WHY NOW?

• Switzerland has the lowest carbon intensity among IEA countries, owing to a carbon-free electricity sector dominated by nuclear and hydro generation.
   
• On 21 May 2017, Switzerland voted in favour of the first step of the Energy Strategy 2050 and adopted the revised Energy Act as proposed by the Swiss Federal Council and the Parliament. The revised Energy Act aims to reduce energy consumption, increase energy efficiency and promote renewable energies. In addition, the construction of new nuclear power plants shall be prohibited, meaning Switzerland’s energy sector is undergoing a considerable transition. Further, the revised Energy Act includes the aim of reducing Switzerland’s dependence on imported fossil energy sources and of strengthening domestic renewable energies.  
   
• Renewable energy covers up 70% of the annual energy demand.
   
• Today in Switzerland, approximately 53% of the electricity is produced by fully renewable hydroelectric power plants, 36% is produced by nuclear power plants (with an average efficiency of 25% from heat to electricity), and the remaining 11% are obtained from biofuels (<5.7%), waste incineration (<2.7%), PVs, and wind turbines. Thus, the electricity production of Switzerland is almost free of CO2 emission.
   
• The energy transition is currently being implemented in Switzerland through the Energy Strategy 2050, with the goal of climate neutrality. Only 4 of Switzerland's 5 nuclear power plants have been in operation since 2020 and renewable energies' share of total final energy consumption rose to around 28% in 2021.
   
• Switzerland still has a largely unexploited solar PV potential in already-built-up areas. An economic optimum could be reached if fewer than two out of three roofs are covered. The next step is to determine which roofs are most suitable.
   
• The Swiss government intends to continue promoting hydropower, in particular by supporting the renovation and expansion of existing plants in order to increase their efficiency. However, the construction of new hydropower plants is rather unlikely in view of the current number of existing plants, restrictions from environmental laws, nature and landscape protection regulations, and other factors.
   
• The government also said it wanted to increase solar power by making investments into photovoltaic systems tax deductible for both renovations and new buildings, while simplifying the approval process for solar panels to be installed not only on roofs but also on facades.
   
• Another measure is the replacement of traditional domestic electricity meters with smart meters.  The more accurate data will enable more efficient supply and electricity savings. Regulations on CO2 emissions for new cars will be stricter and extended. From 2021, passenger cars will be allowed to emit on average only 95g CO2/km over the entire new car fleet, which is about a quarter less than today. 
   
• It is expected that solar PV power will continue to lead Switzerland’s power market in terms of cumulative installed capacity even in the year-end 2030. Solar PV power had the dominant share in the total renewable power installed capacity of Switzerland. This share is expected to further increase by 2030.
   
• Electricity Generation in Solar Energy market is projected to amount to 2.00bn KWh in 2023.
   
• The Solar Energy market in Switzerland is projected to grow by 2.02% (2023-2028) resulting in a market volume of 2.21bn KWh in 2028.