Annual Report

Year in review

Swissgrid can look back on a successful reporting year. The commissioning of the line between Bassecourt and Mühleberg was a particular highlight. To ensure that the grid meets future requirements, Swissgrid also worked intensively on planning the Strategic Grid 2040. In order to promote digitalisation and innovation, projects were launched in both the technological and corporate culture areas. Swissgrid consistently upheld its commitment towards achieving greater integration into European processes.

Grid operation

High availability of the Swiss transmission grid

In the past reporting year, Swissgrid guaranteed an availability of the transmission system of well over 99.9%.

At times, 2023 was characterised by tense grid operations, especially in the summer. This was due to grid elements being taken out of operation for construction and maintenance work and to a high level of production. As a result, Swissgrid had to use more redispatching to eliminate grid congestion.

The frequency in the European interconnected grid deviated from the target frequency of 50 hertz much more frequently in 2023 than in previous years. These frequency deviations were triggered in particular by the feed-in of renewable energies at unforecasted levels and by strikes in France. Procedures coordinated between European transmission system operators for dealing with frequency deviations therefore had to be applied several times. Swissgrid coordinated the restoration of the frequency to the normal range in cooperation with Amprion.

Grid operation

Swissgrid of the future

Grid operations – rising to meet new challenges

Swissgrid is facing ever greater challenges in system operation. In response, it is implementing its «Vision System Operations». Important milestones were reached in 2023: new personnel was hired to strengthen the division, and the foundations for new career opportunities were laid.

«Vision Operational Planning» aims to ensure more efficient coordination of the outages required in connection with rising investments in the grid. The first steps were initiated in 2023.

Grid operation

European context

Comprehensive revision of operating agreements and the Swiss Operational Handbook

The signing of the Synchronous Area Framework Agreement (SAFA) in 2019 laid the foundations for further cooperation between Swissgrid and European transmission system operators at a technical and operational level. Swissgrid had to make changes to grid operational planning and real-time operation processes as a result. Swissgrid started revising its operating agreements and the Swiss Operational Handbook in 2022 in association with representatives of 18 power plant and distribution system operators directly connected to the transmission system and with SBB. Good progress was made in the course of the year. The consultation process for the finalised documents is planned for 2024.

Grid infrastructure

Investments in the grid

In order to increase grid security and security of supply in Switzerland in the long term, Swissgrid invests between CHF 200 million to CHF 290 million in the renovation and expansion of the transmission system each year. Swissgrid also ensures ongoing maintenance of the existing infrastructure. In addition to inspection and maintenance work, this also includes the replacement of conductors, the revision of circuit breakers, corrosion protection for supporting structures, deforestation or avalanche protection, as well as the repair of installations after a damaging event. Swissgrid invests a total of around CHF 50 million a year for these purposes.

Grid infrastructure

Commissioning of the Bassecourt – Mühleberg line

The voltage increase on the existing line between Bassecourt and Mühleberg from the previous level of 220 kV to 380 kV is an important milestone in preparing the Strategic Grid 2025. This work is essential for ensuring security of supply in Central Switzerland – especially in the winter months. The line was successfully put back into operation at the end of November 2023.

Grid infrastructure

Greater security of supply for the left bank of Lake Zurich and the city of Zurich

Swissgrid is expanding the 150 kV line between Samstagern, Thalwil, Waldegg (Zurich) and Obfelden to 220 kV in stages. This will increase the transport capacity as well as the security of supply for the city and the entire Zurich region. Construction work progressed as planned in 2023 on the section between Schweikrüti (Thalwil) and Kilchberg. A section of the line in Gattikon (Thalwil) was successfully put into operation at the end of October 2023, initially still at a voltage of 150 kV. The current line in this section, which partly runs through local recreation and residential areas, will be dismantled by the end of 2024.

Grid infrastructure

Progress on the grid project between Mörel and Ulrichen

Swissgrid is modernising the extra-high-voltage grid in the Valais. A new 380-kV extra-high-voltage line is being built along a distance of around 30 kilometres between Mörel-Filet and Ulrichen. In the year under review, the remaining six of a total of 27 electricity pylons were erected on the section between Mörel-Filet and Ernen and the conductors were installed. The commissioning of the line section between Mörel-Filet and Ernen will be possible in 2025 at the earliest, as soon as Valgrid’s new 65 kV substation in Ernen is ready for operation. The 237 pylons on Swissgrid’s current 220 kV line and the 65 kV line will then be dismantled, which will provide noticeable relief for the residential area in the Bister, Grengiols and Ernen region.

