"It is important to have backup solutions, such as the Cornaux gas-fired power plant."

In an interview given in early December to the "Tages-Anzeiger", Christoph Brand, director general of the Axpo group, warned Switzerland about the serious risk of energy shortages during the winter.

To support his remarks, the director referred to the case of 6 November 2024, a day described as a "dark lull", that is to say without sun or wind to feed the photovoltaic panels and wind turbines. "While all of Germany's power plants were running at full capacity and import lines were saturated, demand was barely met. Imagine if that had happened on a cold winter day: the lights would have gone out," he said.

At a time when the Federal Council seems ready to reopen the door to nuclear power in Switzerland, with its recent counter-proposal to amend the Nuclear Energy Act, the country's energy future is at the center of concerns. But long before any nuclear revival, gas appears to be gathering the majority of support.

Over the course of this January, we will look at the reemergence of this energy source in people's minds. The point of view of Jacques Mauron, director general of Groupe E.

Do you share Christoph Brand's analysis of the serious risk of future electricity shortages in Switzerland?

If the winter 2024-2025 turns out favorably thanks to excellent hydrological conditions and the full operation of French nuclear power plants, Groupe E shares the Axpo CEO's analysis regarding the serious risk of electricity shortages in Switzerland, particularly during the winter months. Switzerland is heavily dependent on imports to meet its energy needs, which makes the country vulnerable to fluctuations in international markets and to the decisions of neighboring countries.

To mitigate this risk, we are actively committed to the development of renewable and local energies. Groupe E operates around fifteen hydroelectric facilities located in the plains and in the mountains, producing together more than 1 TWh of renewable electricity. In order to secure our supply in the short term, we concluded, in 2023, a fifteen-year electricity supply contract with the Swiss company ENAG. As of next year, we will benefit from 24.75 MW of continuous electricity, at a stable and advantageous rate for our customers.

This contract aims to reduce the winter energy deficit while waiting for renewable electricity production projects to come to fruition and for Switzerland to make up the considerable delay accumulated over the past decades. At Groupe E, we are developing several initiatives to catch up on this delay, notably a hydroelectric project in Fribourg, with Schiffenen-Morat, as well as in Upper Valais, not to mention our activities in wind power. However, procedures remain numerous, complex, lengthy, uncertain and costly.

We consider it imperative to invest in domestic renewable energy production to avoid shortages and ensure a reliable and sustainable electricity supply. This strategy, combined with better energy management through efficiency gains and raising public awareness of energy sobriety, will enable our country to achieve the energy independence it so sorely lacks today. Switzerland indeed has abundant resources in water, sun and wind to reach this goal.

Above all, it is essential to consume less and better. To that end, we offer personalized solutions aimed at reducing energy consumption.

What should be done to minimize this risk?

Above all, it is essential to consume less and better. To that end, we offer personalized solutions aimed at reducing energy consumption, notably for businesses and municipalities, which can thus reconcile their economic development with the energy transition. In addition, the deployment of smart meters will allow everyone to better monitor their energy consumption and optimize it.

We also rely on diversifying energy sources, modernizing infrastructure and intelligent grid management. By investing in renewable energies, particularly in projects that increase our production in winter, we reduce our dependence on fossil fuels. This also helps secure our supply by guaranteeing energy at an affordable price for our customers, even during periods of high demand or in the event of market disruptions.

Your colleague advocates for new gas plants to avoid any risk of shortage; what is your position on this issue?

The Cornaux power plant, built in 1966, operates mainly on natural gas, with light fuel oil used as a backup fuel. Currently, it is only commissioned at the request of Swissgrid for network balancing. Since February 2023, it has also been made available to the Confederation as a reserve power plant, in order to cope with a potential electricity shortage.

Given these elements, Groupe E emphasizes the development of renewable energies and the improvement of energy efficiency in order to guarantee supply security. We nevertheless recognize the importance of having backup solutions, such as the Cornaux power plant, to deal with possible shortages.

Depending partly on gas also means depending on Europe's goodwill to supply it to us. Shouldn't the issue of storage finally be addressed?

Gas represents only a small part of our production fleet, because our DNA is above all based on the production of electricity from renewable sources. By operating our own portfolio of installations, we uphold the tradition of sustainable and local electricity production, while offering residents a full range of energy services provided by the group.

Returning to gas, dependence on natural gas does indeed imply reliance on European imports, which raises concerns about supply security, particularly in times of geopolitical tensions or market disruptions.

Gas represents only a small part of our production fleet, because our DNA is above all based on the production of electricity from renewable sources.

In the energy mix targeted by Switzerland, rather than betting on gas, shouldn't more investment be made in hydrogen?

Indeed, Switzerland has embarked on an energy transition aimed at reducing its dependence on fossil fuels and promoting renewable energy sources.

Groupe E recently inaugurated a green hydrogen production plant in Schiffenen, the first installation of its kind in western Switzerland. This plant produces about 300 tonnes of green hydrogen per year, the equivalent of powering around fifty logistics trucks. The electricity used for this production comes directly from the turbine of the Schiffenen dam, ensuring a renewable and local energy source.

Green hydrogen offers several advantages in Switzerland's energy mix:

• Decarbonization: Green hydrogen helps reduce CO₂ emissions in sectors where direct electrification is difficult, such as heavy industry and freight transport.
• Energy storage: hydrogen offers a long-term storage solution, essential to balance the intermittent production of renewable energies like solar and wind.
• Supply security: Local hydrogen production allows Switzerland to reduce its dependence on natural gas imports, thereby helping to strengthen its energy sovereignty.

However, the development of hydrogen requires significant investments in production, storage and distribution infrastructure. In addition, production costs remain high compared with fossil fuels, although technological advances and economies of scale should allow them to be reduced in the future.

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