The unique “Swiss way” of association with the European Union (EU) has received increasing attention in light of recent events such as Brexit as it is based on sectoral agreements without an overarching institutional framework. As such, Europeanization of Swiss domestic policy does not follow a straightforward process. We examine the external governance processes that drive the Europeanization of Swiss energy policy. Switzerland and the EU are highly interdependent in energy due to Switzerland’s geographical position but there is a relatively low level of policy alignment, as there is no formal EU-Swiss energy agreement nor has Switzerland autonomously implemented legislation equivalent to the EU energy acquis. The EU has fully liberalized the energy market and is focusing on consumer empowerment and decarbonization through the Clean Energy Package, whereas the Swiss energy sector remains only partially liberalized. Through a series of expert interviews with key stakeholders, we reconstruct the historical developments in Swiss energy policy, focusing on the relationship with, and the influence of the EU. We observe elements of each of the three ideal modes of governance—markets, hierarchies, and networks. The relative importance of these modes of coordination in governing EU-Swiss energy relations has shifted considerably over time. Gradual harmonization of EU energy markets and certain key events have driven Swiss exclusion from EU network governance processes, leading to more hierarchy. We identify the strengths and weaknesses of each mode of governance for EU-Swiss energy relations in their historical setting and discuss the implications for energy policy in Switzerland in the context of the Clean Energy Package and EU external relations in general.
A convergence of the electricity and the transportation sectors can be observed, with private and public transport being increasingly electrified and with aggregated electricity demand and storage being increasingly operated as flexible assets. At the same time, sustainability concerns are driving systemic changes in both systems. This article introduces the concept of the energy-mobility system, which is a result of this convergence, and proposes an integrated framework for policy and governance of the energy-mobility system. The framework focuses on cross-sectoral policy ambitions related to climate change mitigation, namely reducing energy consumption, electrifying fossil fueled transport, decarbonizing electricity generation, promoting resilience, and integrating green infrastructure management. Public policy and the corresponding regulation are no longer conceptualized and executed in each sector separately. An integrated policy framework is indeed needed for the energy-mobility system, so that the institutions remain relatively aligned with the technological developments. The requirements for effective governance of the energy-mobility system are then discussed, which include an energy-mobility system operator. The potential for the policy and governance framework is addressed through a case study of the Swiss Federal Railways, which as the owner and operator of a fully electrified rail network and associated electricity infrastructure is already close to taking up such a role. While the Swiss case is unique, it can offer insight for other countries developing their regulatory approach to the convergence of the energy and mobility systems.
Switzerland is considering implementing a strategic energy reserve, a novel policy instrument that remunerates power plant operators for storing a minimum amount of energy in reservoirs to convert into electricity when called upon. The policy is envisioned for the winter period, when the country’s large hydropower reservoirs tend to be nearly depleted. This study analyzes the impact of such a strategic energy reserve on security of supply, consumer costs, international trade, and sustainability. A hybrid simulation model is developed that combines agent-based modeling and system dynamics. The simulations show that the reserve can improve short-term security of supply but does not improve long-term security of supply as it does not impact domestic investments or reduce the import dependency in winter. The reserve leads to a slight increase in consumer costs, even when including the reduction in outage costs. A larger reserve is more effective at reducing the supply risk but is proportionally costly. Lastly, we find that the policy induces scarcity periods that would not have occurred otherwise, which means that the reserve should have a high strike price to ensure it is only called upon as a last resort. We conclude that there is no structural need for a strategic energy reserve, as it only increases short-term security of supply and does not contribute to solving the structural problem. Any implementation should be done on an ad hoc basis, conditional on a short-term generation adequacy assessment. This has the potential to minimize the associated costs while maximizing the benefits.
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