds of the total) and Russia (covering nearly a quarter of the demand).

South-North Corridor GRIP 2014–2023 |

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