Do We Need Gas as a Bridging Fuel? A Case Study of the Electricity System of Switzerland

Abstract

Many future electricity scenarios, including those from the International Energy Agency, use natural gas to bridge the transition to renewables, in particular as a means of balancing intermittent generation from new renewables. Given that such strategies may be inconsistent with strategies to limit climate change to below 2 • C, we address the question of whether such use of gas is necessary or cost effective. We conduct a techno-economic case study of Switzerland, using a cost optimization model. We explore a range of electricity costs, comparing scenarios in which gas is used as a source of base-load power, a source of balancing capacity, and not used at all. Costs at the high end of the range show that a complete decarbonization increases system-wide costs by 3% compared to a gas bridging scenario, and 13-46% compared to a carbon-intensive scenario, depending on the relative shares of solar and wind. Costs at the low end of the range show that system-wide costs are equal or lower for both completely decarbonized and gas bridging scenarios. In conclusion, gas delivers little to no cost savings as a bridging fuel in a system that switches to wind and solar.

Impacts of an Increased Substitution of Fossil Energy Carriers with Electricity-Based Technologies on the Swiss Electricity System

“…A central assumption in ES2050 as well as in this study is that Swiss electricity deficits can be compensated by importing electricity from abroad-or by building new CCGT power plants [80]. In this section, it is roughly assessed how a similar penetration of electricity-based technologies would affect Germany and France, which are currently the neighbouring countries, from which Switzerland primarily imports electricity [53].…”

Evaluating Consistency in Environmental Policy Mixes through Policy, Stakeholder, and Contextual Interactions

“…Although these recommendations for the policy making processes are not new, we continue to observe inconsistencies in policy mixes at different levels of governance. For instance, Díaz et al [83] highlights incongruence in the interpretation of the Swiss energy policy strategy at national and local policy making levels. They show the challenges brought about by the divergent perspectives of stakeholders that have not been fully represented in the policy strategy.…”

Cross-Border Effects on Swiss Electricity Prices in the Light of the Energy Transition

“…As explained in the Introduction, and confirmed by previous empirical evidence [8], Swiss electricity prices are mainly determined by German Phelix prices, given that Switzerland is a net importer of German power almost over the entire year as illustrated in Figure 1. Equation (1) gives us the long-term co-movement between the two price series. Table 4 summarises the estimation results.…”

“…In this paper, we identify the fundamental market factors that impact Swiss electricity wholesale prices (Swissix), given the interconnector between the German and Swiss power markets. Given the perspective of the Swiss energy policy to support investments in new installations of wind and PV (photovoltaic), as well as in flexible storage devices (see, for example, [1] or [2]), an understanding of the fundamental factors that impact Swiss electricity prices becomes highly relevant. In particular, we emphasize the seasonal profile of imports of renewable energies and focus on their interchange in production with traditional sources (coal, gas, oil).…”