Grid infrastructure

Dismantling work in the Rhone plain

The dismantling of the old 220 kV line between Chamoson and Chippis began in the fourth quarter of 2023 and will continue until spring 2024. Swissgrid will remove three further lines at lower voltage levels by 2027 as a compensation measure for the new 380 kV line that has already been put into operation. This means that 90 kilometres of overhead lines and 322 pylons will disappear completely from the Rhone plain. The new 380 kV Chamoson – Chippis overhead line will be used to transport energy from large hydropower plants and to connect the Valais to the Swiss and European extra-high-voltage grid.

Kabelleitung im Gotthardstrassentunnel

Grid infrastructure

Swiss context

Grid connection for Birr reserve power plant

In 2022, the federal government decided on various measures to counteract an electricity shortage and to ensure security of supply in the winter. These measures included the construction of the Birr reserve power plant with total power of almost 250 MW. Swissgrid created a new grid connection so that the energy from the mobile gas turbines could be fed into the transmission system via the 220 kV substation in Birr. The grid connection has been ready since 24 February 2023 after a record construction time of less than six months. The reserve power plant would therefore have been operational in a potentially sensitive phase at the end of the winter of 2022/2023.

Grid infrastructure

Swiss context

Temporary voltage increases

The Federal Council decided to temporarily increase the voltage of the Bickigen – Chippis (Gemmi line) and Bassecourt – Mühleberg transmission lines in order to strengthen security of supply in extraordinary situations in the short term. Swissgrid had prepared itself technically and operationally to operate both lines at 380 kV on a provisional basis. In January and February 2023, successful test operation at a voltage of 380 kV took place on both lines. This measure would have allowed additional electrical energy to be fed into the transmission system in the event of a critical supply situation.

Unterhalt

Grid infrastructure

Grid projects in the approval process

A large number of grid projects are in the approval process: in the spring of 2023, Swissgrid and SBB submitted a planning application for the replacement of the high-voltage submarine cables between Brusino and Morcote. Work is scheduled to begin in 2024. On 25 February 2023, the Federal Council approved extensive underground cabling over a length of around 23 kilometres for the Innertkirchen – Ulrichen line in its sectoral plan for transmission lines (SÜL). The underground cabling will be installed either in existing and newly constructed tunnels (main variant) or in the multifunctional Grimsel railway tunnel. In September 2023, the Swiss Federal Office of Energy and Swissgrid jointly presented the planning corridor for the «All’Acqua – Maggiatal – Magadino» grid project to the public. The approval processes for the Chippis – Mörel line and for the voltage increase on the Bickigen – Chippis line (from 220 to 380 kV) are still pending at federal level.

Grid infrastructure

Groundbreaking ceremony at the Bonaduz substation

The groundbreaking ceremony on 16 June 2023 marked the start of work to modernise the Bonaduz substation and install a new transformer. This new transformer will increase the operational flexibility of the Bonaduz substation and improve security of supply in the canton of the Grisons and the rest of Switzerland. The transformer will connect the 380 kV grid with the 220 kV grid. Work is expected to last until the end of 2025.

Grid infrastructure

Swissgrid of the future

A grid for a secure energy future

The renovation of the energy system is placing new demands on the grid. In the reporting year, Swissgrid pressed ahead with the planning of the Strategic Grid 2040. The aim is to detect and eliminate congestion in the transmission system at an early stage. The necessary regional target values for production and consumption were determined in consultation with electricity producers and grid operators connected to the transmission system. Based on this data, Swissgrid uses market and grid simulations to determine the optimisation and reinforcement requirements for the Swiss transmission grid for the target year of 2040. In April 2024, Swissgrid is expected to submit the results of this periodic multi-year planning to the Federal Electricity Commission, which will review their adequacy and appropriateness. Swissgrid will then publish the Strategic Grid 2040 in 2025.

Security

Creating a good safety culture

A good safety culture requires a willingness to address safety issues in depth. That is why Swissgrid organised another edition of the «Safety & Security Days» in the current reporting year, during which employees received practical training and were given the opportunity to reflect on safety-conscious behaviour.

Security

Emergency communication network for crisis situations

The emergency communication network (NKN) went live on schedule on 1 August 2023. This represents a significant milestone in business continuity management at Swissgrid. The NKN covers the whole of Switzerland and connects important Swissgrid locations. The main role of the NKN is to ensure that affected regions can be reached in the event of regional outages and interruptions to Swissgrid’s main communication network so that important processes can be maintained.

