Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§55 |
Switzerland and Liechtenstein |
2017 |
Sectors |
General environmental reference |
Energy |
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The energy strategy of Switzerland, particularly regarding electricity, has recently been completely overhauled by new legislation adopted by the Parliament on 30 September 2016. This follows a long period of consultations, public debate and parliamentary procedures regarding the "Energy 2050 Strategy", triggered by the Fukushima nuclear incident in March 2011 and the fundamental decision taken by the Federal Council as early as May 2011 to progressively abandon nuclear electricity production in Switzerland – a decision endorsed by the Parliament in its 2011 winter session.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§57 |
Switzerland and Liechtenstein |
2017 |
Sectors |
Income or price support |
Energy |
Relevant information
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As an interim measure, on 21 June 2013 the Parliament adopted a partial revision of the energy law which entered into force on 1 January 2014 and increased the minimum amount of the "grid surcharge" from 1.3 centimes per KWh to 1.5 centimes per KWh, while exempting large electric consuming enterprises from it (i.e. the fee paid by the final consumer that covers the difference between the production cost and the market price, and guarantees producers of electricity from renewable sources - solar, wind, geothermal and bio-mass -) a price that corresponds to their production costs. A partial revision of the Law on the Use of Hydro-Force (RS 721.90) in 2012 also clarified that there is no obligation to tender for the award of concessions for electrical networks and hydropower plants, but that transparent and non–discriminatory procedures must be followed.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§58 |
Switzerland and Liechtenstein |
2017 |
Sectors |
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Energy |
Relevant information
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The main provisions of the new energy law and its first package of measures are as follows. Firstly, the law sets indicative consumption, production, and emissions targets. Compared to 2000, energy consumption per capita should diminish by 16% in 2020 and 43% in 2035, and consumption of electricity per capita by 3% in 2020 and by 13% in 2035. The local production of electricity from renewable energies (discounting hydropower) starting from a 2015 baseline of 2,830 GWh, should raise to 4,400 GWh in 2020 and 11,400 GWh in 2035. Hydropower production should diminish slightly from 39,500 GWh in 2015 to 37,400 GWh in 2035. Furthermore, the public financing of energy research was increased by 25% in 2013 from SwF 200 million to SwF 250 million, and stricter standards of energy efficiency will be created for buildings, machines, vehicles and other equipment while new energy labels will be introduced. Publicity campaigns and vocational training programmes on energy efficiency will also be extended.
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Emissions
Renewable
Energy
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§59 |
Switzerland and Liechtenstein |
2017 |
Sectors |
Income or price support |
Energy |
Relevant information
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Other amendments contained in the first package of measures include the increase in the grid surcharge rate from SwF 0.015/KWh to SwF 0.023/KWh, including 1.3 ct/KWh for feed-in tariffs for renewables, 0.2 ct/KWh for investment aid for rooftop photovoltaic systems, 0.3 ct/KWh for support for large hydro which is suffering from depressed European wholesale prices, 0.2 ct/KWh for reimbursement of the grid surcharge to electricity-intensive industries, and 0.1 ct/KWh for renaturation of rivers and a few other measures to support renewables and energy efficiency. In addition, the feed-in tariffs will be replaced by feed-in premiums to entice producers to sell their electricity when demand is high, giving them an incentive to sell electricity when it is in short supply and thus fetches a higher price. This system is of limited duration, as it will only be granted for up to five years after the coming into force of the new law.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§60 |
Switzerland and Liechtenstein |
2017 |
Sectors |
Grants and direct payments |
Energy |
Relevant information
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The Energy Strategy 2050 also extends the one-off investment grants to new beneficiaries. This one-time subsidy that covers a maximum of 30% of the investment costs of a comparable installation (reference installation) was currently available only for operators of small photovoltaic installations, with a production capacity of less than 30 kilowatts. Larger photovoltaic installations will now also benefit from one-off investment grants and so will large, new hydro-electric power stations with a production capacity of more than 10 megawatts, as well as large-scale renewals or extensions of hydro-electric power stations. The financing will come from the network supplement paid by electricity consumers. Investment contributions (including one-off investment grants) will be available until 2030 at the latest.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§61 |
