Impact of Swiss Electricity Transmission Grid

This assignment delves into the multifaceted impacts of the Swiss electricity transmission grid. It examines the grid's role in ensuring energy security within Switzerland and its connections to neighboring countries. The analysis also explores the environmental consequences of electricity generation and transmission, considering factors such as greenhouse gas emissions and land use. Furthermore, the assignment investigates the socio-economic implications of the grid, including public acceptance of infrastructure projects, regional economic development, and potential impacts on local communities.

Running head: FINANCIAL TRANSITION
Financing Transition: The role of Wind and Solar Energy in the Swiss Energy Strategy
Name of the Student:
Name of the University:
Author’s Note:

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Abstract
This paper has been constructed in order to have an idea about the impact of role wind and solar
energy in Switzerland in accordance to the Swiss Energy Strategy 2050. The paper has explained
the background of the paper and accordingly the electricity market in Switzerland and their
neighbouring countries. The problem statement has even explained the areas and the factors that
have impact the electricity market in the concerned region. The research objectives and aims
have explained the areas where the analysis would be undertaken and the processes that would
be used in order to complete the paper in a precise manner. The literature review has provided
the solar and wind power plant sources and the electricity transmission system in Switzerland.
The pillars that are related to the Swiss Energy Strategy have even been addressed and
accordingly the process of electricity flow have been determined. The process of data collection
have been addressed and accordingly assessment of the data have been attained with the help of
which the paper has been able to answer the issues related to the flow of electricity, the price,
demand and supply of the solar, wind and hydro generated electricity in Switzerland and their
neighbouring countries.

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Table of Contents
Chapter 1: Introduction....................................................................................................................6
1.1 Background of the Study.......................................................................................................6
1.2 Problem Statement...............................................................................................................11
1.3 Research Aims and Objectives............................................................................................11
1.4 Research Questions..............................................................................................................12
1.5 Summary..............................................................................................................................12
Chapter 2: Literature Review.........................................................................................................13
2.1 Introduction..........................................................................................................................13
2.2 Wind energy and solar energy.............................................................................................13
2.3The role of the Swiss Transmission System.........................................................................14
2.4Energy Strategy 2050...........................................................................................................14
2.5The three pillars of Energy Strategy 2050............................................................................15
2.5.1 Saving energy and enhancing efficiency......................................................................15
2.5.2 Promoting renewable energies......................................................................................15
2.5.3 Withdrawal from nuclear power...................................................................................15
2.6DETC Strategy......................................................................................................................16
2.6.1 Fall in the consumption of resources and energy.........................................................17
2.6.2 Coordination of transport planning and the spatial development.................................18
2.6.3 Digitisation in Switzerland...........................................................................................19

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2.7Swiss Power market..............................................................................................................20
2.7.1 Legal Responsibility.....................................................................................................20
2.7.2 Liberalisation of the Swiss Power market....................................................................20
2.7.3 Structure of the Swiss Power Market...........................................................................21
2.7.4 Measures relating to energy efficiency.........................................................................23
2.8Current measurements in determining the cost-effective savings........................................24
2.9Financing approaches to the solar and wind energy.............................................................24
2.9.1 Private Sector................................................................................................................25
2.9.2 Public Sector.................................................................................................................26
2.9.3 Investment Sources.......................................................................................................26
2.10Fiscal preferential treatment...............................................................................................27
2.10.1 Renewable energy sources..........................................................................................27
2.11Need for energy..................................................................................................................27
2.12Set of measures for Energy Strategy..................................................................................28
2.12.1 Measures for raising the effectiveness of energy.......................................................29
Chapter 3: Research Methodology................................................................................................31
3.1 Introduction..........................................................................................................................31
3.2 Purpose and significance of the research.............................................................................31
3.3 Research Tools.....................................................................................................................32
3.4Research Approach...............................................................................................................32

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3.5Research Design...................................................................................................................33
3.6 Sample and Sample Size......................................................................................................34
3.7 Primary data collection........................................................................................................35
3.8 Secondary information accumulation..................................................................................35
3.9 Rationale for the decision of test.........................................................................................36
3.10 Research Outline................................................................................................................36
3.11 Research Bias.....................................................................................................................37
3.12 Data validation and reliability...........................................................................................37
3.13 Ethics.................................................................................................................................37
Chapter 4: Data Analysis and Discussion......................................................................................40
4.1 Introduction..........................................................................................................................40
4.2 Swissmod.............................................................................................................................40
4.3 Data......................................................................................................................................41
4.4 Scenarios..............................................................................................................................43
4.4.1 Base case.......................................................................................................................43
4.4.2 Swiss Delay..................................................................................................................43
4.4.3 European Delay............................................................................................................43
4.4.4 Full Delay.....................................................................................................................43
4.5 Model Assumptions and Limitations...................................................................................43
4.6 Results..................................................................................................................................45

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4.6.1 Base Case Development till 2050.................................................................................45
4.6.2 Overview on the Delay Scenario..................................................................................54
4.7 Detailed Impacts of the Network Extension Delays............................................................57
4.7.1 National Price Impacts and the Winner and the Loser of the Problem........................57
4.8 Impact of Swiss Electricity market and the Energy Transition...........................................59
Chapter 5: Conclusion, Recommendation and Future Work.........................................................62
5.1 Conclusion...........................................................................................................................62
5.2 Addressing the aims and objectives.....................................................................................65
5.3 Recommendation.................................................................................................................66
5.4 Further Research Work........................................................................................................66
Reference List................................................................................................................................67
Bibliography..................................................................................................................................75
Appendix........................................................................................................................................79

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Chapter 1: Introduction
In the modern economy there has been development of various new and improved
technologies with the help of which the countries and the organizations operating within them
have been able to develop their business. One of the essential elements that have been influential
for the development of the economy and the nations has been use of electricity. Electricity is
generated from various non-renewable resources like coal but with the advent of time there has
been an observation that human beings look to generate electricity from renewable sources like
water and solar energy (Baker 2015).
With the advent of time, there have been various assessments and analysis with the help
of which the electricity system of any country has been discovered and thereby the costs
associated with it and the potentials in accordance to the socio-economic environment can be
gathered (Abolhosseini and Heshmati 2014). This paper would even examine the supply mix and
the costs along with the carbon emissions and the supply flexibility.
This paper will therefore look to assess the role of renewable energies (wind and solar) in
the energy market of Switzerland 2050 and would look to assess the means to finance such
energies. The input projections and the outcome of various studies have been compared. The
paper would even explain the modelling structure of the papers along with their projections.
1.1 Background of the Study
This paper has chosen the “Swiss Energy Strategy 2050” and the function of renewable
energies and the means to finance it. The studies that are considered are published within the
time span of the year 2011 to 2013, which is after the adverse accident in the nuclear power plant
of Fukushima in Japan in the year 2011 and the succeeding decisions of the “Swiss Federal
Council” to progressively segment the nuclear power in the year May 2011. In the present time,

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the generation of electricity in Switzerland is dependent hugely on the nuclear power with the
present supply mixes of Switzerland and the countries that are neighbouring them.
The fundamental aim and goal of the “Energy Strategy 2050” with respect to the “Swiss
Federal Council” is supply of energy that permits them with reasonable prices and an extent of
security of the supply with respect to the current period along with the fall in the emission of
CO2 with respect to today (Nie et al. 2016). In accordance to the neighbouring countries, there
has been an observation that Switzerland has the minimum number of shares of the generation of
electricity with the help of the fossil fuels and from other sources that are renewable in nature
other than hydro power. Subsequently, the key focus in the present thesis is on the supply side
for the two largely undiscovered options to accomplish even partially with respect to the goals of
energy transition.
The main objective of the thesis has been to assess the electricity system and therefore
the paper that concentrates on the vaster economy and the overall energy system process of
Switzerland have not been taken into consideration (Nanda, Younge and Fleming 2014). The
assessment looks to assist the decision makers in evaluating the extent of options that have been
exhibited by various aspects of demand and supply of electricity and thereby looks to assist the
industry professionals and the researchers in order to enhance the case development and the
transparency of the framework.
For every scenario, the anticipated socio-economic restriction situations and the disclosed
key drivers are being assessed. A comparison of the parameters for instance potentials and costs
of the technology and the anticipated effective gains if it is disclosed is understood. A disclosure
on the explanations of the utilised modelling structures, their scope and the assumptions that is
implicit in nature (Shen and Luo 2015). The key groups of outcomes are assessed and compared

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that are inclusive of the electricity supply mix, emission of the CO2, demand of electricity, retail
prices and flattened establishment costs.
The thesis even has the idea to assess the sturdiness of the scenario outcomes in
accordance to the intrinsic options and the exogenous variability of the future system of
electricity. An associated issue is the import share in the periodic supply mix with their
inferences on the security of the energy (Bhattacharya et al. 2016). It is essential to assess the
how the process of decision making under the scenario of uncertainty is taken into consideration:
for instance the deterministic decisions or by adding in the future decision options.
In some current studies, the Swiss Economics assess various solutions and the
frameworks of the communication among the network and the market by considering the new
needs and requirements (Chirambo 2016). The suggestions for actions that have been attained
from the assessment addresses a further development of the regulatory model that looks to be
essential in the aspect of the incorporation of the Energy Strategy 2050, requirement of grid and
market as well as a probable EU agreement on electricity.
Because of their geographic location, Switzerland plays a significant role in the European
electricity system. As an outcome of the transformations in the supply of energy, numerous
nations in the cohesive European grid have thought of constructing a framework. It is seen that
the grid framework of Switzerland has been facing extra pressure (Lo 2014). Additionally, the
agreed enhancement of the decentralised renewable sources of energy leads to increased
flexibility in the Swiss electricity process. The answers suggest a traffic light process at the
distribution process. In these frameworks, the distribution network operators are in the
management of the congestion management and thereby coordinate the utilisation of the
flexibility among the transmission and distribution process.

