Energy GlobeEnergyGlobeEnergyGlobe

Der Newsletter für den Energiemarkt

Ausgabe 01|2023

"It's important that we continue to save electricity."

The Organisation for Power Supply in Extraordinary Situations (OSTRAL) takes action in case Switzerland faces an electricity shortage. It is headed by the Managing Director of Primeo Netz AG, Dr Lukas Küng. In this interview, he talks about the current risk and the precautions taken by his organisation in the event of an emergency.

What is the current risk of a power shortage?
Right now, we don't have a problem. The reservoirs and gas storage tanks are well filled, and more and more nuclear power plants in France are coming back onto the grid. Even if something were to happen, we are well prepared and have enough time to react. Things could be more critical in February and March, when the reservoirs might no longer be so full.

What exactly does this mean, how critical will it become?
There's no reason to panic, we're very well prepared. The important thing is that we continue to save electricity. The measures already underway are a big help in this regard. It would be problematic if we were to start consuming electricity like crazy now.

What would happen if there were to be a shortage?
The four-stage emergency plan that OSTRAL prepared and the Federal Government recently presented to the public would take effect. Firstly, there will be calls to save electricity voluntarily. This would be followed by a second step involving consumption restrictions, thirdly we would start rationing the power for large consumers, and a final fourth measure would mean disconnecting the grid temporarily. However, we really don't want to reach that point.

The Federal Government has already launched the "nicht-verschwenden.ch" ("Don't Waste") energy-saving initiative. Is this the first stage of the OSTRAL plan?
No. The appeal to save under the emergency plan would be felt even more clearly. It would be much more urgent. For example, we would receive phone messages prompting us to save electricity.

But people already have a strong awareness, and many are saving electricity, as are companies like Primeo Energie. Is this already having an effect?
Energy consumption depends on many factors such as temperature, weather, the time when it gets dark, and whether the economy is thriving. As a result, we can't always know precisely what things are affecting energy consumption. In one grid area, energy consumption fell by more than 5% last September, while in another it remained the same as in the previous year. In another grid area, it was exactly the opposite. It's hard to tell.

People are complaining on social media that the government's emergency plan – which actually is OSTRAL's plan – is weighted incorrectly, i.e. that individuals have to do with less while businesses can consume more electricity for longer.
That's not true, and we were very deliberate in developing a plan that's as fair as possible. The first-stage savings are aimed at companies as well as private households. If this appeal is insufficient, the savings become obligatory for industry, not for the private sector. In other words, we're not saving on the backs of private households, as is sometimes claimed. Incidentally, business associations complain that exactly the opposite is the case.

How can we avoid facing a shortage in future? Are there any relevant considerations in this regard?
OSTRAL is an emergency organisation. Above all, we are needed because we don't have enough power stations in Switzerland. That's why I think it's so important to increase capacities in Switzerland, especially in the photovoltaic and wind sectors. Anyone who can should install solar panels on their premises, especially companies. This enables us to achieve a significantly higher degree of reliability of supply.

Viktor Sammain, PR Editor, Primeo Energie

home2050: Making your home sustainable is easy

Primeo Energie has joined forces with EBL and BLKB to launch the home2050.ch platform. Homeowners can conveniently identify the potential for photovoltaic systems, heating substitutes, and electric charging stations online.

Homeowners who wish to install a photovoltaic system, a heat pump or an electric charging station can use the home2050.ch online tool from Primeo Energie, EBL and BLKB. In just a few steps, the potential and benefits of photovoltaics, heat pumps and e-charging stations can be calculated and detailed advice as well as information on financing solutions can be obtained.

"Our greatest strength is our consulting expertise in all three areas," says Stephan Krähenbühl, Head of Prosumer and Energy Services at Primeo Energie. "We thus help customers find the right installer, the right offer, and thus the best solution for their needs among the jungle of suppliers," says Krähenbühl. home2050.ch creates transparency by letting you compare various offers, and it supports all aspects of the process, from the initial idea all the way to financing and commissioning.

Using efficient and environmentally-friendly energy sources is decisive in the energy revolution the Federal Council is aiming for by 2050. Furthermore, expanding the climate-neutral, sustainable energy supply already at the individual level is an important factor as well. With home2050.ch, home-owners not only have the opportunity to save money but also can participate in the Federal Government's climate strategy and play an active role in the energy revolution.

Viktor Sammain, PR Editor, Primeo Energie

Birsstadt heating network: Towards a fossil-free future

It's a gigantic project: 25 existing heating systems and networks are being merged and switched to renewable energies. This will create the new Birsstadt heating network, a key player in the uptownBasel innovation hub.

