Swiss electricity reserves cost consumers 4 billion francs

Switzerland is facing a hefty price tag for its electricity reserve measures, with consumers on the hook for 4 billion Swiss francs over the next two decades. The government, led by Energy Minister Albert Rösti, is pushing for the construction of four new fossil-fuel reserve power plants, estimated to cost 2.3 billion francs. This initiative faces growing skepticism in parliament, especially after the costly failure of a previous emergency plant in Birr. This plant, built under emergency powers in 2022, cost nearly half a billion francs but never entered operation and is now being dismantled.

While the government argues these reserve measures are necessary to prevent electricity shortages, which are considered one of the country's most likely major risks with potential costs reaching 84 billion francs, the expense is drawing criticism. The business association Economiesuisse, while supporting the reserve power plant construction, has detailed the significant burden on consumers. Alexander Keberle of Economiesuisse stated that the measures will cost 4 billion francs over the next twenty years, attributing the expense to Switzerland's failure to expand its winter electricity production.

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This is a lot of money and it really hurts. We are now paying the price for inaction.

"This is a lot of money and it really hurts," Keberle said, adding that "we are now paying the price for inaction." He emphasized that given the potential catastrophic costs of a power shortage, the billions invested in reserve measures are likely unavoidable. The situation highlights a tension between the perceived necessity of energy security and the substantial financial burden placed on consumers and the economy.

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Given these amounts, the billions we have to invest in reserve measures are probably necessary, unfortunately.