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The electricity grid in Switzerland is sub categorised in to various transmission grids and
the distribution grids. The Swiss grid is the national grid organization and is accountable for the
functioning the grid reliably without judgement and for modernising, expanding and maintaining
the high voltage safety of the grid in an effective manner and in accordance to the environmental
aspects and the regulations that are already existent. In this aspect, the Swiss grid requires
strategic solutions to the social, political and economic issues in their environment (Gabriel
2016). The optimal interconnection among the system operations, the power market and the
conduction of the grid establishes the core of the strategy of Swiss grid. The sustainable answers
to the issues posed by the innovative energy policies can only be discovered by the close
management of operational measures, rules of the market and the expansion and renewal of the
transmission grid. The rise in the proportion of the renewable energy manufactures domestically
as an outcome of the energy reforms that leads to the rise in the volatility of the flow of
electricity on the grid. At the similar timeframe, the enthusiasm in the sector of energy is rising
(Rodríguez et al. 2015). The current system operations hence require to be developed. The
ability to react in a faster manner generates an increased extent of automation in the operation of
the grid and the utilisation of the new anticipated and risk frameworks. This explains that the
operations of the grid can be constructed in a more flexible and simultaneously more effective
manner in the medium term. The Swiss grid trains the employees for these rising demands with
innovative training perceptions and the utilisation of the simulators.
The protection of the supply will be raised by constructing a new control centre and
through additional investments in the virtual and physical protection of the facilities.
Furthermore, their attention has been concentrated on the fortification of the individual and the
environment which is essential for Swiss grid must make sure at every time. In the interest of

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the national economy and Swiss public, Swiss grid requires being one of the extensive grid
operators of Europe with respect to the efficiency and quality (Salm, Hille and Wüstenhagen
2016). With the strategic goal on the magnitudes of the grid activities and the market, Swiss grid
is ready for the issues that would be coming in the future. Conversely, in order to make an effect,
policies require to be incorporated in a successful manner. This can be attained together with the
qualified and dedicated employees and with the assistance of effective understanding with the
European partners and the Swiss electricity sector.
The integration which has been market oriented of the renewable energies, closed relation
with the European market of electricity and the development of the international pool of the
auxiliary service givers which has been the essential elements. In the long run, Europe requires a
developed design of the market that allows the incorporation of the renewable power and these
manages all the issues in the transmission grid in Europe effectively. The aim of the thesis is to
assimilate Switzerland more closely in the market of European power and to assist in the shape
of the future firm of the European power market in order to make sure the electricity supply and
authenticate the competitive nature of the of the electricity energy of Switzerland (Bobinaiteand
Tarvydas 2014). The construction of the effective market place for the auxiliary services even
raises the extends over the Switzerland borders, which improves the liquidity for Switzerland and
even enables the suppliers of Switzerland to undertake participation in the international markets.
Therefore, proper assessment of the electrical system of Switzerland is being undertaken with the
help of which all the aspects associated with the Swiss electrical system and the Swiss Energy
Strategy 2050.

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1.2 Problem Statement
The statement of the problem is the factor that is present with respect to which this paper
can be undertaken. Electricity is one of the major aspects with the help of which the
organizations and human beings enhance their lifestyle. The electricity grid of Switzerland has
been providing electricity to Switzerland and various other neighbouring countries. The aim of
Switzerland has been to enhance their power generation ability by improving the technological
tools and the cost of generating electricity. Hence, it is essential to project the level of electricity
generation that would be possible by the year 2050 and discover sources with the help of which
pressure on the renewable sources can be reduced and stress can be given on the renewable
sources thereby safeguarding the environment and the socio and the cultural aspects.The means
with the help of which the incorporation of the renewable energies can be financed is even
essential. This thesis would enhance the idea about electricity generation and thereby would
assist the researcher to understand what Swiss Energy Strategy would attain by the year 2050and
the means of financing the solar and wind energy generation.
1.3 Research Aims and Objectives
The research aims and goals concentrates on constructing the path that would be undertaken
by the researcher in order to find the process and the method that would be used with respect to
which the information would be gathered and thereby the thesis could be completed in an
effective manner. The aims and the objectives of the research are as follows:
 Assess the challenges that Government of Switzerland face with the security of energy
and the dependence of the fossil fuel energy
 Assess the method that would be undertaken with the help of which economic growth and
long term stability of electricity industry can be maintained

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 Assess the price, demand and supply of electricity flow in Switzerland and the
neighbouring nations in accordance to the Energy Strategy 2050
1.4 Research Questions
In this paper, the research question looks to undermine the issues that are pertinent to the
electricity strategy of Switzerland and the plans and initiatives that would be undertaken with the
help of which the Electrical Energy Strategy of 2050 for Switzerland can be established. The
questions are as follows:
Q1. What are issues that the Government of Switzerland face with the safeguarding of the energy
and the dependency on the fossil fuel energy?
Q2. How could the practices of business be enhanced to exploit the solar and the wind energy
sources for economic development and the stability that is long term in nature for Switzerland?
Q3. What are the impact of price, demand and supply of electricity flow in Switzerland and the
neighbouring nations in accordance to the Energy Strategy 2050?
1.5 Summary
This section of the paper has tried to discover the reason this topic is significant and
therefore the background of the paper is highlighted with the help of which topic can move ahead
and the geographic factors that is pertinent in Switzerland with respect to which the electricity
energy strategy can be constructed. The research aims and objectives would be ideal for
development of the paper with the help of which the review of literature and the analysis of the
data can be undertaken.

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Chapter 2: Literature Review
2.1 Introduction
This segment of the thesis has the intention of undertaking a comparison among the
researches and the suggestions that have been put forward by the other researchers. There have
been various researches that have been undertaken on renewable energies especially on solar and
wind energies and measures have been taken in order to evaluate the financial perspective that is
associated to the renewable. There have been various suggestions and solutions that have been
put forth by the researches and these answers would be helpful in undertaking this thesis paper
forward. This section would explain the wind and the solar energies and the existent
measurements that have been used in determining the cost efficient savings along with the
financial approaches that have been taken forward towards the wind and the solar energy. The
recommendations and the strategic issues that are associated with the renewable energies can
even be explained by assessing the thoughts and the perspective of the previous researchers.
2.2 Wind energy and solar energy
As put forward by Markard, Suter and Ingold (2014), wind can be addressed as air that is
in motion that takes place due to the natural features like the irregular heating of the earth’s
surface on the part that is being faced towards the sun, rotational movement of the earth and the
unevenness that is existent on the surface of the earth. The utilisation of wind energy has been
observant for a very long time like pumping of the water, movement of the ships and grain
grinding. In the present scenario, wind mills have been exploited significantly in the Great Plains
for the purpose of electricity generation and pumping of water.

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The solar energy that is manufactured during the time of sunshine at the time of day and
it complements the wind energy that looks to attain their optimum production at night time. This
energy can be exploited in order to manufacture electricity, hot water heating and solar cooling.
2.3 The role of the Swiss Transmission System
As explained in the previous section, the “Swiss transmission process” has a dual
function to play during the upcoming decades. In one of the aspect, it will look to be a core
aspect within the intended incorporated European electricity mechanism generally connecting to
the Central European market (Lienert, Suetterlin and Siegrist 2015). The other aspect involves
that it needs to assist the Swiss energy transformations by obliging the innovative renewable and
water based electricity generation while making sure that the stability of the system when the
currently operative nuclear plants are closed down successively after attaining the completion of
the tenure.
2.4 Energy Strategy 2050
The market of energy all over the globe is in a position of turmoil mainly due to the low
prices of the energy and the swift development and enhancement of innovative technologies. The
transformation in the climate is even having an impact on the economy, environment and society.
The Federal Council has been responding to the transforming scenarios in their Energy Strategy
2050 to make sure that Switzerland sustains to have a secured supply of energy.
The Energy Strategy 2050 is being incorporated slowly. By permitting the changes of the
Energy Act in the year May 2017, the Swiss voters have given the green signal to an initial set of
series of the measures to reframe the energy strategy and plan of the nation. These are looked
upon to decrease the consumption of energy, enhance the effectiveness of energy and encourage
and stimulate the utilisation of the renewable energies (Díaz, Adler and Patt 2017). Additionally,

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the development of new and innovative nuclear power plants will be restricted. By incorporating
this strategy, Switzerland can decrease their reliance on the imported fossil fuels and toughen the
domestic renewable energies. It can even generate jobs and increase the level of investment in
the nation.
2.5 The three pillars of Energy Strategy 2050
2.5.1 Saving energy and enhancing efficiency
The Energy Act has various numbers of enticements and incentives to minimise the
consumption of energy and enhance the energy effectiveness in the transport, real estate and
electrical gadgets. There is a greater prospect to undertake savings in these aspects. The financial
incentives and the technical policies and regulations aid in optimising the potential and minimise
the reliance on the fossil fuels that have been imported.
2.5.2 Promoting renewable energies
The functions and the role played by the locally developed renewable energies needs to
be improved and developed. These are inclusive of the conventional hydro-power and the
innovative renewable energies like the biomass, geothermal energy, solar power, wind and wood.
It is a healthy and effective process as the availability of the renewable energies will make
Switzerland less dependent on the fossil fuel imports.
2.5.3 Withdrawal from nuclear power
In accordance to the rectified and revised “Energy Act”, the development of new
“nuclear power plants” will be restricted. The current and the functional nuclear power plants
will be permitted to operate actively till the time they can do it safely but they would not be

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substituted once decommission is done on them (Blumer et al. 2015). Conversely, there is no
restriction on distinct technologies and research related to research can continue.
2.6 DETC Strategy
In the year 2030, Switzerland has the objective of remaining not only a sustainable nation
with the help of the effective framework and infrastructure but even an influential and attractive
location of the business with an enhanced life quality. There are several challenges and issues
that are existent over the strategy of DETC and the explanation of the key challenges is
dependent on the vast variety of patterns that ascertains the present scenario in the several
aspects of the operations and activities within DETC and they are as follows:
 Sustained growth of the population
 Rise in the mobility by roads, air and railway
 The transformation in the demand of energy from fossil fuels to electricity
 Rise in the development of housing
 Stabilisation of the emission of the greenhouse gases
 Increased consumption of the resources
 Sustained loss in the biodiversity and the related services for the ecosystem
 Rise in digitisation
 Rise in the communication that is undertaken through machine-to machine
 Constant and stable rise in the volume of the data.
These patterns together create three key issues and challenges for DETC which will
crucially have an influence on the performance of the tasks of the department.