By the summer of 2022, the time had come: The authorities gave the go-ahead for the construction of a new, gigantic heating plant on the grounds of the uptownBasel innovation campus. The Birsstadt heating network was launched. The new central heating system does a tremendous job. Firstly, it combines 25 existing district heating networks in Reinach, Arlesheim and Münchenstein and converts them from gas and oil into a renewable source of heat. It also supplies the uptownBasel campus and the Primeo-Energie site in Münchenstein, thus enabling Primeo Energie to take another major step towards a fossil-free future.

The energy control centre has two biomass boilers for waste wood. Thanks to state-of-the-art technologies and filter systems, the lowest possible emission values can be achieved. In the summer, heat pumps will be used with the waste heat from a new data centre on the site. The energy supply on the uptownBasel site itself is provided via a thermal grid, which balances the internal heat and cold flows as far as possible. Primeo Energie uptownBasel also provides services such as a private consumption alliance and charging stations for electromobility.

The energy centre's location in the heart of the industrial area in Arlesheim is also ideal, as it is easily accessible from the motorway and situated in the heart of the large heating network. The old, conventionally-operated heating stations that are no longer required in the supply network will be decommissioned.
With a renewables share of around 80%, the environment and climate will be protected and considerable amounts of CO2 emissions will be saved. There are plans to supply the first customers by the end of 2023.

Joachim Krebs, Head of Corporate Communications, Primeo Energie

Electricity prices: "The situation has eased somewhat."

The situation in the energy markets has made headlines repeatedly in recent months. Many energy customers are directly affected by the consequences and in some cases face massive price hikes. In this interview, Riccardo Pozzi, Head of Energy Management, talks about the current situation, the prospects and opportunities for SMEs, and things individuals can do against rising electricity prices.

Mr Pozzi, we are experiencing turbulent times in the market. What is the situation at the moment?
The situation has certainly eased somewhat. One important reason for this is that gas storage tanks in Europe are full. In recent months, gas has been the biggest price driver. Worries about Russian supplies being cut off have continued to drive up electricity prices. The market became increasingly jittery until it reached its absolute peak on 26 August last year. When it became clear that the gas storage tanks could also be filled without Nord Stream, prices fell again sharply.

Where is the gas coming from now?
From various sources. Norway has delivered more, and Russia still delivered some via the other pipelines. In addition, large amounts of liquid natural gas (LNG) were purchased from all over the world and brought in by ship. Europe benefited from the fact that Asia was less eager for energy due to China's zero-Covid policy. And thus the LNG ships came to Europe. In Germany, LNG storage facilities were built and filled within a short time. That brought some relief for the system. And there is another factor to consider – the mild autumn and winter. If things remain relatively mild, the stress in the market can be contained. However, if a major cold wave should hit us, the market will react to the scarce gas supplies and we will likely see some major price fluctuations.

Are there other factors that have helped to ease the tension?
Yes, the water reservoirs in Central Europe are once again full, at least on the north side of the Alps. In summer we experienced an extreme drought, especially on the south side of the Alps, in Ticino. The situation there is still tense. The third factor, apart from gas and water reservoir levels, is the situation of nuclear power plants in France. The fact that many nuclear power plants there are off the grid has also had an enormous effect. Meanwhile, the state-owned supplier EDF has presented a fairly stable plan for the reinstating some nuclear power plants, which has further calmed the very nervous market.

Are electricity prices now falling for business customers with market contracts?
I think that in the medium term that will be the case. For the current year 2023, most customers have already made purchases, and at extremely varied prices. The range extends from CHF 50 to CHF 1,000 per megawatt hour, depending on when the supply year 2023 was completed. This is a huge financial burden for some SMEs. But current expectations in the futures market are that wholesale electricity prices will come down somewhat each year until Europe has permanently become independent from Russian gas imports – whereby, however, we will definitely no longer reach the same gas levels as in 2020. As far as the outlook for the coming months is concerned, the rest of the winter is very important. If it gets cold, prices are likely to rise significantly, at least during cold periods.

What advice do you give customers to guard against high electricity prices?
If you can, you should increase your own production and consumption of electricity. Many SMEs, for example, have already installed photovoltaic systems on their roofs. Anyone who can reduce their electricity consumption in this way and perhaps even sell what they produce will of course come out ahead. Larger SMEs can cover their needs in several tranches in order to diversify the market price risk. Or they can conclude multi-year contracts.

How have the past months been for traders?
We have been under extreme pressure. The methods and systems of the energy industry were geared towards moderate price fluctuations and not robust enough to cope with such tremendous price swings. Some of the work had to be improvised and the tools had to be added or modified. It felt as if we were rebuilding an aircraft while flying it! A great deal was demanded from traders, risk managers and customer advisers during this time.

