Switzerland's natural resources

Official Name: Swiss Confederation.

Summary: Throughout history, geopolitical events have significantly impacted Swiss energy development. Efforts are being made toward building more renewable energy, and there are ongoing discussions about building new nuclear power plants.

Switzerland started its energy development based on hydropower and wood, the only two resources the country had in abundance. At the beginning of the twentieth century, wood was fairly industrialized and supplied up to a sixth of the country’s energy needs. At the same time, energy companies discovered the tremendous potential for hydropower in the Swiss Alps and started developing some retention dams. Coal supplied the nation’s remaining energy demand. From this stage, these forms of energy evolved on very distinct trajectories. The use of wood was conditional on geopolitical events that shook the rest of Europe and on the exploitation of more profitable energy sources. Wood as a form of energy increased significantly during World Wars I and II, when coal prices increased and coal supply decreased. Wood then accounted for up to a third of all energy needs. After World War II, the use of wood for energy purposes declined abruptly, leaving the country vulnerable to oil shocks. Then wood was seen as a renewable energy source and the nation supported a small and stable increase in its use. Nevertheless, wood accounted for about 5 percent of all energy production in 2023.

Hydroelectric power has experienced significant development, especially in the twenty-first century, when new dams have been built. The famous Grande-Dixence, which is the highest dam of its kind at 935 feet (285 meters), is one such example. As of 2022, hydroelectricity represented about 52 percent of the country’s domestic electricity production.

Using waste for energy has been adopted as a way of cogenerating heat and power. Other renewables—wind, biogas, biofuel, solar, and geothermal power—have also been developed. The use of domestic natural gas is cost-prohibitive, rendering it noncompetitive, and all attempts to exploit it have been abandoned. Besides wood and hydropower, Switzerland historically relied on imports.

The major imported resource at the beginning of the twentieth century was coal. This source of energy, used for heat and power generation, accounted for up to 80 percent of all energy needs before World War I. It was only after World War II that the country slowly phased out coal. By 2022, coal accounted for 0.4 percent of all energy uses in the country, and it was almost exclusively being used in cement factories. Coal reserves were not being refurnished in Switzerland, and most factories replaced coal, or considered replacing it, with various nonrecyclable wastes. Petroleum products became increasingly strategic between the two world wars, with a tenth of national energy needs being filled by this source of energy. This share increased up to 80 percent before the two oil shocks of the 1970s. The reliance on petroleum later declined. However, in 2022, it still accounted for about 34 percent of the country’s total energy consumption and therefore remained a very important source of energy, especially in the transportation sector.

Nuclear and Hydropower

From an electrical perspective, Switzerland relies mostly on clean energies, especially hydropower and nuclear power. More than half of the country’s electricity in 2022 was generated via its numerous hydroelectric power plants. About 40 percent (2022) of the electricity comes from the use of nuclear power plants built between 1969 and 1984. A minor proportion of energy is generated via the use of products derived from renewable energies and from fossil fuels, including waste. The government decided in 2011 that it would not replace the four nuclear reactors, and nuclear power would be phased out as a result.

The local environment (including a rough topography and a high population density, generally weak wind conditions, and low average solar radiation) renders the spread of renewable energy expensive and therefore difficult. However, in 2022, Switzerland relied on hydropower for 11.5 percent of its energy needs. Biomass resources are better, although they are limited because of the country’s size. Biofuels and waste produced 12.6 percent of the country's energy in 2022.

The Swiss Confederation has increased its emphasis on developing renewable energy sources, and different policy instruments have been implemented to offset the barriers to renewable energy development. As a result, several projects have been or are on their way to being built, including wind farms, solar fields, and even geothermal installations. By 2023, about forty large wind energy facilities were in operation in Switzerland.

The total energy consumption rose sharply, by a factor of 4.4, between 1950 and 1973. Energy consumption rose at a slower rate, remained relatively flat from 2000 to 2013, and then began a gradual decline. Energy consumption in 2022 was lower than in 1985. Demography can explain part of the rise, and increased consumption per capita accounts for the rest. Grid connections to neighboring countries ensure stable access to electricity. From year to year, Switzerland can be either a net importer or a net exporter of electricity.

Most of the energy in Switzerland is used by the transportation sector, which accounted for about a third of the total energy consumption in 2021. Housing accounts for almost another 30 percent, most of it going toward heating in this region where winters can be long and cold. The remainder is divided among the industrial and service sectors.

Since the 1970s, the Swiss Federal Office of Energy has ensured that energy development respects principles of social responsibility, respect of the environment, economic viability, and energy security. The fight against climate change has been addressed in the country’s energy policy; Switzerland ratified the Kyoto Protocol and, in 2017, the Paris Agreement. The country committed to halving greenhouse gas emissions from 1990 levels by 2030 and to reach net zero greenhouse gas emissions by 2050 with ratification of the latter. By 2021, it had reduced energy-related CO₂ emissions 17 percent since 2000.

Even though the country is not part of the European Union (EU), it has ratified numerous bilateral treaties and aligns its energy targets to those required of EU member states. The most notable program that Switzerland established in this regard was the SwissEnergy program, which promoted energy conservation through efficiency, reductions in greenhouse gas emissions, and significant increases in the use of renewable energies.

Bibliography

International Energy Agency. Energy Policies of IEA Countries: Switzerland 2007 Review. Paris: Organisation for Economic Co-operation and Development, 2007.

“Nuclear Power in Switzerland.” World Nuclear Association, 12 Apr. 2024, www.world-nuclear.org/information-library/country-profiles/countries-o-s/switzerland.aspx. Accessed 12 Aug. 2024.

Swiss Energy Council. “Swiss Statistics of Energy Since 1910.” www.energiestatistik.ch/.

Swiss Federal Office of Energy. “Energy Statistics.” www.bfe.admin.ch/themen/00526/00541/00542/index.html?lang=en.

SwissWorld.org. “Energy Policy.” www.swissworld.org/en/economy/energy/energy‗policy.

"Switzerland." International Energy Agency, 2022, www.iea.org/countries/switzerland. Accessed 12 Aug. 2024.

"Switzerland." US Energy Information Administration, 2023, www.eia.gov/international/overview/country/CHE. Accessed 12 Aug. 2024.