INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries Switzerland 1999 Review TABLE OF CONTENTS 1 INTRODUCTION .......................................... 7 2 SUMMARY AND RECOMMENDATIONS ....................... 9 3 GOVERNMENT STRUCTURE AND ENERGY TRENDS . ........... 15 4 THE ENERGY 2000 ACTION PLAN AND ENERGY TAXATION...... 37 5 FOSSIL FUELS ............................................. 63 6 ELECTRICITY .............................................. 81 7 NUCLEAR ................................................ 101 8 ENERGY TECHNOLOGY, RESEARCH AND DEVELOPMENT ........ 109 A ANNEX: ENERGY BALANCES AND KEY STATISTICAL DATA ....... 117 B ANNEX: INTERNATIONAL ENERGY AGENCY “SHARED GOALS” . 121 C ANNEX: GLOSSARY AND LIST OF ABBREVIATIONS .............. 123 List of Tables and Figures .......................................... 5 3 Tables and Figures TABLES 11 Trend in CO2 Emissions in Switzerland, 1990-1997 ................. 31 12 Federal Government’s Contribution to the Energy 2000 Action Plan, 1991-2000 ................................................. 38 13 Federal Government’s Expenditure on Renewables, 1990-1998........ 39 14 Evolution in Energy Staff and Expenditure at Canton Level, 1990-1998 . 39 15 Achievements of the Energy 2000 Action Plan in Comparison with Objectives................................................... 47 16 Effects of the Energy 2000 Action Plan, 1997 ...................... 47 17 Taxes in Average Energy Prices, 1997 ............................ 50 18 Overview of Energy Taxation Proposals ........................... 54 19 Price Increases Entailed by the New Tax Proposals of the National Council and the Council of States....................................... 56 10 Crude Oil and Oil Products Imports, 1997 ........................ 65 11 Oil Refineries in Switzerland, 1997 .............................. 66 12 Oil Products Prices in Switzerland and in Other Selected IEA Countries, 1997 . 67 13 Shareholding of the Main Gas Transport Companies ................ 71 14 Energy Prices in the Industry Sector, 1996-1997 .................... 77 15 Energy Prices in the Household Sector, 1996-1997.................. 77 16 Electricity Interconnections ...................................... 82 17 Major Swiss Electricity Companies ............................... 86 18 Electricity Prices for Households and Industry in Switzerland, 1990-1997 . 91 19 Operating Nuclear Power Plants in Switzerland .................... 101 20 Public R&D Budget for Energy, 1990-2003 ........................ 112 FIGURES 11 Map of Switzerland ........................................... 16 12 Energy Supply by Fuel, 1973-2010 .............................. 18 13 TPES by Fuel in IEA Countries, 1997 ............................. 18 14 Total Final Consumption by Fuel, 1973-2010 ...................... 19 15 Total Final Consumption by Sector, 1978-2010 ..................... 20 16 Total Final Consumption by Sector and by Fuel, 1973-2010 .......... 21 17 Energy Production by Fuel, 1973-2010 ........................... 22 18 Energy Intensity in IEA Countries by Sector in PPP, 1997 . ........... 24 19 Energy Intensity in Switzerland and in Other Selected IEA Countries, 1973-2000 ................................................. 25 10 Energy Intensity by Sector in Switzerland and in Other Selected IEA Countries, 1973-2000......................................... 26 11 Electricity Intensity in Switzerland and in Other Selected IEA Countries, 1973-2000 ................................................. 27 12 Electricity Consumption vs GDP (PPP) in Switzerland and in IEA Countries, 1960-1997 ................................................. 28 5 13 Energy Consumption in the Transport Sector, Excluding Electricity, vs GDP (PPP) in Switzerland and in IEA Countries, 1960-1997 ........ 29 14 Stationary Fossil Fuel Use vs GDP (PPP) in Switzerland and in IEA Countries, 1960-1997 ................................................. 30 15 Energy-related CO2 Emissions by Fuel and by Sector, 1975-1997...... 32 16 Energy-related CO2 Emissions per GDP (PPP) in Switzerland and in Other Selected IEA Countries, 1973-2000 ........................ 33 17 Planned Infrastructure for Railways............................... 45 18 OECD Gasoline Prices and Taxes, Third Quarter 1998. ............. 51 19 OECD Automotive Diesel Prices and Taxes, Third Quarter 1998 ....... 51 20 Fuel Prices and Taxes, 1997 .................................... 52 21 Final Consumption of Oil by Sector, 1978-2010 .................... 63 22 Oil Products Consumption, 1978-1997 ........................... 64 23 Natural Gas Supply by Sector, 1973-2010 ........................ 69 24 Map of the Natural Gas Infrastructure ............................ 72 25 Gas Prices in Switzerland and Other Selected IEA Countries, 1980-1997 . 