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2.6.1 Fall in the consumption of resources and energy
The reframing of the energy system, attainment of the climate objectives, incorporation
of the strategy of biodiversity and the fall in the resource consumption looks for a restructuring
of the economy of Switzerland, which in turn leads to a rise in the diversity of challenges.
The regulatory mechanisms that are existent like the regulation of the product,
consumption of electricity, planning of the concepts, level of the emission limit etc needs to be
appended with innovative mechanisms with an incentive feature or with the voluntary aspects
(Becker et al. 2014).
The technology and the know-how transmission among the industry and the research
make use of the resources that needs to be assisted.
It is necessary to utilise the ecosystems like the forests, soil and water bodies in a
systematic and sustainable manner thereby securing their flexibility and maintain the service
availability over a longer period of time. The government has to generate conductive and reliable
model scenarios for the private investments in the area of resources and energy (Kruyt, Lehning
and Kahl 2017). The federal government and the municipalities along with the private sector
need to contribute towards the operational safety along with the safety in the aspects of disposal
and supply.
The rationality of the regulations and the policies at the federal level and even between
the municipalities and government requires to be enhanced as in many scenarios; the distribution
of the capabilities that has progressed previously is coming to their limits.

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2.6.2 Coordination of transport planning and the spatial development
In order to restrict the utilisation of the land and enhancement or development of the
expenses that is associated to the infrastructure of transportation; the efforts looked upon for
synchronising the transport planning and spatial enhancement that needs to be strengthened. This
is inclusive of numerous operations that include:
 At the federal level and as much as possible together with the road, air, rail transport
along with the human powered flexibility need to be more effective and synchronised.
 The entire transport policy has to be intertwined closely with spatial construction and
planning and the cantonal enhancement plans in order to minimise the traffic volume as
much as possible by restricting the urban extension and confirming increased quality
inner-urban development.
 The potentiality of the rise in the digitalisation for enhancing more effective utilisation
of the framework and space requires to be exploited.
 The infrastructure of the transportation sector is of greater significance for the business
attractiveness of a business area. It is hence, necessary to safeguard their effectiveness
and functionality with the exploitation of the innovative and smart ideas and concepts.
 The infrastructure of the road and railway needs to be financed over a longer period of
time in a calculative manner with the help of the fund solutions like the maintenance,
operation and development of the infrastructure.
 The transport planning and spatial development are becoming highly predisposed by
the current scenarios in Europe. This explains that there is a requirement for
strengthened cross-border policies and planning and the synchronisation of the
transport regulations and spatial enhancement.

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2.6.3 Digitisation in Switzerland
The communication and the information technologies and tools have been penetrating in
various aspects of the daily lives of human beings. Therefore, for DETC, the issue and the
challenge has been to manage and deal with the political accountability that gains from a
widespread framework transition that goes simultaneously with digitalisation.
A robust, comprehensive and secured infrastructure of network is a criterion for the
current development of rising mobile standards of working and living along with the products
and the services in the information community. The non-discriminatory and open access to these
networks needs to be guaranteed (Kienastet al. 2017).
The policies and the regulations that manage and govern the useof thekey internet sources
have been constructed at the international level. The federal government has to assist in ensuring
that the utilisation of the internet is reliant on non-discriminatory, democratic, liberal,
accountable and constitutional principles.
The technical, organizational, legal and safety associated restrictions to the incorporation
of the innovative and smart information and the communication technology implementation in
the real estate, energy sector, transport and the other model networks that have to be terminated
as much as possible. The model and framework scenarios require to be constructed that would
take into account the rise in the economic and social significance of the information.
Even in the transforming manufacturing and exploitation scenarios in the media sector it
is essential to sustain the media assortment and even the public services as a base for the
democracy (Sütterlin. and Siegrist 2017).

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2.7 Swiss Power market
This segment looks to address an insight of the Swiss electricity market. In association to
the research questions that have been constructed earlier, a closer observation to the overall
stakeholders who have been participating in the power market has been undertaken. All the
aspects associated to the Swiss power market has been explained effectively.
2.7.1 Legal Responsibility
In accordance to the Swiss Federal Constitution, the federal government and the cantons
are needed to advertise for a diverse, sufficient, economical, safe and environmentally friendly
supply of energy. The federal state and the government should even look for the suitable
governmental model for the energy industry to fulfil this task in the entire interest. The
electricity sector, the distributors, manufacturers and the providers is hence required to make
sure that safeguarding of the supply in the nation and the government should construct a
framework in which the power sector can work (Schlecht and Weigt 2015). It is now made clear
why the federal government has the accountability to construct an innovative model in order to
incorporate the proposals undertaken in the “Energy Strategy 2050”. Most of the cantons
conversely have made the electrical energy supply their legal accountability. In the end, the
supply of electricity is presently a public role or at least a huge public interest that is present.
This encouragement from the political point of view can be observed in the next section wherein
the method to liberalise the Swiss power has been explained.
2.7.2 Liberalisation of the Swiss Power market
In Europe, liberalisation of various electricity markets was initiated in the year 1990.
Prior to that, the state had control of an electricity market with the core paradigm. The
liberalisation idea was to unpack the manufacturers from the distributors to establish a free

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market. For the operations and free market of electricity policies and regulations have to be
implied which enhances the competition in the wholesale market. Furthermore, non-
discriminatory entry to the distribution and transmission networks for each supplier has to be
ascertained (Salm 2017). The electricity market directive of European Union was established in
the year 1996 and needed the full liberalisation of their member nations by the year 2003.
The goal of the Swiss government has been to maintain the Swiss electricity market
aligned with the European market. There was a new law constructed where 53% of the armlet or
the bigger customers with a level of consumption of over 100,000 Kwh per day can have their
power to choose their electricity supplier. Furthermore, the availability of the increased voltage
transmission process that can undertake the electricity over longer distances, transformed from
the utilities that was planned.
2.7.3 Structure of the Swiss Power Market
The power market of Switzerland is very diverse and complex. In order to have an enhanced
understanding of the structure, three questions are needed to be answered. They are:
 Which group of stakeholders have an influence on the power market?
 How many utilities are there specifically and how can they be categorised?
There will be five stakeholders group that will be presented, which will have a vital function
to cooperate in the electricity market of Switzerland. There are only limited utilities which do not
oblige the end clients directly, and therefore it is assumed that the distribution and the production
is undertaken by utilities in order to ease the network of the stakeholders. The small and middle
organizations and households along with the industries will create the form of the end customers.

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Pattupara and Kannan (2016) has cited that energy market is managed and administered by
the public authorities. The legislative authorities groups will acts as a representative of all the
federal government along with the government forms of the societies and the cantons which can
have an influence on the law related to energy. The management group has the SFOE along with
the communal and canton departments. The NGOs provide extensive knowledge about the Swiss
power market and are thus important for the future enhancement and development of the
electricity market of Switzerland.
There exist several utilities that are existent in Switzerland at the current time period. They
segment the country into various small pieces. The northern area has very thick population
framework and hence the utilities supply to a smaller region. In the mountainous area the supply
areas are much bigger. In comparison to Switzerland, Germany has structure of the power
industry of around 800 utilities and around ten times more consumption of electricity. With an
aggregate of around 4000 customers and an aggregate annual sale of electricity lower than 50
Gwh/utility the Swiss electricity market is very small (Volkart et al. 2016). The aggregate Swiss
distributor of electricity is the smallest managed energy firm in comparison to any other Western
European nation. It is essential that Switzerland has a huge number of the utilities in comparison
to the other European nations which have variable features.
The electricity sales of the utilities are different from the Swiss utilities. They have a range of
less than 1 GWh to over 8000 GWh electricity sold over the annual period. The largest utilities
cover around 60% of the overall demand of electricity, whereas the smallest utilities have around
10% of the market share. The distribution of the size of the utility of all the Swiss utility relative
members is provided in the tables. The connotation is a representation of around 400 from the
718 utilities. The 400 members provide a supply of around 85% of the electricity that is

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consumed in Switzerland. It is observed that half of the Swiss utilities have a sale of less than 30
GWh per year. The Swiss utilities can be segmented into five groups. It is explained that Swiss
utilities export and import electricity to and from the neighbouring nations. This activity of
trading creates the international power trade. All the power that has been imported is under the
six huge interurban utilities.
2.7.4 Measures relating to energy efficiency
There are various measures that are associated with the efficiency of the energy and it is
the role of the electrical sector and the government to undertake measures with the help of which
energy can be saved and the effectiveness of energy can increase. The consumption of energy
has enhanced with the advent of time and therefore measures have been taken in order to
mitigate such issues. The measures related to the energy efficiency for the various elements can
be explained below:
Buildings: The efficiency of energy can be undertaken with the help of the rise in the carbon di
oxide fee and development of strong buildings programme that would compel the industries to
take added initiatives.
Industry and Services: In this segment, the target agreements with respect to the Parliamentary
Initiative. This is a stern action with the help of which energy effectiveness can be maintained.
Mobility: In case of mobility, more stern and stringent Carbon di oxide emission policies and
regulations have been constructed (Knopf, Nahmmacher and Schmid 2015).
Electrical Appliances: There are have been several policies and regulations that are existent in
association to consumption and regulation with the help of which the household and the
organizations can be aware of making use of the electrical energy in an effective manner.

