Switzerland Renewable Energy Market | Size, Share, Trends, and Forecast to 2028

Switzerland Renewable Energy Market | Size, Share, Trends, and Forecast to 2028

The global energy landscape is going through a major shift towards renewable based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewable energy deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of establishments primarily engaged in operating renewable electric power generation facilities. Power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or to electric power distribution systems.

The present energy mix in Switzerland is hydropower (61.4%), nuclear (28.5%), solar power (4.2%), other fossilfuels (5.4%) , bioenergy (0.3%) , and wind power (0.2%).

Switzerland Renewable Energy Market Scenario

Switzerland has one of the lowest carbon intensity levels in the world due to a carbon-free electricity sector dominated by nuclear and hydro generation. However, following a 2017 referendum in which Swiss citizens voted to gradually phase out nuclear power, Switzerland's energy sector is undergoing a significant transition.

Solar Energy in Switzerland

Switzerland had 3.65 GW of solar plants operational at the end of the year, accounting for nearly 6% of the country's electricity consumption. In 2021, solar energy generated approximately 2,842 GWh of power, enough to power 900,000 four-person households.

Solar panel installations on single-family homes accounted for 220 MW of total new capacity, while industrial and commercial solar plants added 263 MW.

Solar PV systems with individual capacities ranging from 100 kW to 1,000 kW accounted for the majority of the newly deployed capacity, or 258 MW.

The boom in Switzerland's solar market is expected to continue in 2022, owing to high electricity prices, an increasing number of electric vehicles, and the need for a secure energy supply.

The Swiss government has set aside USD 470 million for solar PV construction and installation in 2021. The funds were intended to cover 20% of the costs of solar investment in 2022.

Large PV installations will receive a one-time payment, while small PV installations will receive a one-time compensation.

Pronovo, the country's official renewable energy enforcement agency, will provide subsidies of up to 30% of the cost of solar installations.

Tax breaks of up to 20% are available for the upkeep of renewable energy-efficient homes.

Wind Energy in Switzerland

In Switzerland, nearly 40 large wind energy facilities are currently operational, producing a total of around 140 gigawatt hours of electricity. The largest wind park is located on Mont Crosin in the Bernese Jura near St Imier and consists of 16 wind turbines with a combined output of 37.2 megawatts. Other large facilities can be found in the Rhône Valley (Valais canton), Entlebuch (Lucerne canton), and on the Gütsch (above andermatt, canton of Uri).

Wind energy plants in Switzerland generate two-thirds of their electricity during the winter when the country requires more energy for heating and lighting. This means that wind energy is an excellent complement to hydropower plants and solar installations, which generate the most electricity during the summer.

In the last decade (2010-2020), globally, the electricity generation from all the sources has increased by 2.2%, from 21,570 terawatt hours to 26,823 terawatt hours. During the same period, the power generation from renewables increased by 15.25%. The regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy tax credits and subsidies, feed-in tariffs, and competitive auctions helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic electricity has fallen by 85%, and the costs of both onshore and offshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, Renewables were the only energy source for which demand increased in 2020 despite the pandemic, while consumption of all other fuels declined.

Energy Policy of Switzerland

The Swiss energy policy aims to ensure a reliable, cost-effective, and environmentally friendly energy supply. It can rely on a number of legal instruments to carry out this mission, including an article added to the Federal Constitution in 1990 and the Federal Energy Act passed in 1998.

Since 2008, Switzerland has imposed a CO2 tax on fossil fuels (oil, gas, and coal). Following the Fukushima nuclear reactor accident in 2011, Switzerland embarked on an energy transition process that began with the publication of its national "Energy Strategy 2050." One of the goals of this strategy is to gradually phase out nuclear power.

The Energy Strategy 2050 places emphasis on 'increased energy savings (energy efficiency), the expansion of hydropower and new renewable energies, and, if necessary, on fossil-fuel-based electricity production.

The system Kostendeckende Einspeisevergütung (KEV), also known as the feed-in tariff (FIT), and its predecessor, Mehrkostenfinanzierung (MKF), as well as specific targets, are the primary drivers of market demand for renewable energy. Despite the fact that the budget made available was rather limited in comparison to market demand.

The institutional framework in Switzerland that supports renewable energy has grown steadily and without major setbacks. With the help of the SwissEnergy program, this process has brought together a wide range of stakeholders, promoted innovative ideas, provided relevant information, pushed market deployments, and encouraged collaboration across sectors.

What Do We Cover in the Report?

Blackridge Research's Switzerland Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2027, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Switzerland.

Furthermore, the report will contain the drivers and restraints within Switzerland's Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting green energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards) as well as country-specific regulations.

Finally, the presentation would enable identify market opportunities and plan for long-term growth.

The impact of the COVID-19 pandemic is an integral part of the report.

This product will be delivered within 3-5 business days.