Gas storage could serve to strengthen Switzerland's energy security.

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

To support his remarks, the director cited 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 the 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 appears 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 revival of nuclear power, gas appears to gather the majority of support.

During this month of January, we will look at the reemergence of this energy source in people's minds. The point of view of Christian Rütschi, deputy head of the Market Regulation section at the Federal Office of Energy (FOEN).

After the alerts that occurred in 2022, what is Switzerland's situation in terms of gas reserves?

On the gas market in Western Europe, the supply situation has eased compared with 2022. This relaxation is mainly due to increased imports of liquefied natural gas (LNG), strengthened Norwegian production in favor of Europe, as well as a decline in gas consumption observed over the past two years.

Since early November 2024, the fill level of gas storage facilities in Europe has been decreasing seasonally while remaining in line with the long-term average. However, risks persist for future supply, notably a possible decline in LNG deliveries, failures of gas infrastructure, or the expiration of the transit contract between Russia and Ukraine.

Switzerland's natural gas supply is currently secured. Gas transport in Europe is functioning as expected, and the overall system remains stable. The risk of strains on gas supply for the winter 2024-2025 is considered low to date.

At FOEN, do you consider today that the new structure put in place by Switzerland, providing for a reserve equivalent to 15% of the country's annual consumption, is adequate?

Switzerland imports all of its natural gas and does not own any seasonal storage facilities. The Federal Council has required the five main regional gas suppliers to establish, by 1 November 2024, a gas reserve equivalent to 15% of the average national annual consumption.

Thus, Switzerland will continue to store significant quantities of gas in facilities located abroad during the winter 2024-2025. This arrangement aligns with EU regulation applicable to member states lacking national storage capacities. Switzerland therefore contributes in solidarity to the filling of European gas storage facilities.

Moreover, the Federal Council again set a voluntary target to reduce gas consumption by 15% for the coming winter semester (October 2024 to March 2025), once again drawing on the rules in force in the EU. On 13 September 2024, Bern already extended the storage obligation for winter 2025-2026. On that occasion, the government noted a general improvement in the gas supply situation, thus allowing it to forgo extending the obligation imposed on regional suppliers to maintain gas purchase options for winter 2024-2025.

Various measures have already been prepared for implementation in the event of a severe shortage. These include switching dual-fuel installations, banning and restricting the use of gas, as well as rationing for gas-consuming industries.

What does the solidarity agreement signed between Switzerland, Germany and Italy imply?

Germany and Italy play an essential role in Switzerland's gas supply security. Concluding a solidarity agreement with these two countries would strengthen supply security for Swiss consumers.

This agreement — currently under review by the Federal Chambers — would allow Switzerland to benefit from the solidarity of Germany and Italy if needed, thus guaranteeing the supply of gas to protected Swiss customers in an emergency.

Beneficiaries would include, for example, private households, hospitals, or emergency services. In return, the other two countries could also ask Switzerland to supply them with gas in an emergency. The agreement would only be applied in the case of a severe gas shortage, after all possible measures to reduce consumption within the country have been taken.

Shouldn't Switzerland be more active in protecting itself against the risk of gas shortages in the future?

In Switzerland, gas supply is primarily the responsibility of the economic sector. However, if it is unable to manage a shortage on its own, the Confederation intervenes to stabilize the situation. The Federal Office for National Economic Supply (OFAE) is responsible for developing and implementing the necessary measures in the event of a gas shortage.

Various measures have already been prepared for implementation in the event of a severe shortage. These include switching dual-fuel installations, banning and restricting the use of gas, as well as rationing for gas-consuming industries.

Furthermore, since 2022, a crisis management organization for gas supply in exceptional situations has been set up. Placed under the authority of the OFAE, it acts on its instructions in the event of a shortage. These measures are designed to respond to the current gas supply situation, but can be adjusted according to the evolution of circumstances.

One of Switzerland's main challenges lies in its dependence on Europe. Shouldn't the implementation of storage solutions on national territory be considered?

In 2022, the Federal Council took note of a report on the construction of gas storage sites in Switzerland. That report concluded that in the medium and long term, gas storage could help strengthen the country's supply security within the framework of the 2050 energy strategy.

The report also concluded that only seasonal storage facilities, notably underground ones, could strengthen Switzerland's energy supply security. Moreover, these infrastructures should be designed to allow future storage of hydrogen and biomethane.

The Federal Office of Energy (FOEN) is currently studying future needs for storage facilities in the energy system, as well as the legal and financial conditions required for their construction.

To achieve the climate target of net zero greenhouse gas emissions by 2050, hydrogen should play an increasing role in the energy system over the coming years.

For example, Switzerland does not have a law on gas supply; shouldn't one be established urgently?

In June 2023, the Federal Council defined the outlines of a new law aimed at strengthening gas supply security, accelerating the transition to renewable gases and establishing clear rules for households and large consumers through a partial opening of the market. The Federal Department of the Environment, Transport, Energy and Communications (DETEC) is currently holding discussions with the stakeholders concerned.

To eventually replace fossil gas, wouldn't it be appropriate to integrate a green hydrogen network now into the future European network, while laying the foundations for synthetic fuels capable of facilitating energy storage and helping certain sectors decarbonize?

To achieve the climate target of net zero greenhouse gas emissions by 2050, hydrogen should play an increasing role in the energy system over the coming years. As a versatile energy carrier, it enables the valorization of renewable energies across all sectors and thus contributes significantly to a decarbonized energy supply.

In the future, hydrogen and electricity-based energy sources will be integrated into the energy supply where their use makes the most economic and ecological sense.

As part of its hydrogen strategy, the Federal Office of Energy has studied possible measures to promote the development of a hydrogen market in Switzerland. Among these measures is connecting the country to the future European hydrogen network. A national hydrogen strategy is expected to be published shortly.

This article has been automatically translated using AI. If you notice any errors, please don't hesitate to contact us.