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Electricity Suppliers: There have been efficient and strict targets that have been constructed for
the suppliers of electricity with the help of which they construct their plans and policies and
move their processes forward.
2.8 Current measurements in determining the cost-effective savings
There are numerous quantitative processes that consider few variables when assuming the
cost efficiency associated with the efficiency of energy. The fundamental process to construct
precise and efficient return rate or the “Net Present Value” of a plan is by omitting the cost of the
resource energy with the help of the inflation rate along with adding in any kind of capital up-
front costs (Shmelev and van den Bergh 2016). Conversely, this process has been a failure in
considering any factors of risk discovered from the sort of financing funding that is used, distinct
resource risks and the industrial economic factors. Furthermore, it is essential to make use of the
extra quantitative processes for determining the return on investment and the savings associated
to the solar and the wind energy.
2.9 Financing approaches to the solar and wind energy
The key financing process of the Switzerland Government for the solar and the wind
energy has been assumptions which are 85% among the installations. The rest of 15% has been
exploited for the substitute financing methods. There are numerous financial processes that could
be exploited; conversely they require being efficient for that specific installation by looking into
the factors like the availability of the land for an enhanced use lease. By taking assistance of an
efficient data sharing and policies and regulations among every service, incorporation can be
equipped for undertaking proficient cost effective assessment decisions that are related to any
projects. There would an increased return on investment if the government of Switzerland

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consolidates their exertions of the solar and wind energy throughout all the services with an
extensive policy in divergence to a decentralised effort (Thellufsen and Lund 2016).
The fundamental aspect to understand the economic rivalry of an energy project is the
actual cost associated to a project and the assistance received throughout their lifecycle by
overlooking whether it is a renewable source or any fossil fuel. This perception is the base for
various decisions related to investments as it is reliant on the cost of the fuel, capital expense and
the financial expenses (CodinaGironès et al. 2017). These expenses are simultaneously is
dependent on the sum of the expense during the entire life of the plan to the value of the
electrical energy manufactured during the time period. The financial tools can be constructed,
incorporated and designed by the public and the private sector.
2.9.1 Private Sector
The government of various developed and developing nations have taken steps to
obligate and ensure a fall in the emission of carbon. For this intention, steps have been taken for
the transformation in the renewable energy. Conversely, the financial issues that are faced by
numerous developing nations are in certain cases are impossible challenges. The engagement of
the private sector is more than a requirement rather than an choice as this sector can assist and
even expedite the investment in the energy that is renewable with extensive opportunities and not
only for the nation but even for the businesses that are non-governmental. As explained by
Dermont et al. (2017), suitable political and financial model in order to coordinate with the
private sector in the projects associated with renewable energy. The risks and the perceivable
risks need to be explained in order to the gain the engagement of the sector effectively.
Conversely as Diazand Van Vliet (2015) addresses that the developing nations make use of the
concessional and public resources in order to gain the assistance of the private sector, even

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though it does not highlight entirely the various risks or the challenges of this tool to engage in
the experiences in the private segment. On the other hand, Bengtsson, Rachlew and Wagner
(2016) has explained that utilisation of this techniques to engage in the private sector has
twofold advantage of becoming justifiable and reducing the extent of variability that this could
incorporate in the industry; and supplementing the level of competition in the market of
renewable energy.
2.9.2 Public Sector
There are numerous developing nations that have been applied for the transformations in
the renewable energy due to the international obligation and agreement to minimise the
worldwide discharge along with generating the economic prospects and raising the admittance of
energy for the nation’s population. But in most of the developing nations do not have the
financial aspects to attain this. Conversely, Barelli, Desideri and Ottaviano (2015) have cited that
the developing country policymakers look to incorporate a specific financial tool or instrument
without in most of the scenarios assessing which combination or instrument of the techniques
will be suitable for the nation simultaneously. Affordability is looked upon as one of the key
problems that developing nations have faced during the time of incorporating renewable energy
for the intention of consumption.
2.9.3 Investment Sources
Conventionally, the renewable energies in Switzerland have generally two ways of
gaining funds and they are:
Borrowing from a bank: Loans are taken from the banks and the banking organizations will
concentrate on the payment of debt and will not focus on the comeback of the transactions. In

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these scenarios, because of focus on the banks, the earnings from these ventures is seen to be
lower than the ones in the various kinds funding process (Egli, Bolliger and Kienast 2017).
Equity capital: The equity capital process has provided expected returns because of the extent
of the risk undertaken. In certain scenarios, certain organizations may project 25-35% of the
returns because of the apparent risk versus the actual risk. Furthermore, the stakeholders provide
a greater pressure and the anticipations of the renewable energy projects rather than the
conventional financial institutions (Evins, Orehounig and Dorer 2015). The other processes to
finance with the help of equity have been through balance sheet funds and this is generally done
by the utility firms as a section of the corporate renewable energy plan and strategy. Conversely,
the distinct role play by equity may transform during the life span of the renewable energy
project as it has been refinanced by relying on the new and the existing players that would like
the advantage out of the project.
2.10 Fiscal preferential treatment
2.10.1 Renewable energy sources
2.10.1.1 Mineral oil tax exemption for bio fuels
Till the year 1st July 2008, the mineral oil exemption of tax was pertinent only to the bio
fuels that were manufactured domestically. After 1st July 2008, a modification of the law was
undertaken. The bio fuels are totally or partly exempted from the tax of the mineral oil if they
conform to a set of the social and environmental criterion. This can lead to a reduction of tax.
These plans and measures have to sustain the budget neutrality which is the reason why the tax
on gases and gasoline has been increased.

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2.11 Need for energy
Panos and Kannan (2016) has addressed that when it comes to energy, there is a matter
on which everyone looks to agree upon. The world is in need of energy for at least for the near
future and therefore the process with the help of which it will be manufactured and exploited will
be a significant factor in the environment, global economy in the near future. With this respect
Spiess et al.(2015) undertook an assessment of the information, editing a demand of the energy
from the bottom up, by the nation, sector and the mix of the fuel with an assessment of the
present scenario, historical data and the assessments that would be nation level. It is significant
to remember that this is organization as usual scenario. This does not project the huge
disturbances in either the utilisation of energy or production.
The global energy demand will sustain to develop. However, the growth will be sloth and
at an average of about 0.7% every year through 2050. The fall in the growth rate is mainly due to
digitalisation, lower level of population and the growth of the economy, enhanced efficiency, the
European demand and the global shift in the economy towards the services which makes lesser
use of the energy that the manufacturing of the goods. There has been an expectation that it
would take around 40% less fuel in order to fuel a car. By the year 2050, intensity of energy
which is the level of energy that is utilised to manufacture every unit of GDP.
2.12 Set of measures for Energy Strategy
The initial set of measures in Energy Strategy 2050 looks at raising their energy
effectiveness and highlighting the development of the renewable energies. Kopetz (2017) has
expressed that most of these measures constructed by the Federal Council need bringing in the
transformations to the law in the Parliament. In the event of the recommendations on this aspect,

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the parliament has rejected few of the measures which would hence be no longer be explained.
The measures that have been included are as follows:
 Measures for raising the effectiveness of energy
 Measures for the construction of renewable energies
 Transformations in the law on nuclear energy
 Aspects in accordance to the electricity grids
 Additional measures
2.12.1 Measures for raising the effectiveness of energy
In Switzerland it is seen that more 40% of the consumption of energy and CO2 emissions
that damages the climate are attributable to the real estate sector. With the help of the Federal
Governments and the cantons look to decrease the consumption of energy and even reduce the
emission of CO2. This is the reason why they subsidise the expense of the energy efficient
improvements in the real estates. The event is financed partially by the revenue from the CO2
accrued on the fuels.
2.12.1.1 Tax Incentives for building renovations
The investments that are carried out in the buildings in order to enhance the energy
effectiveness are tax deductible in the current time period. With the incorporation of the new
Energy Act, it will even be possible to exempt the expenses of the demolition to construct a new
building. By staying together with the expense associated with energy developments, the cost of
demolition can be subtracted even in the next two periods of tax if it is not fully possible to offset
the expenses in the year within which it was undertaken. The goal here is to inspire the overall
innovation instead of the partial development which is until now has been more influencing in

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the term of taxation (Berntsen and Trutnevyte 2017). The overall development is more efficient
from the mind-set of the energy effectiveness.
2.12.1.2 Emissions specifications for motorised vehicles
The vehicles that are motorised is accountable for over a third of all the consumption of
energy and emission of CO2 in Switzerland. The “Energy Strategy 2050” gives a strengthening
of present specification of the emission (Boie et al. 2016). As a result, the permitted limit for
CO2/km emission for the new passenger motors on the road will be minimised to an aggregate of
95 g CO2/km by the end of the year 2020.

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Chapter 3: Research Methodology
3.1 Introduction
This segment of the paper, perceives different sorts of strategies, outlines, and
methodologies that require to be investigated for increasing reasonable results for the paper.
Besides, the equipment for finishing the methodology of the research that have been accumulated
is useful to coordinate the research methodology that is being set up by the researcher so as to
achieve attractive result (Taylor et al. 2015). Furthermore, finding the approach of the thesis
does not really provide exact research results. Conversely, these revelations help the researcher
to pick up a precise course, which helps in collecting the fact and accuracy of the thesis.
Additionally, the methodology of the research helps the thesis in accomplishing the positive
opportunities, which upgrades the result achieved by the researcher.
3.2 Intension and significance of the research
The purpose of the research looks to dissect and understand about wind and the solar
energy strategy and the planning of Swiss Energy Strategy 2050. This thesis paper is principally
connected with the combination of the wind and solar energy of Switzerland. It is fundamental to
decide the utilities of the wind and solar energy and their impact electrical energy in Switzerland.
The methodology of the research and its influence have been to answer the research question that
has been recognized in the paper before and to achieve the objectives and aims that have been
addressed in this paper earlier. It has been viewed that a research is embraced with a specific aim
to discover the appropriate results that are associated with the issue and resolve the research
issues that were addressed by the researcher (Mackey and Gass, 2015).

