Policy Analyses of Options for Implementing the Swiss Energy Strategy

Abstract

Switzerland has set ambitious targets towards a nuclear- and carbon-free electricity system. The Swiss Energy Strategy 2050 aims to increase the generation of domestic non-hydropower renewable electricity from the current of 5% to about 20% of the electricity consumed nowadays. Of this 20%, the strategy foresees about a half coming from solar and wind domestic electricity, and the other half from biomass. The Swiss strategy also targets to reduce electricity demand, and to maintain existing natural gas power plants. Although gas plants would supply a small share to the total electricity demand, they would not reduce CO2 emissions in the Swiss electricity system. The successful implementation of the aforementioned energy targets may pose two challenges for the energy transition. A first challenge that follows from the increase of solar and wind electricity production is how to maintain supply reliability with an increased variability in production. Balancing fluctuations in electricity supply and demand while eliminating CO2 emissions in the electricity system requires new solutions. Balancing electricity supply and demand is even more challenging if we want to avoid an increase in electricity production costs. A solution to maintain a reliable electricity system would include imports, although imports may be seen by the public as a dependence on foreign countries. A second challenge for the increase of domestic renewable electricity production is to reduce public opposition to the infrastructure that comes along with such projects. Public opposition to renewable energy infrastructure can delay or obstruct the implementation of renewable energy projects and therefore the fulfilment of policy targets. This thesis tackles a set of complementary but linked questions that follow from the challenges associated with the energy transition in three complementary contributions. Contribution 1 explores what are the trade-off between electricity cost and reliability in a system with high shares of renewables. To that end, this thesis examines the need for natural gas to balance the electricity supply in a system with high shares of renewable electricity. It also examines supply reliability and electricity costs in an electricity system with different levels of carbon emissions. I tackle these two questions using an electricity system model to analyze three policy scenarios for the Swiss electricity system: carbon-free, gas-intensive, and gas as a bridging fuel. The results show that it is possible to reliably supply electricity with a carbon-free system at a cost comparable to that of a system that uses natural gas. This is possible by building domestic renewables and up to 30% imported renewables, either offshore wind from the North Sea or Concentrated Solar Power from Morocco. Contributions 2 and 3 explore what are the stakeholders’ reasons to accept and oppose the increase of renewables. I study stakeholders’ opinions at different levels of the government in the decision-making process of key renewable electricity projects. To tackle this question, I use Q methodology to extract perspectives on what matters to stakeholders in the implementation of the specific renewable energy project in the current situation and time. Concretely, I study drivers and barriers for the increase of renewables that could derive from stakeholders’ perspectives during the implementation of two renewables projects in rural Switzerland. Contribution 2 studies a small hydropower plant, and reveals three major stakeholders’ perspectives. Energy policy preferences varied amongst local, cantonal and national levels in the federal system. While local stakeholders are pro production of electricity, national stakeholders are pro efficiency. The results show that there is still the risk that stakeholders divert away from the increase of renewable electricity production, because they prioritize different policy targets. I conclude that inclusive and exclusive, national and local interests must be analyzed carefully, and prioritized according to the local characteristics of the project. The barriers to the implementation are rooted in the numerous administrative bodies in the federal system, e.g. dissatisfaction with delays and complexity in decision-making process. Contribution 3 studies a pilot photovoltaic project in the Swiss Alps, and reveals four major stakeholders’ perspectives during the implementation process. The results show that stakeholders perceive cost-benefit and technology barriers very differently (e.g. rising costs during the decision process, final project profitability, and unsuccessful funding activities). The results also show the important role of project’s initiators to maintain trust during the decision-making process. Stakeholders are more concerned about barriers during the implementation than about negative outcomes of the project. The project’s contribution to the regional and local economy was found to be the major driver for stakeholders to engage in the implementation process. Overall I conclude, that while from a technical standpoint, a 100% renewable electricity system can indeed be reliable and cost effective, it is crucial to overcome barriers at the phase of the local implementation of projects for a successful energy transition.