Switzerland Power Report Q2 2016
BMI View: Switzerland's power sector will see some changes over the forecast period as the country shifts the balance of the power mix away from nuclear power and concentrates upon expanding non-hydropower renewable energy. As a result, we expect to see continued investment across several renewable energy sectors, including wind, solar and biomass, as well as the upgrade and expansion of existing hydropower facilities. Growth will be relatively slow, as lower power prices and limited consumption growth will continue to dampen investor interest. However, the government's ambitious renewable energy targets and commitment to the closure of nuclear power plants mean we do expect to see more projects entering the pipeline during the forecast period to 2025.
Latest Updates And Structural Trends
An element of uncertainty has been introduced into Switzerland's nuclear power policy following the news in March 2016 that the government has opted not to set a firm deadline for the closure of existing nuclear power plants.
Meanwhile BKW Group has confirmed the Mühleberg plant will be taken offline on December 20 2019 followed by a 15-year decommissioning programme, with an estimated cost of CHF800mn (USD801mn).
We are currently maintaining our forecasts for steady overall growth in the Swiss power sector with generation forecast to increase by 6.6% in 2016 followed by slower growth over much of the remainder of the forecast period. Expansion of hydropower and other renewables will offset the loss of nuclear power, and in 2025 total generation is forecast to reach 72.88TWh, up slightly from 72.12TWh in 2016.
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