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The preciseness of the research is suitable for theconclusion of the research and acquiring
the most exact outcome so the investigation of the Swiss Energy with respect to wind and solar
energy can be resolved as for their operational activities.
3.3 Research Tools
The research equipment involves the association of the mechanisms that are ideal for
finishing research thesis. It is seen that the researcher has alternatives for utilizing numerous
sorts of research apparatuses and the analyst exploits of the most suitable instrument. Each of the
research instruments utilized for the conclusion of the paper has their own particular feature that
would be discussed later in this paper and hold an essential part for the conclusion of the study in
an extensive manner in order to ascertain the real and effective results.
3.4 Research Approach
The procedure of research approach is most crucial base for undertaking the research for
attaining the genuine and practical outcome for the research paper. In this situation, Brinkmann
(2014) clarified that the approach of the research has assisted the researcher in perceiving every
step for undertaking the operations that are demanded for the conclusion of the research. The
research approach in a general sense involves two sorts that is inclusive of the deductive and
inductive research approach. As per Flick (2015), the inductive approach has helped the
researcher to set a creative arrangement of structure and theoriesafter addressing the outcome of
the research. In spite of this statement, Silverman (2016), are in the idea that the deductive
approach has focused on breaking down the structure and the theories that are as of now
accessible by linking it to the present paper by undertaking help from the data that has been
gathered.

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It has been seen that as the present paper focuses on evaluating the effect of wind and
solar energy with accordance to the “Swiss Energy Strategy 2050”, the researcher has exploited
the deductive approach so as to finish the research effectively. It is because of the fact that the
researcher has influenced the use of qualitative and quantitative assessment for attaining the end
result for the study. The quantitative evaluation is embraced by examining the appropriate
answers that have been received from different sources. Moreover, positivism philosophy is
predominantly associated to the quantitative data assessment, with the help of which the
information gathered will be examined with the assistance of the previous patterns and presently
the models which are available and the data that have been demonstrated. In this manner, it is
seen that deductive approach has been considered to be one of the best approaches in order to
gain the actual and the effective results for the thesis paper.
3.5 Research Design
The research design offers to the researcher a possibility of guiding the paper so as to
achieve a particular target in view of the research objectives and aims. As clarified by Vaioleti
(2016), the research design helps the researcher to help with certain reference by limiting the
explained outcomes, in which the segment of the whole research that is still remaining can be
performed as for the goals that have been constructed before. The research design comprises of
three sorts that includes explanatory, descriptive and exploratory research design. Explanatory
research design assists in clarifying the circumstances and the end results by predicting the
feasible future consequences of the process that is a persistent procedure.
Exploratory research design is primarily undertaken in order to identify the factors that
are associated with the generation of the paper. It mostly concentrates on the inborn factors of
the research problems with a distinct end result to stand up to the issues of the paper. It has been

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viewed that descriptive research design helps to characterize and investigate the issues and the
problems that have been confronted in the research paper. It mainly provides the researchers an
opportunity to increase the knowledge and have an understanding of the research issues.
The present paper has viewed in surveying the impact of wind and solar energy and the
Swiss Energy Strategy 2050 keeping in mind the end goal to coordinate a course with the
assistance of which the outcomes that is desired can be found. Hence, this paper contains a point
by point clarification of the impact of solar and wind energy and the “Swiss Energy Strategy
2050”. This paper concentrates on the parameters that have an impact of wind and solar energy
and the “Swiss Energy Strategy 2050” and even concentrates on making various of the
recommendations for understanding the thoughts with the goal that the research that can be
concluded. In this way, the researcher has influenced the use of descriptive research design in
order to outline whole paper as descriptive research design answers all the data effectively and
helps the researcher to get learning about every detail. The other processes may not be used as
the other designs have not been able to answer the issues and the factors in order to complete the
paper in a precise manner.
3.6 Sample and Sample Size
Sampling refers to a component with the assistance of which the variables who have been
selected for finishing this research are designated from a substantial set pool of information
sources. Sampling helps the author to choose the valid resource of the primary and the secondary
information by remembering the end aim in order to blend with the real data, which is in
resemblance with the research goals and aims. The procedure of probability sampling has been
utilized as the people and the data that have been associated with the electrical energy sector
associated with the wind and solar energy (Smith 2015). Hence, these respondents would provide

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real and authentic answers in accordance to the topic. Subsequently, quantitative data has been
collected by using the probability sampling. This sort of sampling addresses the procedure in
which the desired employees and the management are chosen with the end goal of the
maintenance of the paper with the assistance of the assessment of the data.
3.7 Primary data collection
The researcher has gathered the primary data by assessing the employees and the
respondents associated with the wind and energy of Swiss Energy Strategy. For finishing the
research, the researcher has constructed an effective questionnaire that consists of close ended
questions and open ended as well. Close ended questions addresses to the questions where the
options are given to the respondents within which they need to choose their answer. Then again,
open ended questions refer to the questions that have been confined so the respondents can
record their own particular view with the goal that an extensive answer can be accomplished. In
this regard, Panneerselvam (2014) has clarified that the survey is the most suitable methodology
to gather the quantitative data as it causes the researcher to get exact data from a reasonable
sample size. The researcher as a most has selected the ones who make use of this kind of energy
in Switzerland. On the other hand, the researcher has even given out the questionnaires by
sending messages to the participants of the Swiss energy. The respondents were given a specified
time period within which they have been asked to submit the answers or else the answers would
not be granted.
3.8 Secondary information accumulation
The researcher need secondary data too keeping in mind the end goal to complete this
paper in a precise way and consequently have gathered the secondary data from a few sources
like the journals, annual report, electronic journals and internet sources that gives data regard to

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the Swiss Energy Strategy 2050. The researcher has even gathered the feedback that the
consumers of electricity in Switzerland. This gives reliable data as the feedback given is
authentic (Gast and Ledford 2014). In this research, the literature review is constructed by
gathering the secondary information by remembering the end aim to connect with the final result
of the paper in understanding objectives of the paper.
3.9 Rationale for the decision of test
The rationale for selecting this sample that is associated with this paper is to gain an
understanding of the objectives of the paper. There is a presence of knowledge gap which is
concerned with the suggestions that have been provided by the past researchers and the data have
been collected with the help of a distinct aim to conclude the research thesis. The other factors
have been to answer to the problems that have been explained.
3.10 Research Outline
The researcher in this section looks to concentrate on the research goals in association to
the research methodology. Furthermore, the researcher looks to use competent research tools and
equipment with the help of which effective results can be attained. The thesis moves forward
with the help of positivism philosophy which is helpful in addressing the preciseness of the
research process. Additionally, the researcher has looked to acknowledge the deductive process
for this thesis that can be influential in providing the results that would be helpful to the
researcher. Robson (2014) explained that the deductive process assists in ascertaining the actual
end result for the research. The researcher has selected descriptive research design for the thesis
in order to fulfil the objectives of the thesis.

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3.11 Research Bias
This research thesis is not associated with any kind of biasness as it is observed that the
researcher has looked to conclude the thesis effectively and authentically. The presence of any
kind of bias may create results that are unproductive and therefore it would not be useful for the
completing the thesis in a precise manner. The word bias addresses of being partial and therefore
giving certain benefits that would make an ineffective thesis paper. In this thesis paper, the
researcher has restricted any sort of biasness and thereby revealing that the researcher has moved
ahead with the research by implying the ethical codes.
3.12 Data validation and reliability
The researcher has looked to collect the data from the sources that have been found to be
accurate. The researcher has looked to maintain a dependability of the information that has been
collected by utilising certain software in order to assess the data. Furthermore, the researcher has
even ensured that the most precise and true sources like the internet websites have been used for
the attainment of the data and choose the employees and the consumers for addressing the
research issues. Data validation is the process of making sure that the research moves ahead on
correct useful and authentic data. The research uses the validation constraints and rules for
validation that assess the meaningfulness, security and the correctness of the data that is gathered
for the research method. However, reliability addresses the preciseness and correctness of the
data that has been recorded so that efficient and correct outcome can be attained in accordance to
the thesis paper.
3.13 Ethics
It is necessary to have knowledge about the ethical codes that are used by the researcher
so that efficient measures can be taken for completing the thesis in an effective manner.

