The Future of Swiss Hydropower: An Integrated Economic Assessment of Chances, Threats and Solutions
Summary
Hydropower (HP) represents a central pillar of Switzerland`s energy system and thereby is a crucial element in obtaining the intended Energy Strategy 2050 targets. HP is envisioned to increase production (which includes the need for retrofitting older plants), is supposed to provide the needed flexibility to accommodate large shares of renewable energy generation, and plays an important role in regional economies and regional development (especially in mountain cantons). At the same time several uncertainties and external factors will have an impact on the current operation and future development of hydropower.
This NRP 70 cluster "The Future of Swiss Hydropower: An Integrated Economic Assessment of Chances, Threats and Solutions" (HP Future) aims at providing a comprehensive economic framework for the evaluation of and its application to assess hydropower operation, hydropower investments and the sustainability perspective on a regional level. The respective main research questions are:
- What are the short-term operational options for Swiss hydro plants to cope with the volatile market environment?
- What are the long-term investment options for Swiss HP and how can uncertainty be accounted?
- What are the regional impacts of these developments from a comprehensive sustainability perspective?
Correspondingly, the cluster is organized in three main Work-Packages (WP) that are complemented by an encompassing structure. The later ensures a close linkage of the work carried out within the individual WPs but also provides an interface to external stakeholders and other research groups. Due to the complexity of the topic and the large number of influences on Swiss HP (covering ecological, technical, economic and social aspects) the project 'HP Future' will require an open framework that ensures mutual exchange between the involved researchers and ongoing research in other projects and groups as well as with stakeholders from industry, politics and society. To ensure this openness while maintaining a close linkage between the three WPs an encompassing structure is added that provides a common starting point, a cross-check on the obtained progress between the first and second stage of the project, and a final consolidation and dissemination of the results.
In 2017 the project has been extended with a fourth WP to address the ongoing issue on the potential reformation of water fees including the ZHAW as fifth project team. WP4 will provide a first quantification of changes in the water fee framework under different market conditions and potential long term effects on investments and local aspects.
Project Duration
2014 - 2018
Project financed by
Project Workshops
Within the project three workshops are planned to exchange with stakeholders and disseminate the project findings.
Bern, 12.03.2015:
The HP-Future-Team organized a first Kick-Off Workshop on the 'Future of Swiss Hydropower' in March 2015 to evaluate the most pressing issues for Swiss HP.
Details can be found here
Neuchâtel, 28.10.2016
A 2nd Workshop was organized to present and discuss first results and insights.
Details can be found here
Bern, 29.03.2019
A final Workshop will be organized end of March 2019 in Bern to present and discuss the project results and insights and discuss on needed next steps.
Details can be found here
Project Reports
The Future of Swiss Hydropower: Realities, Options and Open Questions
Final Project Report, March 2019
The Future of Swiss Hydropower: Distributional Effects of Water Fee Reform Options
Interim Project Report, September 2018
The Future of Swiss Hydropower: Is there money left somewhere?
Interim Project Report, April 2017
The Future of Swiss Hydropower - A Review on Drivers and Uncertainties
1st Project Report, Sep. 2015
Work Package Publications
Workpackage 1:
- Schillinger M., Weigt H. (ongoing)
Bidding into Balancing Markets in a hydro-dominated Electricity System
Work in Progress - Barry, M., Abgottspon, H., Schumann, R. (2018)
Solver Tuning and Model Configuration.
Proceedings:Joint German/Austrian Conference on Artificial Intelligence (Künstliche Intelligenz) (pp. 141-154). Springer. - Schillinger M., Weigt H., Schumann R., Barry M. (2017)
Hydropower operation in a changing environment
Proceedings: 14th International Conference on the European Energy Market (EEM) - Schillinger M., Weigt H., Schumann R., Barry M. (2017)
Hydropower Operation in a Changing Market Environment – A Swiss Case Study
SCCER CREST Working Paper - Barry, M., and Schumann, R. (2016).
Automatic Configuration of Hybrid Mathematical Models.
Proceedings: 18th International Configuration Workshop (p. 55).
Workpackage 2:
- Gaudard L. and Madani K. (2019)
Energy storage race : Has the monopoly of pumped-storage in Europe come to an end?
In: Energy Policy, 126, 22-29 - Ranzani A., Bonato M., Patro E.R., Gaudard L., De Michele C. (2018)
Hydropower future: between climate change, renewable deployment, carbon and fuel prices
Water 2018, 10(9), 119 - Gaudard, L., Avanzi, F., and De Michele, C. (2018)
Seasonal aspects of the energy-water nexus: The case of a run-of-the-river hydropower plant.
