Revenue opportunities Swiss hydropower

What are the revenue opportunities for different hydropower plants in Switzerland? What role do the various sales options such as spot, futures, ancillary services, capacity and proof-of-origin markets play?

Reservoir with lots of blue water in the mountain area

Client

Swiss Federal Office of Energy (SFOE)

Project period

2023

Related expertise

Regulation, Energy, Environmental Economics, Data Science

Team

Urs Trinkner, Nicolas Eschenbaum, Nicolas Greber, Alexander Fuchs, Turhan Demiray

Contact

Urs Trinkner

Project description

Swiss Economics is supporting the SFOE together with the FEN of ETH Zurich in the implementation of the sliding market premium. Specifically, the SFOE must have an exact idea of which types of hydropower plants have how much revenue potential over the course of the year. To this end, we first quantify the potential in spot, forward, capacity, ancillary services and proof-of-origin markets as precisely as possible in order to derive heuristics that are as easy to operationalise as possible in a second step.

Methods

Literature analysis
Calculation of revenue opportunities within one year on the various markets
Derivation of heuristics
Tool creation
Stakeholder workshops

Publications

Report (in German)

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