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everyresearch that are constructed by the researcher is associated with the understanding of the
cultural components and the several aspects that are helpful for framing a true and fair research
paper. It is observed that cultural considerations have crucial function to perform in order to
determine the several elements that would be effective in gaining knowledge about the impact of
wind and solar energy in the Swiss Energy Strategy 2050. There is an existence of a specific
process that needs to be followed in order to align with the cultural and ethical considerations. It
is observed that the area where the assessment would take place and the ethics that are available
in that area are scrutinised. Henceforth, the ethics that are the most ideal for the thesis is
evaluated and accordingly implemented in order to have an effective idea about the course and
the path that would be followed for concluding the thesis paper. The ethics of the research relates
with the secondary data and thereby bring out the legal, complex, exclusive, moral and the social
problems. The research moral is specifically worried about the valuation of the moral issues that
are constructed in circumstances when the various sources are considered as the unique answers
of the research. The research ethics are understood as the goals and the methods that serve the
interests of the topic and the community.
The research ethics that are seen all over the society are challenged by the issues that
explains the global concerns in accordance to the domain that is related with the impact of “solar
and wind energy” in the “Swiss Energy Strategy 2050” and this is associated with the
technological development in these business sector. It is observed that it is necessary to assess
the ethics and manage the work of the researcher in accordance to the contact of solar and wind
energy in the “Swiss Energy Strategy 2050”. There has been an observation that the secondary
data is collected is synchronised with the research ethics and hence several operations are
undertaken with the help of technological tools that are available to the researcher. The

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evaluation is taken forward in regards to the research ethics and codes that are related with the
result of solar and wind energy in the “Swiss Energy Strategy 2050” in order to gain some
understanding about the factors that have been looked upon for the Swiss Energy Strategy 2050.
The detailed consent is framed in order to gain the permission about the data that is
utilised for the generation of the research thesis. It is observed that non-disclosure data along
with the reliability of the research that is undertaken is initiated by revealing the data source and
thereby assist in the construction of a true and fair research thesis. The risks that are related to
the research thesis are addressed as well so that the researcher can take measures that are
effective for the construction of a true and fair research. It is seen that after finding out the risks
associated with the secondary data the researcher looks for the solution for these risks that would
be incorporated in order to reduce these risks from the research process.
The storage process of the data is related with undertaking measures so that the data that
has been gathered can be preserved in an effective manner so that these data can be later used for
any further researches. The data that is collected is the key source for concluding the research
paper. The ethics even assists in the final completion and in that manner may avoid the other
researchers to utilise the similar data in order to conclude the research in an effective manner.

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Chapter 4: Data Analysis and Discussion
4.1 Introduction
In order to have some idea about the impact of the “network extensions” on the “Swiss
Energy Strategy 2050” it is essential to depend on a arithmetical framework of the energy
market of Switzerland known as Swissmod and is inclusive of an explained transmission and
representation of hydro power. The general framework set up will be explained in this section the
paper and thereafter information on the data estimation and conditions will be explained.
4.2 Swissmod
The simulation is undertaken with the help of Swissmod, which is a arithmetical
presentation of the comprehensive market of Swiss electricity which follows a general electricity
market transmit and the network framework. The Swissmod is constructed as a “linear
programming framework” that minimises the overall cost generation under the provided demand
scenarios even though the market switches to demand that is in nature elastic and maximisation
of wellbeing and therefore towards a quadratic model for such condition assessment. The
framework is in nature deterministic and therefore estimates a competing market with an
effective prudence and makes use of hourly resolutions for an entire year. Swissmod
encompasses the entire diffusion mechanism of Switzerland along with their interconnections to
the other neighbouring nations (Facchinetti et al. 2016). The demand and the generation is
assigned on a nodal process in order to print a projection of the congestion elements. The
constraints related to the network are modelled explicitly by following the DC load flow process.
The high dependency rate of the “Swiss Electricity Market” on the hydro production a
specific attention on Swissmod is given in the illustration of the various water power plants and
its relations. The framework detains all kinds of hydro power electricity in Switzerland like the

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storage, run of river within a network that represents a process that is hydraulic in nature in
Switzerland that has all the lakes and the rivers in the nation. The framework even contains the
solar panels and the wind energy mills that are available in the nation in order to have an idea
about the total number of wind energy generation mills and solar energy generation systems. In
order to undertake the assessment, certain adjustments were made in the basic framework setup
by adding in an “elastic linear demand” process and subsequently move to maximization of
welfare rather than minimisation of the expenditure. Additionally, there have been changes in the
explanation of the variable cost of traditional power projects in the neighbouring nations in order
to increase the quantity (Gurung et al. 2016). This is to address that the number of power plant
portfolios in the nations are averaged and thereby comprises of the smaller power plants that
have different efficiency level and hence have different variable costs as well. As most of the
effective power plants of one of the technologies in a market that is perfectly competitive would
be dispatched initially, this becomes equal to estimating the variable expenses which is rising in
quantity.
4.3 Data
The paper has looked to depend on the 2012 year calibration related to Swissmod as the
initial scenario. The general presentation of the Swissmod transmission grid is undertaken and is
then adjusted by making use of the location based information from the coordinated project of
mapping. The line indicators are generalised for every level of voltage. The lines that are “cross
border” are based in the “ENTSO-E” grid map and “ENTSO-E” information. The information
about the existent “Swiss power generation” portfolio are gathered from the “SFOE” and is
supplemented with the wind, solar and hydro information from several sources. The primary

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framework of the European creation abilities are gathered from the “ELMOD” framework
society and is upgraded by utilising the data that is available from ENTSO-E.
The information comprises of singular power projects of the nearing nations to one
individual preventative power project per constructed neighbouring nation sub area for every
innovation. Conversely, to account for the variations in the effectiveness within every averaged
power plant a “linear efficiency curve” is calibrated within every expertise that ranges in
between the two generalised divergences for the aggregate effectiveness.
For the assessment of the network expansion projects the paper has looked to make use of
the “Ten Year Network Development Plan” by “ENTSO-E” along with a more explained data on
the Swiss network extension plans that have been disclosed by Swiss grid in their website. In
order to understand the generation of the fuel and CO2 capacities the price pattern in the
European Union and the Energy Road Map 2050 has been used which is dependent on the
PRIMES framework. An assumption of the equal fuel prices all over the neighbouring nations of
Switzerland has been considered (Huber et al. 2017). In case of Switzerland, the power plant
portfolio has been used for the examination of the Energy Strategy 2050.
For the purpose of wind and solar feed on an hourly basis, the country level information
have been used which has been created from the historical data of the weather. In case of local
allocation of the renewable within Switzerland variant prospective have been used and an
assumption is made that the capacity of the renewable is constructed in a proportionate manner
to the domestic shares of the potentials. The allocation of wind is based on a specific model and
the solar energy is based on the equivalent distribution.

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4.4 Scenarios
In order to assess the function of Switzerland within the electricity transmission grid of
Europe and the effect of the “network extensions” on the framed process, it is essential to
replicate a series of conditions with various spatial and chronological features.
4.4.1 Base case
It represents the anticipated realisation of the TYNDP by following the above explained
European Union and Swiss pattern conditions. The base case is a representation of the
benchmark in accordance to which the delays are assessed.
4.4.2 Swiss Delay
In association to the foundation case all the intrinsic “Swiss extensions projects” that are
exclusive of the “cross border lines” that are postponed by 5 years and accordingly by 10 years
respectively.
4.4.3 European Delay
In association to the foundation case, all the European expansions are inclusive of the
framework and all the other “European Union Swiss cross border extension projects” that are
postponed by 5 years and 10 years.
4.4.4 Full Delay
In association to the foundation case, all the events of extension are postponed by 5 years
and 10 years respectively.
4.5 Model Assumptions and Limitations
The mathematical model that has been presented needs simplifying estimations and
limitations to keep the framework solvable and answerable and thereby have an impact on the

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results that are attainable. The Swissmod model is in nature deterministic and anticipates an
environment that is perfectly competitive. In reality, the gathered prices seen in the market will
address the lower frontier on the actual global market results as encouragements from the
scholastic aspect and the strategic attitude of the firm is omitted (Huertas‐Hernando et al. 2017).
In the same manner, the parameterization is dependent on the aggregate historic level of demand
and representative renewable values of injection which adds to the sarcasm of the ultimate
events.
Geographic restriction to the “Central Europe” and the neglects towards the export and
imports over the geographic aspect is likely to lead to over estimation of the fluctuations in the
prices within the countries that are stimulated. On the other hand, the averaged representation of
the neighbouring nations of Switzerland and the deleting unit commitment elements is likely to
undervalue the volatility of prices during the time that has swift changes in demand (Jones 2017).
As the framework is not inclusive of the investment model, the creation, transmission and
the demand framework is explained externally. Hence, the gathered prices of the market do not
essentially be sufficient to refinance these capacities. Additionally, the extensive interactions
among the three segments of the market are obtained i.e in scenario of postponement in the
“network extension” it generally looks to anticipate that he estimated investments in the power
plant will have an impact.
Finally, the structure of Swissmod is dependent on a point of view presentation of the
“Swiss transmission process” and accordingly under the present market scenario, system
elements are ignored on the comprehensive extent and controlled with the help of re-dispatch.
The virtual market outcomes reveal the most favourable plant dispatch on the provided system

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limitations and can be communicated as corresponding to a later re-dispatch assessment that
explains the essential re-dispatching expenses into the regional comprehensive prices.
As a whole the virtual outcomes need to be apportioned in order to address the aggregate
market scenarios provided the fundamental price and ability information but will be a bit low on
the effect of the short term programs and indecision.
4.6 Results
In this segment of the paper, initially it will current the foundation case outcomes up to
the year 2050 addressing the aggregate anticipated trend of the market if the network extensions
take place as anticipated in the TYNDP. Thereafter, a review of the general discoveries of the
various delay conditions concentrating on the average outcome would be undertaken. At the end,
the research would explain an explained implication of the delayed network investments by
concentrating on the impact on the nationwide rents, the function of the European harmonization
and the effect on the “Swiss electricity market”.
4.6.1 Base Case Development till 2050
In the aspect of the framework concentration regarding Switzerland and their
neighbouring nations and the extrinsically explained enhancements of the creation of abilities,
prices and demand, the outcomes are mostly forced by the anticipated European trends of the
energy. The huge rise in the available RES abilities by the three factors between the year “2015
and 2050” also explains into the similar rise in the overall “RES” creation till the year 2050.
Simultaneously, the traditional power plants hugely reduce their energy manufacture. The
nuclear manufacture reduces to significantly at 65% in the year 2050 in accordance to the value
that is seen in the year 2015 because of the phase out in Switzerland and Germany. The lignite
and coal fired plants go through a huge fall of about less than 30% in the year 2050 in

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accordance to the figures obtained in the year 2015 while on the other hand in the same time the
gas operated projects raise their manufacture by 80%. In this scenario, the transference from the
coal to the gas is undertaken by the anticipated increase in the prices of the permits till 2050. As
the price of the fuel remains consistent in the “European energy” patterns the rising price of the
permit gradually renders the coal uncompetitive in comparisons to the natural gas.
Figure 1: Average dispatch and electricity price developments till 2050.

