New energy forms are becoming increasingly important.

Axpo plans to invest around 3 billion francs in new energies up to 2030. In Switzerland, these investments focus on biomass, small-scale hydroelectric plants, and in the longer term also geothermal energy. These energy sources can be used to generate valuable base-load power. Axpo is taking responsibility and supporting the Confederation government’s objective of increasing the proportion of electricity production from new energy sources in Switzerland. Axpo aims to achieve a market share in new energies production of approx. 40%, the same high market share that it has in traditional power supplies. With Axpo Naturstrom Fonds, Axpo’s green electricity fund, and through the swisselectric research organisation, Axpo already supports projects conducting research into new energies.

Unlimited availability, seldom utilised

A variety of technologies can be used to generate electricity that is available in unlimited quantities, but seldom utilised. Each technology converts the energy from a primary source (oil, uranium, natural gas, wind, sun, etc.) into the secondary energy, electricity.

With the majority of large-scale technologies, the primary energy source is available in nature only in a limited quantity (e.g. uranium and gas). With renewable energy sources such as wind and sun, on the other hand, the resource is available in infinite quantities or, as is the case with biomass, it regenerates within time periods that are comprehensible for humans. The term ‘new energies’ refers to all the renewable energy sources that have only come into use for commercial electricity generation within the past few years: small-scale hydroelectric plants, solid and liquid biomass, biogas, geothermal energy, wind and solar power.

Known potential, possible constraints

Theoretically, in the long term (from 2050 onwards) the potential for electricity generation from new energies in Switzerland, without geothermal energy, is a maximum of 20 terawatt hours per year (TWh/a), corresponding to 20 billion kilowatt hours (kWh). If the as yet unsecured technology of geothermal energy is included, from 2050 the theoretical potential would be as much as 38 TWh/a. The prerequisite for this, however, would be that development is not constrained as a result of landscape protection, building permit procedures or other special costs.

Today, the share of the new energies in electricity production is still very small – in 2006, at 0.12 TWh a scant 0.2% of Switzerland’s electricity was generated by new energies. By way of comparison, the Confederation government’s target is 5.4 TWh/a by 2030, corresponding to 6% of forecast electricity consumption for that time – a target that is ambitious, but achievable.

Analysis of potential of the new energies

A potentials analysis has shown that the bulk, i.e. 45%, of the theoretical potential for electricity production from new energies in Switzerland comes from geothermal energy. This production technology is currently still in the development stage, and its capacity and its risks are therefore difficult to assess.

Moreover, the electricity output of wind power plants and photovoltaic plants varies enormously depending on weather and time of day, and these technologies therefore cannot supply a constant flow of base-load energy. To ensure an uninterrupted electricity supply, backup power plants need to be built, to generate the missing electricity when there is no wind and during periods of darkness or cloud cover.

The new energies are therefore limited in terms of capacity and quality, and the production costs are high. Axpo expects the share of new energies to reach a maximum of 5.4 TWh/a by 2030. This corresponds to 6% of Switzerland’s future electricity consumption. In other words, even if their share in electricity generation were to increase quite significantly, new energies alone are not sufficient to fill the emerging power supply gap.

Points of criticism: lack of commitment, few subsidies

Switzerland’s electricity producers, and thus Axpo as the biggest producer, have come under fire for not investing enough money in new energies technologies. While substantial sums of money would be available for the construction of major new nuclear and hydroelectric plants, the development of new energies is being moved forward only very slowly. In contrast to countries such as Germany and Denmark, Axpo for the most part does not use wind and solar power in Switzerland. Insufficient government funding of new energies has also been criticised. Funding mechanisms such as these are usually necessary in order to profitably generate electricity from new energies.

Standpoint: plan for market leadership, balanced electricity mix

Axpo believes that new energies have a long-term future, and the group therefore wishes to establish itself as Switzerland’s market leader in the field, with a market share of ca. 40%. As its contribution to ensuring the security of the electricity supply, Axpo is aiming for a balanced electricity mix – including new energies as a priority. In the next few years, Axpo is planning a massive expansion of its capacities in Switzerland and overseas. The company’s activities will be following basic economic principles. In Switzerland, the focus is on the production of base-load energy, above all from small-scale hydroelectric power and biomass plants, and in the longer term also from geothermal energy. In Switzerland alone, Axpo plans investments of around 3 billion francs up to 2030.