Trade-offs between integration and isolation in Switzerland's energy policy

P. Eser, N. Chokani and R. Abhari

Energy, 2018, vol. 150, issue C, 19-27

Abstract: In response to the Fukushima nuclear accident, Switzerland has targeted to phase out nuclear power by 2050. Two diametrically opposite pathways to accomplish Switzerland's nuclear phase-out are quantitatively investigated for the year 2035 using a novel high-resolution power systems simulation framework. The first pathway, “Island in Europe”, installs new natural gas power plants to ensure a self-sufficient Swiss energy system. The second pathway, “Battery of Europe”, increases Switzerland's engagement with central Europe with new pumped hydro storages and increased cross-border electricity trade of European renewable energy. The results show that the “Battery of Europe” scenario enables a threefold increase in financial surplus of cross-border electricity trade compared to the “Island in Europe” scenario. This surplus translates to 15–23% lower domestic Swiss electricity prices, thereby enhancing the competitiveness of the Swiss marketplace; however, Switzerland is then exposed to more technical and political engagement with its neighbours. Additionally, successful implementation of the “Battery of Europe” scenario requires reinforcing 5% of the Swiss transmission grid, which necessitates more streamlined legal processes for new transmission infrastructure. Along a different political dimension, electricity price reductions of up to 22% are possible if the targeted increase of efficiency in Switzerland's energy policy is accomplished.

Keywords: Optimal power flow; EU; Switzerland; Pumped hydro power; Renewables; Nuclear phase-out (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:150:y:2018:i:c:p:19-27

DOI: 10.1016/j.energy.2018.02.139

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