17 October 2024
Statement on the Revision of the Federal Electricity Act (ElecA)
(Acceleration of the Conversion and Expansion of the Electricity Grid)
In Swissgrid’s view, the «Grid express» proposal contains important and urgently needed legislative changes to speed up the authorisation processes for the expansion and renovation of the transmission system. This will make it easier for grid expansion to keep pace with the expansion of renewable energies in the future, which will strengthen Switzerland’s security of supply.
Given the current lengthy approval processes, grid expansion is increasingly falling behind schedule compared to the expansion of power plants. The direct consequences of this are economically inefficient grid congestion and limited utility power generation. The resulting costs are borne by the end consumers. Unless further measures are taken, the grid is in danger of becoming a bottleneck in the energy transition.
Under various proposals, the procedures for the planning, construction, expansion, and renewal of large plants for the generation of electricity or heat from renewable energies are to be simplified and thereby accelerated. This will further exacerbate the grid situation unless measures are taken now.
In the next few decades, around a third of the existing transmission system will reach the end of its technical service life. These elements will have to be replaced over the next 30 years. The number of grid projects will therefore multiply in relation to the last 20 years. Approval processes need to be significantly accelerated for these projects to be implemented in a timely manner.
The grid is of central importance for Switzerland’s security of supply and for the success of the energy transition.
In its statement, Swissgrid welcomes the following points in particular:
- Overhead line principle (Art. 15B Draft ElecA), as an excessive proportion of underground cables results in major challenges for the transmission system.
- Replacement of existing lines at the same location without the need for a sectoral plan procedure (Art. 15bbis Draft ElecA), as this will reduce unnecessary bureaucracy.
- Priority of the transmission system over other national interests (Art. 15d Draft ElecA), as this will recognise the importance of the grid.
- Dispensing with the internal federal conciliation procedure (Art. 16g para. 1 Draft ElecA), as this will prevent duplication and unnecessary delays.
- Coordination of grid planning (Art. 9c para. 2 Draft ESA), as jointly coordinated planning will save time and simplify the process.
If the approval processes are speeded up, overhead lines are given priority and lines are replaced efficiently without delay, grid expansion can better keep pace with the expansion of renewable energies in the future, which will in turn have a positive impact on Switzerland’s security of supply.
Swissgrid welcomes and supports this draft law in the interests of grid stability, cost efficiency and, ultimately, a successful energy transition.
Statement on the Revision of the Federal Electricity Act (ElecA) (in German)
30 May 2024
Statement on the implementation of the Federal Act on a Secure Electricity Supply from Renewable Energy Sources at ordinance level and further amendments to the relevant ordinances
On 29 September 2023, the Swiss Parliament amended legislation including the Energy Act and the Electricity Supply Act in particular as part of the «Federal Act on a Secure Electricity Supply from Renewable Energy Sources» (known as the «Consolidation Legislation» or the «Electricity Act»). The Federal Council initiated the consultation on the implementing ordinances on 21 February 2024. A total of six ordinances will be revised, including the Electricity Supply Ordinance (ESO), the Winter Reserve Ordinance (WResO) and the Ordinance on the Organisation to ensure National Economic Supply in the Electricity Sector (ESOO).
From Swissgrid’s point of view, the bill represents an important basis for achieving the federal government’s climate and energy targets. The main principles of the Electricity Supply Act passed by the federal government in 2007 have proved their worth. However, it now needs to evolve due to developments in recent years, including the expansion of renewable energies and the resulting increase in fluctuations in the electricity fed into the grid, as well as the advance of digitalisation and the associated opportunities. The bill takes this into account, for example in the new provisions on data interchange, the creation of a central data platform (data hub) and the use of flexibilities.
Important parts of the draft ordinances still need to be revised. In its statement, Swissgrid emphasises the following points in particular:
- The ESO contains a clarifying provision (Art. 13a) on the new provision in the Electricity Supply Act concerning the measures to be taken in the event of a threat to secure transmission system operation. However, this clarification will not be sufficient to resolve the major uncertainties that are likely to arise from the new legal provision with regard to cost allocation. Swissgrid is therefore requesting further clarifications. If Swissgrid were to bear unlimited costs, this could create false incentives that would be contrary to the purpose of the provision – ensuring secure grid operation. All the parties involved (distribution system operators, generators of electricity, storage system operators, etc.) are responsible for ensuring the smooth running of the overall system.
- A further provision in the ESO tasks Swissgrid with operational processing in connection with the lump-sum compensation of the costs for the enhancement of the grid and of connection lines in the distribution system. In its statement, Swissgrid points out that, from a regulatory and organisational perspective, Pronovo would be better suited to perform part of this task. Pronovo has experience with comparable processes as well as some of the necessary data and data systems. This would avoid duplications.
- According to the revised ESOO, the costs incurred by electricity industry players as a result of measures under the National Economic Supply Act are to be passed on via the transmission system tariffs in the future. In its statement, Swissgrid notes that the legislator has not yet stipulated how these costs are to be reported to end consumers, and asks for this to be done as part of the «power reserve» tariff.
Swissgrid also indicates that, notwithstanding the bill, further measures are required to guarantee Switzerland’s security of supply in the long term. The necessary steps include accelerating the approval process, concluding an electricity agreement with the EU, and clarifying the responsibilities of the balance groups.
Statement on the implementation of the Federal Act on a Secure Electricity Supply from Renewable Energy Sources at ordinance level and further amendments to the relevant ordinances (in German)
