renewable energies
Energy suppliers like ewz have the task of ensuring a secure power supply. In summers with extreme drought, however, there can be shortages in electricity produced from hydropower. Insufficiently filled reservoirs exacerbate the situation, especially in winter, when demand for electricity is at its highest. Switzerland then has to import electricity from Europe. However, the supply of imported electricity also fluctuates and leads to high prices in the event of shortages. As there is currently no electricity agreement with the European Union (EU), Switzerland could be disadvantaged when it comes to imports in the future.
The phasing out of nuclear energy and the net-zero climate target are also offset by the sluggish expansion of renewable energies. In view of this situation, and given that overall consumption is likely to increase, we need to be able to implement more renewable energy projects.
ewz wants to use the new credit facility to continue investing in renewable energies and systematically expand them. In 2008, 2016 and 2020, credit facilities of CHF 200 million were approved by referendums to promote energy production from renewable energies. These are now largely exhausted. The aim is primarily to increase the production of winter electricity in order to reduce dependency on electricity imports. To achieve this, hydropower plants will be expanded, concessions for existing hydropower plants renewed and high-alpine photovoltaic systems and wind farms built. ewz also wants to invest directly or indirectly in the founding of companies that plan, build and operate such production facilities. The new credit facility would also be used for projects in ewz’s focus countries (currently France, Germany, Norway and Sweden).
Hydropower plants
Hydroelectric power is particularly important for Switzerland’s power supply in winter. ewz is involved in five of the Hydropower Round Table's (in German) 16 projects: as a licence holder and operator in the Lai da Marmorera project in the Grisons, via partner Kraftwerke Oberhasli AG in the Lake Grimsel, Trift and Oberaarsee projects in Berne, and via Maggia SA in the Lago del Sambuco project in Ticino. ewz is also currently negotiating with various cantons and municipalities on further construction projects and the renewal of licences for hydropower plants. The licences give ewz the right to use the water for power production, subject to certain conditions. The credit facility could be used to renew these licences and finance further projects.
Large photovoltaic systems (solar energy)
Photovoltaic projects in the Alpine region could one day make a significant contribution to power production from renewable energies in Switzerland. Due to the intense solar radiation at high altitude, the reflective snow cover and the cool temperatures, these systems produce far more electricity than systems in the Swiss plateau. As around half of the solar power is generated by the alpine systems in the colder half of the year, this should also reduce dependence on imports in the future. However, the expansion of photovoltaic systems is only progressing slowly. This is due to local and infrastructural challenges in implementing them as well as stakeholders who resist them. ewz wants to use the credit facility to promote the expansion of photovoltaic systems and implement projects.
Wind farms
ewz has been developing the Mollendruz and Provence wind farms in the canton of Vaud for more than 15 years. It has taken that long due to the complex planning procedures and legal processes. For this reason, the City Council has made several loans available from the existing credit facility for purchasing or investing in wind farms in Germany, France, Sweden and Norway.
The constantly changing legal and technical framework conditions require flexibility. A credit facility shortens decision-making processes considerably because the City Council can decide about the individual projects itself. Depending on the amount of the loan, a decision by the City Parliament or the approval of voters is required, which takes time. Funds generated by ewz itself are used to make the investments, so they are not a burden on the city’s treasury or on taxpayers.
The City Parliament approved the credit facility on 12 June 2024 by 97 votes to 14. The electorate of the city of Zurich will take to the polls on 22 September 2024 to decide on the credit facility totalling CHF 300 million. The following proposal will be submitted to the voters for decision:
- For the creation and acquisition of power generation plants that use renewable energies, for the acquisition of or increased investment in companies which control such power generation plants, for the establishment of companies that control or create such power generation plants, as well as for the provision of loans to such companies, a credit facility of CHF 300 million is to be granted.
- The City Council will decide on how the credit facility will be split into smaller pots for specific projects.
The voters of the city of Zurich approved the project on September 22, 2024 with 82,86 percent. Thank you very much.
