What the Ukraine war means for Switzerland's energy policy

(MENAFN- Swissinfo) Around half of the natural gas used in Switzerland comes from Russia. Swiss distributors mainly source it from within the EU, such as from Germany and France. Keystone / Maxim Shipenkov

The war in Ukraine and consequent threat of energy insecurity is forcing many countries to reconsider their existing policies. The ripple effect has also reached Switzerland, which is already reassessing its gas supply for the coming winter. 

As the largest exporter of oil and gas combined worldwide, Russia represents a critical piece of the global energy puzzle. The invasion of Ukraine by Russia and the sanctions which followed have already impacted where oil and gas will come from in the future. The United States announced it is banning oil imports from Russia. Meanwhile, the European Commission has presented a plan to reduce the bloc's reliance on Russian gas by two-thirds this year. Switzerland too is evaluating the security of its future energy supply and production. 

“Russia is a significant supplier of natural gas and uranium to Switzerland and the rest of Europe. So, Russia's invasion of Ukraine and how the rest of the world, including Switzerland, reacted with sanctions against Russia have destabilised the energy supply,” says Aya Kachi, professor of energy policy at the University of Basel. 

Gas makes up roughly 15% of Switzerland's final energy consumption and is mostly used for heating and cooking. Around half of this comes from Russia, although there are no direct contractual relations with Russian companies. Swiss distributors mainly source their gas from within the European Union, such as from Germany and France. 

To prepare for the 2022-2023 winter season, the Swiss government has stepped up efforts to procure gas, storage capacity as well as imports of liquified natural gas (LNG), according to an announcementExternal link earlier this month. The Swiss government has also waived anti-trust laws so that gas companies can strike agreements together regarding storage and supply.

While the government assures gas supply is secure this winter, it nonetheless warns shortages remain a“residual risk”. At the moment, Switzerland does not have a large capacity to store natural gas nor does it have its own gas reserve. This means that any major disruption - such as if Russia cuts off gas supplies to Europe - would require consumers to reduce their consumption.

More

With unilateralism on the rise in global politics, Switzerland is finding it more difficult to interpret its neutrality.

“Strong and concerted efforts will need to be made in order to ensure that the energy needed for residential as well as industrial demand will be available,” says Beat Ruff, deputy head of infrastructure, energy and environment at the Swiss business federation economiesuisse. 

Gas – which accounts for a relatively small source of energy in Switzerland – is only one part of the story, however. Switzerland is currently embarking on an ambitious energy transition plan called Energy Strategy 2050, which was sparked by the Fukushima reactor disaster in Japan in 2011. The main objectives of this strategy are to maintain a secure energy supply, phase out nuclear power and reduce greenhouse gas emissions. 

The ongoing war in Ukraine is accelerating these discussions and forcing Switzerland to confront its longer-term energy strategy.“The need to increase the security of supply has become even more urgent,” says Patrick Dümmler, a senior fellow at the think tank Avenir Suisse.“Given the need to substitute fossil sources in mobility and heating, we need to build new capacities for power generation.” 

This urgency was highlighted at a lengthy debate last week in the Swiss parliament about the government's policy and possible consequences of the war in Ukraine.

“We have to expand renewables with all our might, more speed is required. We also have to cut back on wasting energy,” declared Energy Minister Simonetta Sommaruga.

More

MENAFN20032022000210011054ID1103877646