Sustainable development has been a trendy term during the past three decades. Nonetheless, while several countries have tried to make this term a real, tangible asset; few have shown signs of success to lead the world’s initiative toward sustainability.
Summer is coming and today, the voters in Switzerland share their democratic say about Switzerland’s newest attempt to lead in global Sustainable Development: “Energy Strategy 2050” referendum. Once again, the Swiss government is moving fast toward the future, embracing renewable energy even more than before, and than anyone else.
The “Energy Strategy 2050” Law that Is Causing Debate
While most voters approve a subsidy for renewable energy, debate is still ongoing on the “Energy Strategy 2050” initiative.
This law would increase x4 the solar and wind power output by the year 2035; an accomplishment backed up by investing in renewable energies. The law proposes its funding to invest in solar, wind and hydro to come from:
- Electricity users (480 Million Francs)
- Critics said a family of four would pay 3,200 Swiss francs ($3,290) in extra annual costs, but most people seem to be fine with this increase.
- Existing fossil fuels tax (450 Million Francs)
- Taxing fossil fuel use across the country maps out a 43% reduction of energy use in buildings across 35 years. (2000 – 2035)
- The Electrical and Mechanical Engineering sector opposes the law, mentioning uncertainty about its implementation.
- The unresolved problem of long-term security of electricity supplies
- Whether it is from fossil fuels or renewable sources, there is a challenge to confirm the long-term security of electricity from these sources. The referendum does not seem to touch base on this end with enough backup points to ease the Electrical and Mechanical Engineering sector.
- Risk of cost increase and regulatory burden for companies
- Governments usually fail to accurately calculate the complications and risks associated with wide policy changes. Swiss engineers already advise about these burdens and raise questions that the government should take into account for further revisions of the referendum before/if it goes live.
- However, I believe that the engineering solutions that have changed the world, usually happen when the countries overshoot their goals during times of great growth, war, or industrial strain (both national and international). I would not doubt the Engineering sectors to overcome any challenge effectively; especially during this globalized century.
- The unresolved problem of long-term security of electricity supplies
Most voters approve a ban on nuclear plants.
- Europe is trying to reduce nuclear power dependency since the 2011 Fukushima disaster. Switzerland is moving along with this trend.
- “The results show the population wants a new energy policy and does not want any new nuclear plants,” Energy Minister Doris Leuthard mentions during the articled referenced below. I still am dubious about this decision, but understand that a democratic government must follow most of its people’s opinions.
- Currently, 5 nuclear plants operate in Switzerland. The first one will be closed in 2019.
Most voters approve a bailout of struggling utilities.
- The law includes a 120 Million Francs subsidy on utilities that struggle with higher than market costs.
How is this relevant to The Rest of Us?
This is relevant because Switzerland is one of the world leaders of renewable energy in the world. The “Energy Strategy 2050” law would only reinforce their leadership and push the OECD countries to improve their renewable energy usage.
- However, while Switzerland leads the G7 countries and the OECD countries at 22.35% of Renewable Energy from Primary Energy Supply…
- x2.3 More than OECD countries (9.64% Renewable Energy)
- x3.3 More than USA (6.86% Renewable Energy)
- … in the amount of Energy (Tonnes of Oil Equivalent), it is still a low performer at 5.5 kTOE; altering slightly the world average.
- Switzerland represents about 1% of the OECD contribution (508 kTOE)
- Switzerland represents close to 4% of the USA contribution (149.6 kTOE)
This is also relevant for the United States because the international pressure to increase the use of renewals in the energy portfolio will strain international relationships and treaties. I wonder how Trump will react to these responsible commitments from developed countries to improve our global quality of living.
It is no secret that every government-driven policy, audit or compliance has been born due to pre-existing conditions. If it’s broken and causing pain, the government will create policies to address its causes, but a “it ain’t broken, don’t fix it” mentality creates an inefficient reactive system, rather than a preventive one.
As a consumer, I would take a closer look at implementing renewable energy sources at home, being it Photo-voltaic panels for electricity generation, solar heat generators, or artificial intelligent homes to reduce our taxes and our risk of future fees from the government as it complies with the global trends in energy generation and consumption.
References:
http://www.reuters.com/article/us-swiss-energy-idUSKBN18H0HM
https://data.oecd.org/energy/renewable-energy.htm#indicator-chart
Everything written here is a personal reflection and is by no means educational, financial or professional advice in any way.
Please feel free to cite and refer reliable sources in the comment section down below.