Secure power supply with renewable energies

To achieve the goals of the Energy Strategy 2050 and Switzerland's long-term climate strategy, comprehensive electrification is needed in the transport and heating sectors. To this end, domestic electricity generation from renewable energies must be expanded rapidly and consistently. Grid and electricity supply security must also be strengthened with further specific measures. With the Federal Act on a Secure Electricity Supply with Renewable Energies, the Federal Council is proposing the necessary amendments to the Energy Act and the Electricity Supply Act. It thus creates a legal framework that provides planning security and investment incentives for the expansion of renewable electricity production and its integration into the market.

Main contents of the template

Target values: The Energy Act now contains binding target values for the years 2035 and 2050. The target values specify the targeted expansion of hydropower and other renewable energies as well as the reduction of energy and electricity consumption per capita. This makes the law more bindingly aligned with the goals of security of supply and climate policy, thus creating planning security for investments.

Funding toolsThe current support instruments for renewable electricity production are limited until the end of 2022 and 2030. They will now be extended to 2035 - aligned with the statutory target value of 2035 - and designed to be more market-oriented. For example, large photovoltaic plants are to be promoted by means of competitive tenders. The feed-in tariff system will be phased out as planned and replaced by investment contributions. This will ease the administrative burden and enable more new capacity to be built per franc of subsidy. More financial resources are available for large hydropower plants. The support instruments will continue to be financed via the grid surcharge of 2.3 centimes per kilowatt hour. The grid surcharge will not be increased, but will be levied for a correspondingly longer period.

Longer-term security of electricity supply in winterEven after the phase-out of nuclear energy, Switzerland's current self-sufficiency should be maintained. To this end, in addition to the targeted increase in renewable electricity production (target value by 2050: 39 TWh), the addition of 2 TWh of climate-neutral electricity production that can be reliably called up in winter is also required by 2040. The Federal Council wants to finance such plants, primarily large storage power plants, with a "winter surcharge". This is already included in the Electricity Supply Act as a precaution against possible supply security deficits. Electricity consumers will be charged a maximum of 0.2 centimes per kilowatt hour. A strategic energy reserve will also be established. In addition to the mechanisms in the electricity market, this will ensure that sufficient energy is available even towards the end of winter. In addition, the rapid expansion of renewable energies also makes an increasingly important contribution to longer-term security of supply in winter.

Electricity market deregulationThe complete opening of the electricity market strengthens decentralized renewable electricity production. It enables innovative business models (for example energy communities), which are not allowed today in a monopoly, and thus integrates renewable electricity better in the market. End users and consumers who produce electricity themselves (prosumers), producers and electricity suppliers are thus given economically important freedoms. In order to protect small end users such as households from price abuse, there will continue to be a basic supply. In this, an electricity product is offered that consists exclusively of domestic renewable energy.

Network regulation, data and metrologyThe use and expansion of the electricity grids is to become more cost-efficient. To this end, the Federal Council is creating the legal basis to enable end consumers and storage operators to use their flexibility in a way that serves the system, and it is ensuring a more user-friendly tariff system. It will also create a regulatory framework for the exchange and protection of data and the establishment of a national energy data infrastructure with a data hub. In the area of metering, the Federal Council is also clarifying responsibilities and legal freedoms of choice.

Ensuring security of supply in the short term

As a result of the breakdown of negotiations for an institutional agreement with the EU, the planned electricity agreement is also unlikely to be concluded within a reasonable period of time. The Federal Council has instructed DETEC, in collaboration with ElCom and with the involvement of Swissgrid, to analyse the short to medium-term effects on network security and security of supply. In addition, DETEC and ElCom are already in the process of examining any additional measures that may be required to ensure security of supply in the short term. DETEC will report on this to the Federal Council towards the end of the year.

Press release federal government

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