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The effect of anticipated “network extensions” is observed at the best when a comparison
is made among the various prices that is seen in different nations. Within the structure
framework, France has faced the inferior prices than the other nations (Lund, Mikkola and Ypyä
2015). It is primarily because of huge low expense creation abilities of the hydro and the nuclear
power projects and rise in the “RES capacities” and the omission of the exports of electricity to
the other nations and the limits that have been levied by the conduction process. Subsequently, in
the constructed dispatch that has been short run; the prices of the French electricity are explained
by the regional low variable expense creation when the blocking limits the process of exports in
France the lower priced market in the framework grid.
The other remaining nations disclose a closer associated level of price that is still hugely
explained by the production of fossil fuel as the marginal price setter. Till the year 2025 a
junction of price can be seen and from the year 2030 the prices will diverge slowly. This explains
the impact of the anticipated TYNDP extensions as the price will converge logically when there
exists small diverge and congestion as the cross-border restrictions are connected again. In one
hand the organised “network extensions” explain the anticipated issues of the congestions of the
coming era and if it is realised, they are able to satisfy their aim and bring the prices altogether.
Conversely, the market framework sustains till the year 2050 with a changed creation mixture
while the system stays unaltered from year 2030 and hence. The transformed market scenarios
will even have an effect on the network they will require additional investments that are not even
highlighted in the existent plans of extensions.
Investigating the “cross-border flows”, the function of the exporter of France becomes
clearer. On the standard, France maintains their exports on comparable degrees throughout the
observation time frame. The nuclear generation even falls in France and this is compensated by a

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huge rise in the exports at the time of daytime and subsequently deformation of prices in the
electricity market of Central Europe. In the long run up to the year “2050” the present
comparatively stable export scenario in Germany that looks to move towards an increased share
of import due to the final nuclear part out and the humble “RES” rise in accordance to the
different nations. The next huge transformation in the export balance can be seen in Italy. It is
known that Italy is still dependent on import on a yearly aggregate, the absolute level fall
distinctively till the year 2040 with a rise later on. This is even an impact of the rise in the
abilities of RES. The huge share of the solar power creation ability being incorporated, Italy is a
consistent export related nation in daytime and requires imports at the night time as well
(Orehounig et al. 2014).

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Figure 2: Development of the Cross Border Flows
Switzerland being a passage nation is impacted logically by the enhancements that have
been occurring in the neighbour. Conversely, provided their huge reliance on hydro power, their
own nuclear part out routine and their rise in the “RES capacities”, the “cross border” scenario
evidently explains this conjugal pattern. The wind and hydro dependent creation mix creates
actual export scenarios during summer and import dependent during the winter times. This

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fundamental segregation is present till the year 2050. Up to the year 2035, nuclear part out
creates a common fall in export level and rise in import dependence during the winter times.
Conversely, the rise in the “RES capacities” remunerates the impact of part out on an aggregate
until the year 2050. The aggregate balance explains the outsized migratory changes than the
present process. In the months of summer the increased water power generation doubled with the
rise in the solar power creation creates a key rise in exports and during winters the reverse takes
place and thereby leads to a rise in the level of imports than in accordance to the present
scenario.
The key pattern in the hourly trend of flow of electricity through the land of Switzerland
becomes clear when comparing the flow of electricity during the summers on the “Italian Swiss”
border and the “Swiss-German” border in the year 2015 and even in the year 2050. During the
year 2015, the solar peak during the afternoon still shoves from Germany to the south and this
hour trend transforms entirely to the reverse way in the year 2050. By that time, the substantially
owned solar capacity of Italy which gains due to increased solar emission and therefore increased
creation factors makes Italy to move extremely to the electricity from “Switzerland” at the time
of tip solar hours and on the other hand Germany is importing from Switzerland (Soland et al.
2017). As a whole, the overall development of the flow trend until the year 2050 in the Central
Europe in the summer times and a lower degree even in the winters is governed by the solar
generation.
By briefing the “cross border” flow scenario until the year 2050, reveals key extent of
shifts. There have been distinct values for all the framed border connections that have been
explained before netting. Along with the “Swiss-French border flow” that persists dominantly
one way directed, all the other “Swiss border” experience huge export and import figures during

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2030 and the year later on. This addresses the expressed increased unpredictability in the entire
process due to rise in the amount of the irregular creation.
Water power remains a compelling factor for the “Swiss electricity market”..In the
previous era the “Swiss hydro energy” along with giving out basic load ability from the run-of-
river projects, has been a safe furnish during the demanding hours of noon and evening and
propelled the storage space plants and relocated the night time electricity to the peak for the
coming hours of the day. This scenario has changed by now by the present solar determined
price enhancements in the electricity market in Europe and would sustain to change till the year
2050. As explained in the figure below the pumping time of the Switzerland hydro power plants
will move towards the hours in the day time when sufficient solar creation is available.

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Figure 3: Solar Power as Future Driving Factors of Swiss Border Balances in summer

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Figure 4: Sum of the Hourly Pumped Electricity by Season
On the other hand, the preserved energy will be exploited when the “RES capacities” are
inadequate to encompass the degree of demand, especially during the time of morning and the
peak hours at the evening. The hours during the night time is a key time for the purpose of
storage during the month of winter but significant amount of the pumping activity will be
transmitted to the summer daytime (Teufel and Teufel 2014).

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Interestingly, despite their activities of pumping, during the afternoons of summer in the year
2050, “Switzerland’s summer exports” even peaks during the hours in the afternoons. This is
associated to the own solar abilities of Switzerland and the matter that water creation increases
during the summer months and the pumping ability not being huge enough to gain this adequate
supply.
The transformations in the everyday trend of the pumping activities are vital; the
migratory trend remains unaffected for most of the time. The energy that is stored is exploited in
a few days and not allocated among the seasons (vanMEERWIJK et al. 2016). It becomes vital
when investigating the curve of the annual storage level. The present trend explains the low level
of storage in the months of the late winter and in the months of spring and increased level after
the melting of the Alpine snow in the delayed months of summer. The trend stays generally
unaltered till the year 2050. As the value of the migratory storage rises till the year 2050
provided that the electricity supply during the summers will become more plentiful than the
current time period and in during the month of winter the electricity becomes scarce and the
process is limited by the limit of the storage which remains unaltered in the circumstances and
hence cannot raise the seasonal storing.
4.6.2 Overview on the Delay Scenario
The research recently turns to the standard outcomes of the various circumstances of the
delay. An overview of the average annual rents and costs has been undertaken. Provided that an
assumption is made that a utmost postponement of 10 years and the “TYNDP” does not give out
any expansions for the coming era from the year 2035 to the future, all the Swiss expansions will
be incorporated from the year 2040 and later on in all the European expansions.

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Subsequently, for the later on time frame the outcome of the postponement conditions is
not different from the base case replication.
By concentrating over the whole effect on the wellbeing of the system and creation of
expenses the various hindrance conditions creates outcomes as anticipated with an afterwards
comprehension of the “network extensions” more expensive power projects requires to be
exploited to deliver the demand that is domestic in the areas that are congested creating the
overall effect that is rather than simple with less than 50 Million EUR every year of the surplus
expenses. However, if the European extensions are postponed in the neighbouring nations along
with the “Swiss cross-border lines” the general expenses increases by an extent of 700 million
EUR every year. The overall benefits have an impact on the similar degrees.
Even though the outcome of the model requires to be handled with precision, the
simulation addresses the significance of “cross-border extensions” of the network for the
“European market” and explains a potentially increased expense in scenarios of long term delays
(Verhoog and Finger 2016). However, in association to the overall cost of the electricity system
the impacts are very less.
By investigating the situation of the congestion within Switzerland, it is seen that in
general a rise in the overall rent congestion explains that with postponed network extensions the
differences in the price are even more articulate. This outcome as anticipated provided that the
primary intension of the extensions is to lower the problems related to security and thereby
lowers the congestions of the network (von Wirth, Gislason and Seidl 2017). The variations
among the Full Delay and the Delay in Europe scenarios even addresses that “cross border lines”
are significant forces for the market of electricity in Switzerland, a huge effect on the clogging
scenario is accomplished by the intrinsic expansions.