75 26 Gas Prices in IEA Countries, 1997 ............................... 76 27 Electricity Generation by Fuel, 1973-2010 ........................ 81 28 Electricity Consumption by Sector, 1973-2010 ..................... 83 29 Electricity Generation, Imports and Exports, 1973-2010 . ............ 83 30 Map of the Swiss Electricity Grid ................................ 84 31 Tariff System for Independent Power Producers ..................... 89 32 Electricity Prices in Switzerland and Other Selected IEA Countries, 1980-1997 ................................................. 92 33 Electricity Prices in IEA Countries, 1997 ........................... 93 34 Energy R&D Public Spending per GDP in Switzerland and Other Selected IEA Countries, 1986-1997 ..................................... 112 6 1 INTRODUCTION An IEA review team visited Switzerland in October 1998 to review the country’s energy policies.This report was drafted on the basis of information received during and prior to the visit, including views expressed by various parties during the visit. The team greatly appreciated the co-operation and openness demonstrated by the participants during this policy review process. Members of the team were: Mr. Théo Van Rentergem (Team Leader) Ministry of Economic Affairs, Energy Department Belgium Mr. Petteri Kuuva (Policy Expert) Ministry of Trade and Industry, Energy Department Finland Mr. Shigetaka Seki (Policy Expert) Agency for Natural Resources and Energy, Ministry of International Trade and Industry Japan Mr. Martin Huemer (R&D Expert) Federal Ministry of Science and Transport Austria Ms. Evelyne Bertel OECD Nuclear Energy Agency Ms. Midori Tani (IEA Secretariat) Head of the Country Studies Division Mr. Pierre-Marie Cussaguet (IEA Secretariat) Evelyne Bertel was responsible for drafting Chapter 7 (nuclear),in consultation with the team. Pierre-Marie Cussaguet was responsible for drafting all other chapters, in consultation with the team. 7 The team held discussions with representatives from the following organisations: I The Swiss Federal Office of Energy (SFOE), including its several Departments I The Swiss Agency for the Environment, Forests and Landscape (SAEFL) I The Federal Office of Transport I The Federal Office of Water Economy I The Swiss Federal Nuclear Safety Inspectorate (HSK) I The Swiss National Co-operative for the Disposal of Radioactive Waste (NAGRA) I The Price Surveillance Authority I The Cantons of Lucerne, Neuchâtel, Obwalden and Uri I The Swiss Electricity Utilities Association (VSE) I Nordostschweizerische Kraftwerke (NOK) I Aare-Tessin AG für Electrizität (ATEL) I Electrizitäts-Gesellschaft Laufenburg (EGL) I City of Zürich Electricity Services (EWZ) I The Oil Industry Association I The Swiss Natural Gas Industry Association (ASIG) I Swissgas I The Swiss Association for Atomic Energy I The Swiss Association of Engineers and Architects I The Swiss Consumers’ Protection Foundation I The Swiss Union of Commerce and Industry I The World Wide Fund For Nature (WWF) I The Swiss Energy Foundation 8 2 SUMMARY AND RECOMMENDATIONS Switzerland is a federal country comprising 26 cantons which take their own policy decisions unless the Federal Constitution specifically gives the competence to the Swiss Government. Cantons are also responsible for the implementation of many policy measures decided at federal level. In such a system, close co-operation between the Swiss Government and the cantons is necessary for successful energy policies. Increased co-operation between cantons would also improve policy- making at the local level. Another important feature of the Swiss political system is that citizens can directly take decisions on legislation through referendums. Providing adequate information to the public is vital for such decision-making to function properly. The “Energy 2000 Action Plan”is the core of Swiss energy policy. It aims to stabilise electricity consumption and to reduce fossil fuel consumption and CO2 emissions beyond 2000. It also aims at increasing the supply of renewable and nuclear energy by upgrading the capacity of existing nuclear power plants. The Decree of 1991 on Efficient Energy Use followed by the Energy Law of 1998 defined the respective responsibilities of the Swiss Government and the cantons on energy policy. Between 1990 and 1997, the slowing-down of fossil fuel use and electricity demand and the stabilisation of CO2 emissions were achieved as a result of economic stagnation and the Energy 2000 Action Plan. One of the main aspects of the current plan is the importance given to assessing the cost-effectiveness of the measures implemented. The results of these studies should be valuable in formulating a new energy plan. Although energy intensity in Switzerland