Switzerland Hydropower Market Size and Trends by Installed Capacity, Generation and Technology, Regulations, Power Plants, Key Players and Forecast, 2021-2030

Switzerland’s hydropower installed capacity was valued at 15.6 GW in 2020 and is expected to grow with a CAGR of less than 1% during 2021-2030. Debt offerings had the highest number of deals in the market followed by acquisitions, and partnerships. The cumulative number of deals in the hydropower sector during the 2010-2020 period was close to 30, at a total value of $10,376 million. The number of deals decreased from 2010 to 2020, and the total deal value decreased from 2010 to 2020.

Hydropower generation accounted for a share of more than 50% of total annual generation in 2020. Although this share is expected to decline in 2030, it will still hold a dominant share in Switzerland’s generation mix. The country has abundant precipitation and retention through glaciers and lakes which had helped the country to rapidly develop the hydropower market.

Overview of Switzerland hydropower market

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What are the market dynamics in the hydropower market of Switzerland?

Switzerland is a net exporter of electricity due to its large hydropower resource base and nuclear power generation facilities. Power exports stood at 32.5 TWh in 2020. Barring a few periods such as 2005, 2006, 2010, 2011, 2016, and 2017, the country exported electricity continuously in the last 2 decades and remains actively engaged in trading activities with Austria, Germany, France, and Italy, among others. In 2020, hydropower sources dominated power generation with over 50% share in total generation, followed by nuclear power, and renewable power. The share of thermal power is minimal in the country and contributed a share of less than 3% in total generation in 2020. Within thermal sources, Switzerland has only gas-fired and oil-fired power plants. The country does not use coal for power generation. Switzerland also has extensive pumped storage hydropower facilities, which are used during peak demand periods.

Switzerland has grid interconnections with Austria, France, Germany, and Italy. The country usually exports surplus electricity to other countries during summers. During winters, the country imports electricity if it is short of domestic power generation.

High dependence on hydropower for power generation is one of the major challenges hampering the growth of the power sector in Switzerland. The country is heavily dependent on hydropower for meeting its power needs. High dependence on a single source for power generation can hamper the country’s energy security. The country may look to expand its renewable power capacity, particularly solar PV, and wind power capacity in coming years.

Within thermal sources, Switzerland has only gas-fired and oil-fired power plants. The country does not use coal for power generation. The share of thermal power in the country’s generation mix is very small in 2020. Also, this share is not expected to increase much by 2030 as a generation will continue to be dominated by hydropower and nuclear power. The country possesses limited gas reserves, primarily in the Finsterwald region. As a result, it imports much of its gas requirements from Germany, the Netherlands, France, and Italy. The Swiss Government is not keen on expanding the gas-based and oil-based power capacities during the 2021 to 2030 period and hence, thermal power capacity in the country is expected to remain constant till 2030.

In the country, tariffs for hydropower plants are composed of base payments and additional bonuses. The tenure for FiTs for hydropower is 15 years. The Swiss Federal Office of Energy generally determines which measures can receive the hydraulic engineering bonus. According to the current regulation, if the share of hydraulic engineering works is less than 20% of the total investment amount, then no bonus is granted. On the other hand, if the share of hydraulic engineering works is higher than 50% of the total investment amount, then the full bonus is granted.

What are the different sources in the power market of Switzerland?

In the power generation mix in 2020, large hydro and pumped storage is the dominant source, followed by nuclear, renewable, and thermal power. Large hydro and pumped storage and nuclear power generation are expected to decrease during 2021-2030, meanwhile, renewable power generation in Switzerland is expected to significantly increase by 2030, and thermal power is expected to have moderate growth. The large hydro and pumped storage generation increased from 32.5 TWh in 2010 to 33.6 TWh in 2020 at a CAGR of more than 0.30%.

Power market of Switzerland, by sources

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What are the different deals in Switzerland’s hydropower market?

The hydropower market recorded a total number of 30 deals (including partnership deals), out of which the majority were debt offerings, followed by acquisition, partnerships, asset transactions, and equity offerings.

Hydropower market of Switzerland, by deal type

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Which are the key players in Switzerland’s hydropower market?

The key players in Switzerland’s hydropower market are Romande Energie Holding SA, Repower AG, Energiedienst Holding AG, Celynx Energy Solutions GmbH, Azienda Elettrica Ticinese, Aventron AG and Axpo Power AG.

Switzerland’s hydropower market, by key players

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Market report scope

Scope

The report analyses Switzerland’s hydropower market. The scope of the research includes:

• A brief introduction to global carbon emissions and global primary energy consumption.
• An overview of the country’s power market, highlighting installed capacity trends (2010-2030), generation trends (2010-2030), and installed capacity split by various power sources.
• Detailed overview of the country’s hydropower market with installed capacity and generation trends, and major active and upcoming hydropower projects.
• Deal analysis of the country’s hydropower market.
• Snapshots of some of the major market participants in the country.

Reasons to Buy

• Enhance your decision-making capability in a more rapid and time-sensitive manner.
• Identify key growth and investment opportunities in the country’s hydropower market.
• Facilitate decision-making based on strong historic and forecast data for the hydropower market.
• Position yourself to gain the maximum advantage of the industry’s growth potential.
• Identify key partners and business development avenues.
• Understand and respond to your competitors’ business structure, strategy, and prospects