Overview
Under Switzerland’s Energy Strategy 2050, the county aims to achieve net zero carbon emissions by 2050. To achieve this, Switzerland will require large-scale investments in renewable energy and clean technologies. The country intends to nearly triple output from non-hydro renewable sources such as wind and solar by 2035. Switzerland’s overall energy consumption in 2021 included petroleum products (43%), electric power (26%), natural gas (15%), and wood and coal (6%). Switzerland is nearly self-sufficient in electricity production. In 2021, more than 680 hydroelectric plants generated 61.5% of the electricity consumed in Switzerland. The country’s four nuclear plants generated another 28.5% of the electricity consumed in Switzerland, but also exported approximately half of their total production. Switzerland will decommission its nuclear power plants by taking them offline at the end of their current expected lifespan, but no later than 2034, in accordance with a national referendum held in 2011. (The first plant, Mühleberg, was taken offline in December 2019.) Switzerland is embedded in the European energy grid via its national grid manager (Swissgrid), which links Switzerland to France, Germany, Italy, and Austria. Switzerland’s power sector may require additional investment over time.
|
|
2018 |
2019 |
2020 |
2021 estimated |
|---|---|---|---|---|
|
Total Local Production1 |
10,261 |
10,940 |
11,246 |
11,830 |
|
Total Exports2 |
5,069 |
4,369 |
3,619 |
5,741 |
|
Total Imports2 |
11,096 |
10,589 |
7,075 |
11,565 |
|
Imports from the US2 |
434 |
602 |
656 |
690 |
|
Total Market Size |
16,288 |
17,160 |
14,702 |
17,654 |
|
Exchange Rates |
0.978 |
0.994 |
0.939 |
0.914 |
(total market size = (total local production + imports) - exports)
Units: $ millions
Source:
1 Swiss gross value-added in the supply of electricity, gas, steam and air conditioning per: BFS (retrieved on 6/23/2022). The growth rate for local production for 2021 was estimated at 5.2% in Swiss franc terms, in line with overall GDP growth for the year.
2 Includes goods linked to electric power including hydro, nuclear, wind, and solar power (HS Codes 8401, 8402, 8410, 8411, 8502, 8541), as well as crude oil, refined petroleum, natural gas and electricity (HS Codes 2709, 2710, 2711 and 2716), per the UN Comtrade database (retrieved on 6/23/22).
Leading Sub-Sectors
Renewables in general, smart energy grids, petroleum (crude and refined).
Opportunities
Given Switzerland’s pursuit of a net zero emissions target by 2050, demand for renewable energy sources such as hydropower, solar power, and wind power will further increase, while the development of a smart energy grid may also offer opportunities for U.S. companies. U.S. crude oil and refined petroleum continue to offer opportunities in the Swiss market in the short- to medium-term. With Switzerland’s remaining four active nuclear power plants to be decommissioned no later than 2034, services related to decommissioning may offer opportunities for U.S. companies, including spent nuclear fuel storage systems.
Resources
Swiss Federal Office of Energy: https://www.bfe.admin.ch/bfe/en/home.html
Switzerland’s national grid company (Swissgrid): www.swissgrid.ch
Association of Swiss Electricity Companies: www.strom.ch
Energy Strategy 2050: https://www.uvek.admin.ch/uvek/en/home/energy/energy-strategy-2050.html