Switzerland invests to prevent electricity shortages (cross-border guide)

Context

Switzerland should invest four billion francs to prevent an electricity shortage. This is the estimate of Economiesuisse, which reported the figure on the NZZ am Sonntag. The reserve power plant in Birr will cost CHF 2.3 billion. However, the Finance Committee of the National Council criticises the urgency of this measure and argues that less expensive alternatives have not been studied.

According to Economiesuisse, Switzerland is not sufficiently prepared to face an energy crisis. The Birr backup power plant is a crucial project to ensure the stability of the electrical system. Construction of this plant is planned to start in 2025 and finish in 2030. Economiesuisse itself argues that Switzerland should also invest in other measures to prevent electricity shortages, such as energy efficiency in homes and public buildings.

According to an estimate by the Federal Office of Energy (FOEN), Switzerland is expected to increase electricity production by at least 10 GW by 2030 to meet growing demand. This means that Switzerland should build new power plants and increase the production of renewable energy, such as photovoltaics and wind power.

The Finance Committee of the National Council argues that Switzerland should study cheaper alternatives to prevent electricity shortages. For example, Switzerland

Operational details

Investing CHF 4 billion to prevent an electricity shortage could have significant implications for Switzerland. The reserve power plant in Birr will cost CHF 2.3 billion. However, the Finance Committee of the National Council criticises the urgency of this measure and argues that less expensive alternatives have not been studied.

The Swiss government has decided to invest in a 1,200 MW reserve power plant in Birr, in the canton of Bern, to ensure security of electricity supply in the event of a crisis. This project was announced last year and is expected to be completed by 2028.

The Finance Commission of the National Council expressed concern about the urgency of this investment, pointing out that less expensive alternatives have not been studied. The Commission also criticised the fact that the government did not provide sufficient information on the reasons for choosing this option and the alternatives considered.

In Switzerland, electricity is a precious commodity. Switzerland is a country rich in water and geothermal resources, but also in renewable energy resources such as solar energy and wind energy. However, Switzerland is also a country with a high energy consumption, especially in the industrial sector.

Switzerland has already invested in several energy infrastructures, such as the Alpiq power plant in Andeer, canton

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Key points

In the event of a shortage of electricity, Swiss consumers could face tariff increases. To prevent this, Switzerland should invest in new reserve power plants. However, the Finance Committee of the National Council criticises the urgency of this measure and argues that less expensive alternatives have not been studied.

According to the report of the Finance Commission, the cost of building a new reserve power plant could range between 1.2 and 1.5 billion Swiss francs. This represents a significant investment for the country, especially considering that Switzerland already has an advanced and efficient electricity grid.

However, the Finance Commission argues that the option of investing in cheaper alternatives has not been adequately explored. For example, Switzerland could invest in energy-efficient technologies, such as energy-efficient heat pumps, or in energy-saving projects at the household level. According to the report, these projects could reduce electricity demand by up to 10% and reduce greenhouse gas emissions by more than 20%.

Another aspect to consider is the situation of electricity production at the cantonal level. Switzerland is a country with strong renewable electricity production, with 64% of electricity production coming from renewable sources in 2022. However, some cantons such as Canton Ticino or Canton Valais

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Source: rsi.ch