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Linking Europe: The Role of the Swiss Electricity Transmission Grid until 2050

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  • Ingmar Schlecht
  • Hannes Weigt
Abstract
The aim of this paper is to evaluate the role of the Swiss electricity transmission system and the planned network extensions in the context of Central European electricity market developments and thereby the Swiss and European energy transitions. In addition, we conduct a sensitivity analysis of delayed grid investments for Swiss and European network projects, respectively. By utilizing a numerical model representation of the Swiss electricity market Swissmod we derive a quantification of the different effects and developments up to 2050. In summary, the Central European market will largely be influenced by the significant increase in intermittent renewable generation. Whereas current power flow patterns are mostly from the Northern markets towards Italy using Switzerland as a transit hub, the large share of solar capacities in 2050 will lead to a high variability on shorter timeframes. While Switzerland will remain a transit hub, the import and export flows will vary with season and daytime. The potential costs and system impacts due to delayed network investments are rather modest in comparison to the overall generation costs but can nevertheless sum to 700 million per year highlighting the importance of network extension to improve cross-regional energy exchange.

Suggested Citation

  • Ingmar Schlecht & Hannes Weigt, 2015. "Linking Europe: The Role of the Swiss Electricity Transmission Grid until 2050," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 151(II), pages 39-79, June.
    • Handle: RePEc:ses:arsjes:2015-ii-2
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    References listed on IDEAS

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    1. Fürsch, Michaela & Hagspiel, Simeon & Jägemann, Cosima & Nagl, Stephan & Lindenberger, Dietmar & Tröster, Eckehard, 2013. "The role of grid extensions in a cost-efficient transformation of the European electricity system until 2050," Applied Energy, Elsevier, vol. 104(C), pages 642-652.
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    Citations

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    Cited by:

    1. Betz, Regina & Geissmann, Thomas & Kosch, Mirjam & Schillinger, Moritz & Weigt, Hannes, 2019. "The Design of Variable Water Fees and its Impact on Swiss Hydropower Companies and Resource Owners," Working papers 2019/12, Faculty of Business and Economics - University of Basel.
    2. Barry, Michael & Baur, Patrick & Gaudard, Ludovic & Giuliani, Gianluca & Hediger, Werner & Romerio, Franco & Schillinger, Moritz & Schumann, René & Voegeli, Gillaume & Weigt, Hannes, 2015. "The Future of Swiss Hydropower A Review on Drivers and Uncertainties," Working papers 2015/11, Faculty of Business and Economics - University of Basel.
    3. Schillinger, Moritz, 2019. "Balancing Market Design and Opportunity Cost - The Swiss Case," Working papers 2019/14, Faculty of Business and Economics - University of Basel.
    4. Dominic Samoita & Charles Nzila & Poul Alberg Østergaard & Arne Remmen, 2020. "Barriers and Solutions for Increasing the Integration of Solar Photovoltaic in Kenya’s Electricity Mix," Energies, MDPI, vol. 13(20), pages 1-17, October.
    5. Vögelin, Philipp & Georges, Gil & Boulouchos, Konstatinos, 2017. "Design analysis of gas engine combined heat and power plants (CHP) for building and industry heat demand under varying price structures," Energy, Elsevier, vol. 125(C), pages 356-366.
    6. Jonas Egerer, 2016. "Open Source Electricity Model for Germany (ELMOD-DE)," Data Documentation 83, DIW Berlin, German Institute for Economic Research.
    7. Runge, Philipp & Sölch, Christian & Albert, Jakob & Wasserscheid, Peter & Zöttl, Gregor & Grimm, Veronika, 2019. "Economic comparison of different electric fuels for energy scenarios in 2035," Applied Energy, Elsevier, vol. 233, pages 1078-1093.
    8. Savvidis, Georgios & Siala, Kais & Weissbart, Christoph & Schmidt, Lukas & Borggrefe, Frieder & Kumar, Subhash & Pittel, Karen & Madlener, Reinhard & Hufendiek, Kai, 2019. "The gap between energy policy challenges and model capabilities," Energy Policy, Elsevier, vol. 125(C), pages 503-520.
    9. Bartlett, Stuart & Dujardin, Jérôme & Kahl, Annelen & Kruyt, Bert & Manso, Pedro & Lehning, Michael, 2018. "Charting the course: A possible route to a fully renewable Swiss power system," Energy, Elsevier, vol. 163(C), pages 942-955.
    10. Wiese, Frauke & Schlecht, Ingmar & Bunke, Wolf-Dieter & Gerbaulet, Clemens & Hirth, Lion & Jahn, Martin & Kunz, Friedrich & Lorenz, Casimir & Mühlenpfordt, Jonathan & Reimann, Juliane & Schill, Wolf-P, 2019. "Open Power System Data – Frictionless data for electricity system modelling," Applied Energy, Elsevier, vol. 236(C), pages 401-409.
    11. Schillinger, Moritz, 2020. "Balancing-market design and opportunity cost: The Swiss case," Utilities Policy, Elsevier, vol. 64(C).
    12. Philipp Emanuel Hirsch & Moritz Schillinger & Katharina Appoloni & Patricia Burkhardt-Holm & Hannes Weigt, 2016. "Integrating Economic and Ecological Benchmarking for a Sustainable Development of Hydropower," Sustainability, MDPI, vol. 8(9), pages 1-20, August.
    13. Moritz Schillinger & Hannes Weigt & Philipp Emanuel Hirsch, 2020. "Environmental flows or economic woes—Hydropower under global energy market changes," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-19, August.
    14. Jonas Savelsberg & Moritz Schillinger & Ingmar Schlecht & Hannes Weigt, 2018. "The Impact of Climate Change on Swiss Hydropower," Sustainability, MDPI, vol. 10(7), pages 1-23, July.

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    More about this item

    Keywords

    Switzerland; energy transition; network extension; investment delay;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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