20120630-IEA-Energy_Policies_of_IEA_Countries_Switzerland_2012_Review_140页_3mb

Summary of Switzerland's Energy Policies (2012 Review)

Core Content

Switzerland's energy policy, as reviewed by the International Energy Agency (IEA) in 2012, is characterised by a commitment to reducing greenhouse gas (GHG) emissions and phasing out nuclear power. The country has set ambitious goals, including a 20% reduction in GHG emissions by 2020 using only domestic measures and a gradual nuclear phase-out by the end of the operational lifetime of its current reactors. The review highlights the need for Switzerland to ensure energy security and affordability while transitioning to a low-carbon energy system.

Main Views and Key Information

Nuclear Phase-Out

• Decision Context: The 2011 Fukushima Daiichi nuclear accident influenced Switzerland's decision to phase out nuclear power.
• Operational Lifetime: Although Switzerland does not officially define "operational lifetime" for nuclear plants, the phase-out is expected to occur between 2019 and 2034, with larger plants retiring later.
• Impact on Energy Mix: Nuclear energy accounts for 40% of electricity generation, so its phase-out is a significant shift.
• Challenges: The phase-out requires a long-term strategy to ensure sufficient electricity capacity, with gas-fired power plants and renewable sources being key options.

Energy Strategy 2050

• Objective: To substantially reduce final energy consumption and stabilise electricity use by 2050.
• Approach: Focus on energy efficiency, renewable energy, and, if necessary, natural gas.
• Implementation: Legislative proposals are being prepared, with plans to submit them for public consultation in 2012 and to parliament in mid-2013. The new legislation is expected to come into force in 2015.
• CO₂ Taxation: The current system of using a CO₂ tax and grid levy to fund renewable energy and building refurbishment will be replaced by an overall energy tax to better steer demand.

Electricity Market Reform

• Progress Since 2007: Switzerland has made progress in liberalising its electricity market, with the Electricity Supply Law enacted in 2008.
• Market Liberalisation: End-users with more than 100 MWh annual consumption can choose their supplier. Market opening is planned for all customers by 2015.
• Regulatory Framework: The country has an independent regulator (ElCom) and is working to transfer transmission grid ownership to Swissgrid to increase independence.
• Price Mechanisms: Regulated end-user prices are below market spot prices, leading to subsidised consumption and reduced incentives for generating capacity investments. A shift to cost-reflective pricing is recommended.

Decarbonisation of Heating and Transport

• Key Sectors: Oil use in transport and space heating is the main source of CO₂ emissions.
• CO₂ Tax: A CO₂ tax is used to fund decarbonisation efforts in space heating and industry, but more needs to be done to reduce emissions from road transport.
• Transport Policies: Fleet-wide CO₂ limits for new passenger cars will take effect in 2015. Raising transport fuel taxes is suggested as an incentive.
• Public Transport: Switzerland has a well-developed public transport system, and efforts to shift freight from road to rail are ongoing. A distance-related heavy vehicle fee has been adopted.
• Heating Sector: The buildings sector is a major emitter due to high oil use. Heat pumps and renewable energy sources are recommended to reduce emissions and insulate against oil price volatility. The building refurbishment programme is being accelerated.

Energy Efficiency and Climate Change

• Efficiency Measures: Switzerland has implemented stringent and harmonised standards for energy efficiency in new buildings, reaching the level of the Minergie labelling system.
• CO₂ Reduction: The country is making progress in reducing emissions through the CO₂ tax and efficiency policies.
• Need for Alignment: Energy efficiency policies should be aligned more closely with those of the European Union to enhance effectiveness.

Energy Relations with the European Union

• Market Integration: Switzerland is negotiating an agreement with the EU to align electricity market rules and ensure compatibility.
• Cross-Border Integration: The country's hydropower capacity and reservoirs can support regional energy integration, which should be pursued further.
• Market Coupling: Improved cross-border capacity management and market coupling are recommended to enhance reliability and efficiency.

Oil and Gas Security

• Diversification: Oil supply is well-diversified across countries and routes.
• Emergency Stocks: Switzerland holds emergency oil and gas stocks significantly above IEA requirements.
• Storage and Security: Due to the lack of domestic fossil fuel production, Switzerland relies on emergency stocks and dual-fired users to maintain security.

Public Awareness and Policy Communication

• Price Increases: The review suggests that energy prices may rise due to CO₂ reduction, nuclear phase-out, and grid investments.
• Public Consultation: In a country with strong direct democracy, public awareness and communication are crucial to support policy changes and manage expectations.

Key Recommendations

• Legal and Regulatory Framework: Develop a legal and regulatory framework for the Energy Strategy 2050 to ensure stable long-term conditions for energy market participants.
• CO₂ Reduction Strategy: Adopt a detailed, cost-effective strategy for reducing domestic CO₂ emissions.
• Investment Incentives: Improve incentives for investment in electricity grids and generating capacity by deregulating end-user prices, simplifying licensing procedures, and encouraging cross-border market integration.
• European Alignment: Pursue closer integration with European energy markets and align energy policies with those of the European Union.

Conclusion

Switzerland's energy policy is ambitious and forward-looking, with a clear focus on reducing emissions and phasing out nuclear power. The country is at a critical juncture in its energy transition, requiring careful planning, regulatory reform, and enhanced market integration to ensure security, affordability, and sustainability. The IEA encourages continued efforts in these areas to support Switzerland's long-term energy and climate goals.