What can we improve?
At the very least, Switzerland should also discuss the possibility of obliging producers to sell electricity from a certain point onwards, even if they would not do so on their own. I don't blame the producers. They apply market logic, just as I would do in their place. But on the other hand, there are customers, SMEs, who are struggling to remain competitive but alarmed by the exploding electricity prices, who did not receive their supply simply due to a lack of availability on the market, while having to watch prices rise drastically every day. At such times, the market logic has failed, leaving Swiss producers and customers to their own devices on how to manage the crisis together.

Viktor Sammain, PR Editor, Primeo Energie

Primeo Energie Kosmos brings climate and energy to life

The Primeo Energie Kosmos Science and Experience Centre takes the current Energy Learning Centre into the future. From January, the new offer gives all visitors an immersive multimedia insight into climate and energy topics.

"We provide energy answers to climate issues." This is how Wolfgang Szabó sums up the objective of Primeo Energie Kosmos. The geophysicist manages the new Science and Experience Centre on the Primeo Energie site in Münchenstein. The Centre is aimed at school classes, families, clubs, companies and individuals. "Our visitors learn how to understand the relationships between climate and energy," says Szabó.

The new cube-shaped building houses the Science Centre. Visitors will find selected experimentation stations over two floors. Here, they generate electricity themselves and actively experience with all their senses what the energy revolution has to do with climate protection.

The former Electricity Museum, on the other hand, has been renovated and transformed into a state-of-the-art adventure centre. A 45-minute adventure show will take visitors on a journey into the exciting world of energy. They will feel the power of the sun, climb up a wind turbine and descend into a hydropower plant, and at the end even walk on clouds!

Primeo Energie Kosmos not only identifies current climate problems, but also presents solutions. "We want to focus on the positive," says Wolfgang Szabó. "To stop climate change, we need smart engineers." Primeo Energie Kosmos therefore aims to inspire young people to take these solutions – and thus the future – into their own hands.

Throughout the entire construction of the Primeo Energie Kosmos, the focus was on the topic of climate protection. This was achieved, among other things, by the principles of reuse and circular economy. In other words, many components have already been in use, or they come either from leftover items or from regional production. Most striking example: the lattice façade of the new building consists of old Swissgrid electricity pylons. The façade cladding, the wooden staircase, the kitchenette, the lights and even the stones and tiles for the outdoor space also come from reused materials. This saves energy and is thus good for the climate.

Viktor Sammain, PR Editor, Primeo Energie

"We have reached our sponsorship goals."

With its sponsorship activities, Primeo Energie combines social commitment with the goal of increasing brand awareness. Reto Schaltenbrand is responsible for sponsorship. In our interview, he looks back on the past year and talks about the next steps.

What were the major sponsorship events in the anniversary year 2022?
The two biggest sponsorships that year were the Tour de Suisse and the ESAF Pratteln in the Basel region. After three years as a Premium Partner, we joined in the Tour de Suisse for the first time as the main sponsor. We were able to support ESAF 2022 as one of six leading partners and as an exclusive energy supplier.

Why cycling and why the ESAF?
In line with our sponsoring strategy, we are committed to cycling in the long term. Cycling fits in with us as an energy supplier and focuses on the same values and properties such as strength, power, energy, teamwork and innovation. That's why we support various cycling races and events such as the Tour de Romandie, the Tour Alsace, the Basel Bike Festival, and local cycling clubs. Wrestling is also a very energy-driven sport, and we have been supporting such events for a long time. The ESAF was a tremendous stroke of luck for us: Not only did the biggest wrestling festival take place right on our doorstep in Pratteln, but it was also our anniversary year. It was absolutely clear that we wanted to get involved.

What are your thoughts as you look back on the sponsorship year?
The uncertainty from pandemic in January 2022 gave us very little time to prepare from March until May. From June to September, we had a very intensive period with the sponsorship events on site. But everything ran smoothly and there was a lot of positive feedback from all sides, including employees, helpers and guests.

What's the aim of sponsorship, particularly of nationwide events such as the TdS?
Our focus is on developing Primeo Energie's brand awareness, especially with regard to products such as our heating solutions, PCAs, e-mobility as well as a possible deregulation of the electricity market. As the main sponsor of the Tour de Suisse, our visibility has increased enormously, and our image at the ESAF was perceived very positively overall.

Is sponsorship already paying off for Primeo?
Yes, we reached our goals and were able to benefit greatly from the sponsored events. Wrestling is cool and attracts audiences in droves, cycling is in vogue, and interest as well as the reach have increased on all channels. According to SRF, ESAF was the sporting event with the largest share of TV viewers – 880,000 of which watched the final event, a market share of 85%. And of course that is also good for us as the sponsor.

So, what's next?
When it comes to wrestling, we will continue to support events in the region. As far as cycling is concerned, we will continue as the main sponsor of the Tour de Suisse, which means analysing this year's experiences to further optimise our commitment in 2023 and 2024.

Viktor Sammain, PR Editor, Primeo Energie