Alliance for an effective financing model for renewable energies

02.04.20 - An alliance of the Swiss energy industry, consisting of the major energy suppliers, municipal utilities and various industry associations, is demanding that the Federal Council provides an effective and market-oriented financing model for renewable energies that will put an end to the current blockade on domestic investments and thereby guarantee security of supply. The demands include a binding development path for renewable energies and the introduction of competitive tenders with a floating market premium, taking into account European regulatory guidelines.

Switzerland's security of supply must be guaranteed in the future. In addition, Switzerland wants to implement the Energy Strategy 2050 and become climate neutral by 2050. In order to achieve these goals, suitable framework conditions must be created for the development of renewable generation capacities in Switzerland. There is currently a lack of investment incentives for the maintenance and expansion of domestic renewable energy. The construction of renewable power plants therefore urgently needs to be accelerated.

On the initiative of AEE SUISSE, companies and industry associations have jointly discussed the key points of a market-oriented financing model that is supported by all parties involved and is based on existing rules. The alliance partners agree that the expansion and increased market integration of the new technologies will make a significant contribution to security of supply at the usual high level. The design of the model also needs to aim in particular at providing incentives to generate electricity in the winter half of the year.

Focus on tenders for large-scale plants

The development path necessary for decarbonisation and the replacement of nuclear energy must be bindingly anchored in the Energy Bill. In addition to the expansion of small-scale plants, it should be achieved through tenders for floating market premiums for large-scale plants. The most favourable offers resulting from the tenders will be entitled to a compensation guarantee for 20 to 25 years at the bid price. The volume of tenders for large-scale plants, which are auctioned several times a year, is to be adjusted annually until the expansion target for 2050 is reached. In view of their proven advantages, the existing financing of small plants with investment contributions should be continued.

Together with the maintenance and modernisation of Switzerland's traditionally strong hydropower base (including small-scale hydropower), photovoltaics, wind energy and biomass should be used to generate electricity. The window for other technologies (e.g. geothermal energy, storage) should remain open.