German Sun Beats Swiss Water

Photo retrieved from: www.ipsnews.net One of several water dams on Grimsel Pass in the Swiss Alps. Hydropower used to be profitable, but now revenues have shrunk drastically.

“The energy source that covers 55 percent of the country’s energy supply faces drastically reduced profitability, as electricity prices have sunk 20 percent again compared to the preceding year.

In the light of this market environment, the biggest Swiss energy producers Alpiq, Axpo, BKW and Repower are less willing to invest in optimising and enlarging their infrastructure. Repower has announced a 35 percent cut in investments in the next 10 to 15 years.

Andreas Meyer, media person at Alpiq, told IPS that the massive subsidies for renewable energy have destabilised the market, putting in question the profitability of hydro and thermal power stations and blocking further investments. Currently, Alpiq runs a divestment programme. The company is worried that the price deterioration will continue.

Further development potential of Swiss water power is disputed. While the government estimated four to five terrawatt hours, the World Wildlife Fund assessed only 1.5 terrawatt hours. In any case, the potential is quite low.

Nevertheless, Switzerland subsidises small hydropower stations with a capacity of less than 10 megawatt massively, irrespective of their efficiency and the ecological damage they may cause.

Due to the subventions, small water power projects have become cash cows. The WWF demands that these subsidies be stopped. “Building new power stations at previously unspoilt waters is absolutely silly,” water expert at WWF Switzerland Christoph Bonzi tells IPS. Today, 95 percent of Swiss water is used for energy production.”

Read more: IPS

 

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