Applied Energy, Volume 210, 604-612. - Gaudard L. and Romerio F. (2016).
Hydropower: From past to future uncertainties
In: Delivering Energy Law and Policy in the EU and the US – A reader, ed. Little and Heffron, Edinburgh University Press. - Gaudard L., Romerio F. and Voegeli G. (2016)
L’hydroélectrique en Suisse du début du XXe siècle jusqu’au ‘virage énergétique’
Numéro Spécial: Energies, Revue Historique Vaudoise 124.
Workpackage 3:
- Voegeli, G.; Hediger, W.; Romerio, F. (2019).
Sustainability assessment of hydropower: Using causal diagram to seize the importance of impact pathways.
Environmental Impact Assessment Review (forthcoming). - Hediger, W. (2019).
Corporate Social Responsibility and Governance of Hydropower – New Challenges in Energy Economics and Policy.
IAEE Energy Forum, Second Quarter 2019: 23-25. - Hediger, W. (2018).
The Corporate Social Responsibility of Hydropower Companies in Alpine Regions—Theory and Policy Recommendations.
Sustainability, 10(10), 3594 (doi.org/10.3390/su10103594). - Voegeli G., Gaudard L., Hediger W. And Romerio F. (2018)
Framework for Decision-Making Process in Granting Rights to Use Hydropower in the European Context
Water, 10(7), 930. - Herter, M.; Hediger, W. (2018).
Den Ausbau der Schweizer Wasserkraft nachhaltig planen und umsetzen – Lehren aus einem Stakeholderprozess.
Zentrum für wirtschaftspolitische Forschung, HTW Chur. - Hediger W. (2017)
The Corporate Social Responsibility of Hydropower Companies– A welfare-economic approach with application to Alpine regions
SCCER CREST Working Paper - Hediger W. (2017)
Nachhaltigkeitsbeurteilung (NHB) von Wasserkraftprojekten.
Zentrum für wirtschaftspolitische Forschung ZWF, HTW Chur, Mai 2017. - Baur P. und Hediger W. (2016)
Wasserkraft, Energiewende und nachhaltige Entwicklung: Vielfältige Auswirkungen, schmerzhafte Abwägungen
Wissensplatz 2/2016 (S. 22-23). - Hediger W. and Voegeli G. (ongoing)
Sustainability Assessment of Swiss Hydropower: A Note on the State of the Art and Prospects for an Integrated Approach
Work in Progress
Workpackage 4:
- Betz R., Geissmann T., Kosch M., Schillinger M., Weigt H. (2019).
The Future of Swiss Hydropower: The Design of Variable Water Fees and its Impact on Profitability
University of Basel/ZHAW, HP-Future project working paper - Gaudard L., Voegeli G., Romerio F. (2019)
Hydropower investment profitability under different water fee systems.
University of Geneva, HP-Future project working paper - Hediger, W.; Herter, M. (2019).
The Future of Swiss Hydropower: The Regional Economic Importance of Hydropower and Water Fees in the Canton of Grisons, Switzerland.
Technical Research Paper, Zentrum für wirtschaftspolitische Forschung ZWF, HTW Chur (forthcoming). - Hediger, W.; Herter, M.; Schuler, Ch. (2019).
The Future of Swiss Hydropower: Water Fee-induced Financial Flows in Switzerland.
Final Report. - Hediger, W.; Herter, M. (2018).
La risposta svizzera allo squilibrio: la compensazione fiscale.
Sentieri Urbani/Urban Tracks, 26.
Related Publications
- Schillinger M. (ongoing). Balancing Market Design and Opportunity Cost – The Swiss Case. Work in Progress
- Savelsberg, J., Schillinger, M., Schlecht, I., & Weigt, H. (2018). The Impact of Climate Change on Swiss Hydropower. Sustainability, 10(7), 2541.
- Romerio F. (2016). Cenni storici, In: Graf F. and Buzzi-Huppert B. (eds.). Centrale idroelettrica Nuova Biaschina, 1962-1967. Mendrisio Academy Press, 6-9.
- Gaudard L., Gabbi J., Bauder A. and Romerio F. (2016). Long-term Uncertainty of Hydropower Revenue Due to Climate Change and Electricity Prices. Water Resources Management, 30(4), 1325-1343.