Switzerland and Liechtenstein |
2017 |
Sectors |
Income or price support |
Energy |
Relevant information
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In addition, since prices in European electricity trading are exceptionally low due to overcapacity and faltering demand, most Swiss hydro-electric power stations can no longer cover their costs. Hence, as hydro-electric power is a mainstay of Swiss electricity supply, Parliament voted as part of the Energy Strategy 2050 not only to support new installations (where investment can be expected if and when prices recover), but also to grant financial support to existing ones. It will be possible to claim a market premium for electricity produced by large-scale Swiss hydro electric power stations which must be sold for less than the cost of production. This premium is capped (1.0 ct/KWh) and the total available financial resources are limited. This measure is valid for a period of five years and is financed by the network supplement paid by electricity consumers. In the meantime, a reform of the "water royalty"(i.e. the compensations granted to the local population whose activities have been affected by the construction of the hydro-electric facilities), which accounts for up to 25% of hydropower operating costs, is to be decided by 2019.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§62 |
Switzerland and Liechtenstein |
2017 |
Sectors |
General environmental reference |
Energy |
Relevant information
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Finally, the law shortens and simplifies approval procedures for new installations for the production of electricity from renewable sources. Thus, from now on, the submission of expert assessments from, for example, the Federal Commission for the Protection of Nature and Cultural Heritage, will be subject to a time-limit. Meanwhile, if there is a conflict of interests between the protection of nature and the landscape and their use for the production of renewable energies and if a court of law is required to decide between the two, both concerns – protection and use – will in future be granted the status of national interest and be given equal value when weighed against each other.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§65 |
Switzerland and Liechtenstein |
2017 |
Sectors |
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All products/economic activities |
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The revised law on CO2 emissions of 31 December 2012 entered into force on 1 January 2013 (RS 641.71) together with its implementing ordinance of 30 November 2012 (RS 641.711). Switzerland has undertaken to reduce its greenhouse gas emissions by 2020 by 20% compared to 1990. In order to achieve that goal, the burden of reduction has been split between the residential sector and the transportation sector, taking into account the reduction potential of each sector. A SwF 25 million technology fund has been set up to guarantee loans to companies that are innovative in their use of energy. The CO2 levy on fossil fuels increased from SwF 36 per tonne of CO2 to SwF 60, and recently to SwF 84. If emission targets are not met, the levy may be increased up to SwF 120 until 2020. Part of the revenue from this levy is earmarked as additional finance for an ecologic building programme which started in 2010. Some sectors which are exposed to international competition may be exempted from the CO2 levy, provided they accept binding emission reduction targets.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§66 |
Switzerland and Liechtenstein |
2017 |
Sectors |
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Energy |
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An emissions trading system (ETS) has been developed which according to the authorities is compatible with the EU ETS system. Fuel importers are required to use Switzerland-based measures to compensate for up to 10% of transport emissions. Since 2015, CO2 emissions from new cars registered in Switzerland are limited to 130 g per km. Fossil fuel power plants are required to compensate for their emissions, 50% of which within Switzerland. Following a modification on 1 January 2015 of the Ordinance on the Taxation of Mineral Oils (RS 641.611), all fuels derived from renewable raw materials are exempt from the petroleum tax provided they meet minimum ecological and social standards.
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Secretariat TPR |
WT/TPR/S/355/REV.1 |
S-IV§67 |
Switzerland and Liechtenstein |
2017 |
Sectors |
Other measures |
Not specified |
Relevant information
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In addition, following adoption of the Paris Agreement which should be ratified by Switzerland in 2017, Switzerland has announced its intent to reduce its greenhouse gas emissions by 50% compared to the 1990 level by 2030. A draft of the revised CO2 law, proposing measures to reach this target, was opened to public consultation in autumn 2016.
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