Swisspor Arena aus Vogelperspektive

Energy and Climate Regional Energy Transition and Value Creation, Business Opportunities, Market Modelling, Regulation

The energy transition is on everyone's lips. But which technologies, which behaviours, which regulations should be prioritised where? How will energy producers, consumers, prices and revenues react to new developments - regionally, nationally, globally? What are the opportunities for individual technologies? What needs to be considered by local authorities? Answering these and other questions is part of our expertise.

Energy markets are becoming more and more integrated. The electrification of transport and heating is progressing rapidly, while the use of new energy sources such as hydrogen offers new opportunities in the electricity sector. In terms of spatial impacts, there is an interesting tension between two opposing trends: on the one hand, the large-scale balancing of renewable energy production and demand requires increasing international coordination. On the other hand, there is a trend towards regional or local energy communities with privileged energy exchanges and possibly a high degree of energy self-sufficiency.

Our research and advisory services support policymakers and regulators, regions, investors and operators of energy infrastructure. Our focus is on supporting communities in their energy transition, developing and evaluating regulatory policies for a sustainable energy system, and assessing market impacts and optimising investments from a private sector perspective. We draw on sound theoretical foundations, empirical methods and state-of-the-art modelling. Another focus is on the development of new financing instruments to promote the energy renovation of the Swiss building stock. We carry out this research in collaboration with private and public sector partners within the framework of the Innosuisse flagship project "Renowave". On the other hand, we are also interested in the social perspective, particularly at the level of neighborhoods and local development areas. How can people live sustainably and efficiently? Or how can sharing and working from home contribute to energy savings, for example?

Sustainability and climate change are often at the heart of our clients' concerns. We look at these issues from different angles, drawing on our interdisciplinary background.

In addition to ecological factors, the other aspects of sustainability - economic efficiency and social compatibility - are often of central importance. We support this by calculating general and regional value-added effects in combination with spatially integrated socio-economic analyses.

Our experience in housing and urban development also helps us with complex issues such as analysing the barriers and opportunities of energy-efficient renovation.

Energy system modelling allows us to dynamically simulate complex systems at a regional or local level. On the other hand, we use highly complex inter-regional integrated models to analyse the optimal development of electricity systems in one or more countries or regions.

Services and research areas

Energy efficient building refurbishment and site development

Strategies for financially and socially responsible renovation

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Buildings are as diverse as their owners and users. Accordingly, there are no one-size-fits-all solutions for the short- or medium-term renovation of a large proportion of Switzerland's building stock. We look at the problem in detail and seek solutions where they appear to be socially, environmentally and financially worthwhile.

Project examples

Contact: Marcus Drometer

Climate Governance & Regulation

Effective solutions to climate change

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Tackling climate change requires the coordination of many governmental and non-governmental actors. The long timeframe over which climate change is taking place requires the ability to maintain a credible commitment to an ambitious climate policy over the long term. We advise governments, public authorities and international bodies on the development and implementation of effective climate policy solutions.

Project examples:

  • Peer Review of the Climate Responsive Public Financial Management Framework (PEFA Climate). On behalf of SECO, HSLU conducted a peer review of the PEFA Climate Assessment Report on Indonesia as a contribution to the policy dialogue between SECO, the Indonesian government and other development partners such as the World Bank.
  • Financial risk mitigation for hydropower, see below under regional and local energy system modelling.
  • Evaluation of the fuel compensation obligation for the FOEN

Contact: Marcus Drometer

Modelling of regional and local energy systems

Optimised operation and expansion of regional energy systems

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The energy transition poses a variety of challenges for local and regional authorities and regional energy system managers. Balancing the numerous technical, economic and regulatory options, considering environmental and (regional) economic objectives that often do not exactly coincide, is one of our main focuses. We use high-resolution simulation models to show how different infrastructure elements can be used and expanded in an optimal way. We also analyse the (regional) economic impacts of different regulatory options and the relationships between regulation, regional economic performance and environmental objectives.

Project examples:

  • Financial risk mitigation for hydropower
    We support suissenergy in mitigating the financial risks for a developing country resulting from erratic weather (drought) and climate change. Financial risks arise from the fact that during drought years (in the worst case, several years in a row), domestic energy production in hydropower plants is severely impaired and fuels for thermal production have to be imported - at high cost. Technical options (diversification of electricity production) and various financial options (reserves, various types of insurance schemes) are parameterised in such a way that risks can be mitigated at low cost. 

Contact us: Florian Habermacher, Katia Delbiaggio

Market simulations for major electricity markets

State-of-the-art analysis of integrated electricity markets in complex simulation models

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Together with our partners, we develop in-depth analyses of the medium- and long-term development of the electricity markets in Switzerland and Europe. Regional demand and all major power plants in the countries under consideration are simulated at hourly resolution, including power plant start-up ramping, dynamic management of storage facilities and, increasingly in the future, new technologies such as electrified transport, heat pumps, or H2 – or large-scale seasonal heat storage. This allows not only the optimised expansion, prices and profits for individual market participants and portfolios to be determined, but also the impact of regulatory measures on security of supply, climate, fuel consumption or net welfare.
Models are only as good as the assumptions on which they are based. Our modelling is designed to be transparent about what data is used and what objectives are being optimised.

Contact us: Florian Habermacher

The Social Perspective of Energy Transition

Energy in everyday life and in the neighbourhood

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In addition to companies, politicians and the public sector, the implementation of the energy transition also requires the inhabitants of a community as civil society. In addition to economic value creation and technical expertise, the energy transition requires above all civic engagement. This is why we focus on the societal perspective of the energy transition and ask how the change affects people's behaviour and attitudes, or what impact it has on the social acceptance of the transformation. The project examples look at how energy is used in everyday life, such as commuting, how energy can be saved by working from home or by sharing objects, or how housing and neighbourhoods can be made more sustainable overall.

Examples of projects

Contact us: Jana Z'Rotz, Chantal Magnin

Other activities

Our specialists in the IBR and the rest of the Department of Economic Affairs are active in other key areas of energy transition.

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Examples of recent projects and activities:
1. Federal Electricity Commission (ElCom): Member Katia Delbiaggio (CC Regional Economy)
2. Projects with Clean Energy Exchange (CEEX):

Solutions for the challenges of energy transition and digitalisation

(Christoph Dollfuss, IKM)

Team