- SCCER-CREST (2016). Wasserkraft: Wiederherstellung der Wettbewerbsfähigkeit. White Paper SCCER CREST
- Schlecht I., and Weigt H. (2016). Long Drought Ahead? The Future Revenue Prospects of Swiss Hydropower. SCCER CREST Working Paper
Conference presentations and posters
- 'Energieforschungsgespräche', 2018, Disentis, Switzerland:
Der Wasserzins - aus wissenschaftlicher Sicht - Werner Hediger
Profitabilität der Schweizer Wasserkraft unter verschiedenen Wasserzinsregimes - Mirjam Kosch
Zukunft der Schweizer Wasserkraft - Hannes Weigt
Water Fee-induced Financial Flows in Switzerland – Chrisoph Schuler, Marc Herter - Distributional Effects of Water Fee Reform Options
Conference posters, ‘SCCER-SoE Annual Conference 2018’, 13 - 14 September 2018, Horw LU, Switzerland. - Zukunftsfähige Wasserkraft: Eine volkswirtschaftliche Sicht, Fachtagung Wasserkraft
Public presentation, Fachtagung Zukunft der Wasserkraft – im Spannungsfeld von Politik, Markt und Gesellschaft, Verband Schweizerischer Elektrizitätsunternehmen (VSE), 27.06.2018, Olten. - Hydropower – A Key to Sustainable Regional Development in the Swiss Alps
Presentation, Regional Studies Association Annual Conference 2018, 05.06.2018, Lugano. - The importance of Swiss hydropower for the regional economy in the Canton of Grisons
Presentation, “Graubünden forscht”, 20.09.2018, Davos. - Hydropower
Joint thematic session at the 41st IAEE International Conference, 10-13 June, 2018, Groningen, Netherlands - The Future of Swiss Hydropower
Presentation, 12. Schweizerischer Stromkongress, January 15./16. 2018, Bern - 'Energieforschungsgespräche', 2018, Disentis, Switzerland
Energiestrategie 2050: Einfluss auf die Raumentwicklung in den Gebirgskantonen – Werner Hediger
Regionalwirtschaftliche Auswirkungen und Nachhaltigkeitsbeurteilung von Wasserkraftprojekten – Marc Herter - 'Energieforschungsgespräche', January 26, 2017, Disentis, Switzerland
Energie als Standortfaktor in den Berggebieten - The Corporate Social Responsibility of Hydropower Companies -- A welfare economic approach with application to Alpine regions
Presentation, 'Energy Research Workshop', 25-27 January, 2017, Disentis, Switzerland - Swiss concession Renewal: Challenges and opportunities in the current context
and
Integrated Sustainability Assessment of Hydropower Projects
Conference posters, ‘SCCER-SoE Annual Conference 2016’, 12 - 13 September 2016, Sion, Switzerland - Hydropower in Europe
Joint thematic session at the 39th IAEE International Conference, June 22, 2016, Bergen, Norway - Solver Paramter Tuning and Runtime Predictions of Flexible Hybrid Mathematical models
Conference proceedings: 26th International Conference on Automated Planning and Scheduling, June 2016, London, UK - Sustainability Assessment of Swiss Hydropower
Presentaion, 'Mountain Workshop', June 10, 2016, Bern, Switzerland - The Future of Swiss Hydropower
Presentation, 'Energy Reserach Workshop', January 29, 2016, Disentis, Switzerland - Energie als Standortfaktor in den Berggebieten
Public presentation, 'Energieforschungsgespräche', January 28, 2016, Disentis, Switzerland - Future of Swiss Hydropower: Regional Impact Analysis and Sustainability Assessment of HP
Conference presentation, 'Journée de l'environnement', December 04, 2015, Geneva, Switzerland - The Future of Swiss Hydropower A Review on Drivers and Uncertainties
Conference poster and presentation, ‘SCCER-SoE Annual Conference 2015’, 10 - 11 September 2015, Université de Neuchâtel, Switzerland - Configuration of Hydro Power Plant Mathematical Models Research in Progress Paper
Conference proceedings: Conference Energieinformatik 2015. Springer, (2015) - The Future of Swiss Hydropower: An Integrated Economic Assessment of Chances, Threats and Solutions
Conference presentation, 'SEFS 9 - Symposium for European Freshwater Sciences', July 5-10, 2015, Geneva, Switzerland - The Future of Swiss Hydropower
Conference poster and presentation, 'NRP 70 / NRP 71 Kick-off Event', April 24, 2015, Luzern, Switzerland - The Future of Swiss Hydropower: An Integrated Assessment of Operation, Investment and Sustainability
Conference poster, ‘Sustainable Use of Resources – from Evidence to Intervention’, 29 January 2015, Basel, Switzerland