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Figure 5: Price Impact of the Delay Scenarios
By looking at the other outcomes, the observation becomes less clear. In all scenarios it is
seen that both positive and negative effects on the consumer costs and rents. These impacts are
compelled by the resulting price transformations because of the postponed network extensions.
In the year 2020 the delays in the extensions does not dismiss the the congestion among France

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and Italy and Italy and Austria. This creates fall in prices in the exporting nations and relatively
increased Italian prices.
4.7 Detailed Impacts of the Network Extension Delays
Provided with the huge extent of variations in the scenario outcomes, it is essential to
address the general patterns and the visions in the sections that have been given below.
4.7.1 National Price Impacts and the Winner and the Loser of the Problem
It is indicated in the standardised outcome part, the effect of the various stoppage
scenarios on the manufacturer costs related to rents and consumer is variant by relying on the
fundamental changes in the price. It is a general outcome if the transfer abilities among the areas
with various price degrees are transformed. If the existent congestion is minimised this generally
generates convergence of price among the interlinked regions and hence, higher price in the
exporting regions and falling level of prices in the regions of imports. This impact is seen in the
various stoppage conditions. In the year 2020, delay in Switzerland a slight decrease in the level
of prices in the exporting nations and a slight rise in the import reliant nations in accordance to
the transformations in the level of net import. In the year 2030, there has been an observation
that a transformed market scenario for the exporting and importing nations would face higher
prices due to the transformed export and import trends, while the countries like France and
Switzerland face decreased level of prices due to the delay in the extensions.
In scenarios of an entire extension postponement the absent “cross-border lines” creates
key transformations in the balances of the energy of the structured nations (Zou et al. 2017). As a
whole, France has faced decreased prices and inferior level of exports that leads to decreased
manufacturer France’s rent but in the same manner lower consumer costs. In the year 2020, it is
seen that Italy that goes through higher prices and is therefore compelled to be dependent on

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expensive nationalized production. In the year 2030, such function is preserved for Germany. It
even addresses the variation in the total costs and the rent in the two scenarios.
Furthermore, the national transformations for the producers and the consumers and even
the transformations in the export and the import values will create transformations in the
nationwide rents. Due to the fact that the owners of the network or the process operators will
gather the respective rents on the “cross border flows” accordingly a transformation in the
variation in the prices among the nations and will transform the revenue provided that the rise in
price increase between France and the nations where imports are undertaken, the real gathered
“cross border rent” in France rises in the most of the conditions in spite of the fall in the volume
of export while the gathered rent has a fall in the Swiss border lines. Provided that the system
will continue to be a controlled section of the market of electricity and the effect of the
transformations in the income will be dependent on the controlled design.

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Table 1: Changes in Comparison to Base on the Country Level
4.8 Impact of Swiss Electricity market and the Energy Transition
The effects of the postponed extensions of the network on the “Swiss electricity market”
are even more diffident with respect to the transformations in the prices and the dispatch. This is
generally an impact of the considered time period of the delays. It is seen that the planned
extensions are accounted for in the coming 10 years and even account for a utmost postponement
of the 10 years and the system from the year 2035 is similar in every scenario. The huge changes
in the Switzerland market takes place in the year 2035 which means that there is a shift from
nuclear towards the organizations that are RES based. In the same manner, these delays does not

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have an impact on this development and the most of the impacts take place due to the
transformations in the interactions in the “European market”.
In the majority of the cases the extent of prices is relatively low due to the postponement
as the alternative for exports remain restricted and maintains the domestic price differentiation
more articulate in Switzerland on the decreased end of the price. In scenarios, of inner Swiss
postponements, the water output is generally low because of the mitigation in the pumping
operations. In scenarios, of a stoppage in the European process the opposite impact takes place
and in the entire impediment scenarios a mixture of both impacts can be seen.
The key effect of the hindrances is not astonishingly on the “European” flow of power
trends and hence flows in and out of “Switzerland”. The effect on the “Swiss export” and import
stream on the every border is even declared and the whole effect on the actual balance of
Switzerland is less in most of the scenarios. In the year 2020, Switzerland still performs as a
evolution hub for the flow of electricity to Italy. A stoppage in the extension leads to a lower
amount of imports from France. Switzerland therefore becomes the hub for transit for the
“French electricity” for the “Germany market”. Furthermore, the nuclear part out in Switzerland
mitigates the conjugal manufacturing that is available while the new RES abilities are still less.
This generates an increased dependency of the imports. By making a summary, it is seen that the
impact of “Swiss energy transition” with concentration on the “RES incorporation” from the year
2035 onwards remains unpretentious by a delay of the presently constructed extensions till the
time it remains in the assessed boundaries of tem years.

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Chapter 5: Conclusion, Recommendation and Future Work
5.1 Conclusion
This paper has looked to address the impact of wind and solar energy for the Energy
Strategy 2050 in Switzerland. The introduction section has looked to explain what electricity is
and how human beings generate electricity with the help of renewable resources. The flow of
electricity and the costs associated with it is even assessed in order to have an understanding of
the generation of electricity during several of months of the year. The background of the paper
explains the electricity generation in Switzerland and the neighbouring nations with whom
export and import of the flow of electricity takes place so that changes in the demands and the
prices can be understood in an effective manner. The supply of electricity and the variations that
would be taking place from the current time period to the year 2050 can be understood.
The statement of the problem looks to explain the issues that are existent in the energy
transition in Switzerland and the neighbouring nations so that research on this topic can take
place. The research aims and objectives along with the research question has the idea of
highlighting the issues along with which assessment can take place with the help of which the
impact of wind and solar energy can be understood in accordance to the Energy Strategy 2050 in
Switzerland.
The review of the literature looks to assess what Energy Strategy of Switzerland is along
with the neighbouring nations with the help of which electricity market of Switzerland can be
understood. An idea about the wind and solar energy can be understood and the function of the
“Swiss transmission process” is known. The pillars of the strategy and the changes in the
consumption of the energy can be known. Knowledge about the Swiss Power market and the
various aspects associated with it can be known in an effective manner. The structure of the

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Switzerland market and the measures associated to the energy effectiveness is explained. The
financial aspect and the sources of investment for the electricity generation in the country and the
neighbouring nations can be known. There are several other aspects that have been explained as
well and thereby analysis can be understood about the impact of solar and wind energy in
accordance to the Energy Strategy 2050 can be understood in a proper manner.
The data associated with this research has been collected from secondary sources with the
assistance of Switzerland electricity websites and other sources as well and thereby effective
level of analysis can be undertaken with the help of which effective results can be attained.
This paper has looked to assess the function of the “Swiss electricity transmission”
process for the coming time development of the “Central European” electricity market and
thereby assess the effect of the postponements of the extension on this growth. By making use of
a structured framework of the “Swiss electricity market” and their neighbouring markets;
Swissmod initially it is essential to simulate the anticipated developments in the market to the
year 2050 by relying on the “Swiss Energy Strategy 2050” and the European Union course map.
The next phase refers to the deriving the various scenarios with delays in the anticipated
extension of the network for a span of ten years.
In a summary, the basic case simulations reveal a slow rise in the discharge allowance
prices and that reason that the fossil fuel projects are even marginal price making units in several
hours, a sustained brawny scenario of export of France and decline in the import dependence of
Italy and a key transfer in the flow of power trend due to the rise in the renewable creation with a
specific strong connection to the distinctive daily solar trend of injection. The enhancements can
create transformations in the export-import flows among “Switzerland” and the aggregate
balanced net scenario with a role of exports during the months of summer and importing role

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during the persistence of winter. The outcomes explains that the cons\trolled projects of the
extensions of ENTSO-E’s ten year development plan mitigates the congestions among the
process and assists in exchanging the electricity from the deviating sources of the renewable
energy all over Central Europe. Therefore the results are in accordance with the assessments in
accordance to the anticipated developments of the networks.
The various scenarios of the delays naturally generates to a shift in the export and import
balances with lower level of convergence of prices and fewer level of flows in the cross-border.
The flows within Switzerland being a passage nation are impacted precisely and their net
balances do not alter. As the expansions are looked upon at mitigating the current congestions
and the delays lead to increased costs of generation in Europe for a value of 700 million Euro per
year.
In case of the “Swiss electricity market” both of the common enhancements and the
effect of the postponements of the extension are uncritical comparatively in accordance to the
“Energy Strategy 2050”. The key transformation from the aspect of nuclear to the renewable
creation is estimated to take place after the year 2035 and hence is not affected by a impediment
in the next era. In the same manner, the core scenario and the huge amount of import and
abilities of export permits Switzerland to recompense any domestic shortage with a rise in the
level of imports. The controlled extensions are required to relieve the current congestions and the
bottlenecks within the process and a postponement that will lead to surplus expenses by keeping
in mind the process stable. In the same manner, the transformations in the flow of the cross-
border will lead in the transformation of the revenues for the system operator of Switzerland. On
the other hand, the delay will create a fall in the level of earnings and the developments that are
long term in nature will lead to a rise in the level of revenues.

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5.2 Addressing the aims and objectives
The research paper has been able to address the aims and objectives that have been
framed.
Objective 1
The paper has explained the challenges that have been faced by the Government of
Switzerland with the security of the energy and the extent of dependency of fossil fuel. The
paper has explained that energy flow security has been maintained so that the import and the
export can lead to effective level of flow of energy.
Objective 2
The methods that have been undertaken in order to understand the energy flow
transmission and the economic development of the Central European nations is understood in an
effective way. There are several methods that have been applied and with the help of these
methods the export and import processes can be maintained. The flow of electricity during hours
of the day and the flow of electricity during the summer and winter season is even provided with
the help of these processes.
Objective 3
This objective has looked to ascertain the price of electricity along with the demand and
supply with the help of which flow of electricity within Switzerland and the other neighbouring
nations have been known. The effectiveness of the Swiss Energy Strategy 2050 in accordance to
this process has been understood.

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5.3 Recommendation
The recommendation section looks to discover various suggestions that is given in order
to enhance the “Swiss Energy Strategy 2050”. The government along with the electrical sectors
looks to construct various plans and policies with the help of which the energy sector can
develop and accordingly the flow of electricity can be enhanced. The changes in the export and
the import values have to be monitored from time to time with the help of which the values can
be recorded and accordingly developments can be made. The frequent assessment of the energy
flow process can be helpful in understanding the impact of the solar and wind energy and
accordingly can improve the Energy Strategy 2050.
5.4 Further Research Work
This topic has a huge scope of future researches as well as it is seen that there are several
changes that can take place with the advent of time and as due to various factors there can be
changes in the flow of electricity and the demand and supply of the electricity flow and in the
electricity market in Switzerland. This are the factors because of which further researches can
take place so that a comparison can be made in accordance to the current research and the future
one in order to have an understanding about the changes that have taken place with the advent of
time. This can improve the Swiss Energy Strategy 2050.

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Appendix
Detailed Cross-Border Flows in GWh per year

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Extension Projects Added in the Model