Policy-relevance of a Model Inter-comparison: Switzerland in the European Energy Transition

TL;DR

This study compares four electricity system models to assess Swiss energy policies' impacts on national and cross-border electricity flows, highlighting how different policy choices influence imports, prices, and trade benefits within the European energy transition.

Contribution

It introduces a model inter-comparison approach to evaluate Swiss energy policies' effects on both national and European electricity systems, considering international interactions.

Findings

Renewable targets reduce net imports and prices.

Reduced market integration limits trade benefits and increases costs.

Limiting winter imports raises supply costs and electricity prices.

Abstract

The energy transition is reshaping electricity systems, bringing new challenges, and emphasizing the need for strategic planning. Energy policies play a crucial role in guiding this transition. However, assessing their impacts often requires robust modeling involving multiple models and going beyond a single country's scope, analyzing international interactions. In this study, we examine three Swiss energy policies, analyzing their impacts on both the national energy system and the cross-border electricity flows. We use a model inter-comparison approach with four electricity system models to explore scenarios involving Swiss renewable generation targets, the Swiss market integration, and the Swiss winter import limitations, in the context of various European electricity developments. The results indicate that a renewable generation target leads to a reduction in net imports and electricity prices. Additionally, reduced market integration impacts both Swiss and European energy transitions by limiting trade benefits, underutilizing Variable Renewable Energy Sources (VRES), and increasing electricity supply costs. Lastly, we observe that limiting Swiss winter imports adversely affects electricity trading, driving up both supply costs and electricity prices.