Grid operation

Swissgrid of the future

Closer coordination between grid operators

As a result of the energy transition, the number of flexible energy resources in the grid is growing. Swissgrid and ewz carried out a pilot project in collaboration with Equigy to try and make better use of these flexible resources for stable grid operation and to increase coordination efficiency. The pilot project was successfully completed in December 2022. The next phase, which will run until the end of 2024, will involve collaboration with other industry partners.

Further projects are planned or have already been launched: the «OPTESO» project aims to develop a decentralised mechanism to allow grid operators to jointly carry out grid security calculations. In the reporting year, Swissgrid identified potential use cases during the detailed concept phase and developed a prototype to demonstrate the mechanism. In addition, the project team made progress on the prototype as part of the pilot realisation phase and began using real data from the project partners.

Grid infrastructure

Swissgrid of the future

Better monitoring of the condition of pylons

In 2021, Swissgrid launched «Pylonian», the Internet of Things innovation project. This involved placing sensors on pylons to measure parameters such as pylon vibrations and inclination, temperature and solar radiation. At the end of the reporting year, Swissgrid collected real-time data from selected test pylons over a period of one and a half years and linked data anomalies with real events. The introduction of «Pylonian 2.0» increases the piloted number of sensor types to cover additional application scenarios. The integration of new telemetry data makes it possible to monitor the condition of the pylons more effectively and to optimise parameters such as forecasting of the decentralised feed-in. The newly launched «Pylonian 2.0». project increased the piloted number of sensor types to cover additional application scenarios.

Grid operation

Swissgrid of the future

Photovoltaic forecasts to improve system operation

The «Energy Perspectives 2050+» envisage a significant expansion of photovoltaics (PV) in Switzerland. This expected growth will lead to considerable challenges for system operation. Swissgrid launched a project designed to significantly improve the internal data basis for PV feed-in.

The idea is to produce forecasts with a high regional and temporal resolution, based on publicly available data on the PV systems installed in Switzerland. The forecasts will be made available internally via the Swissgrid data platform. This data can be used for various purposes, for example to assess the effects of PV feed-in on load flows and on balancing more effectively. This will create direct added value for system operation. The first prototype was realised in the spring of 2023. The foundations for the productive environment on the Swissgrid data platform were laid in the autumn.

Swissgrid of the future

Sharing data – creating added value

With its Strategy 2027, Swissgrid is driving forward the digitalisation and automation of processes as well as the scalable, cross-domain utilisation of data. It is also laying the groundwork for the use of new technologies, accelerating the implementation times of data-related applications, facilitating collaboration with partners and establishing an efficient operating model for data-related applications.

Swissgrid of the future

Company

Anchoring innovation within the company at every level

The rapidly increasing complexity and volatility of the electricity system is resulting in more and more time-critical system interventions. To successfully overcome these challenges in the future, innovative approaches are needed at a technical and organisational level. In response to this, Swissgrid introduced a focus on «Innovation and Digitalisation» in its Strategy 2027.

Swissgrid drove forward various innovation projects with partners in the reporting year.

The company also introduced measures to strengthen its culture of innovation. Activities such as the «Inspiration Talks» series of events, the «Ideas Forum» and the «Innovation Days» provided new impetus and encouraged interaction. This momentum should allow employees to continue to take the initiative and to develop projects or new solutions from ideas in the future.

Swissgrid of the future

Company

Fit for the future thanks to skills management

According to the World Economic Forum’s «Future of Jobs Report 2023», 44% of employees will need additional or different skills in the next five years, and six out of ten employees will have development and learning needs as a result. Swissgrid is responding to this change with skills management tailored to the specific challenges of Strategy 2027.

Swissgrid of the future

Company

Swissgrid is safeguarding critical knowledge

Swissgrid carries out annual succession planning for management functions and key personnel, and assesses the potential of all employees. As part of this assessment, a systematic survey of all employees with critical and business-relevant knowledge was conducted for the first time in 2023. Among other things, the focus was on critical knowledge for system operation, on technically critical knowledge that is not available or only available to a limited extent to other people, and on knowledge that would take a considerable amount of time to pass on. Swissgrid will agree on individual measures with the holders of this critical knowledge to ensure the transfer of know-how. The aim is to keep this expertise available within the company, even in the absence of the employees concerned, in order to avoid gaps in knowledge.

Market developments

Expansion of balance group monitoring

In order for Swissgrid to be able to guarantee grid stability at all times, it is dependent on receiving data that is as precise as possible from the balance groups, of which there are over 110, at an early stage. This is because the balance groups have a contractual obligation towards Swissgrid to ensure the best possible balance between the energy supplied and the energy taken from the grid. Swissgrid has therefore expanded its balance group monitoring: since mid-February 2023, balance groups with metering points have been continuously providing production and pumping forecasts in addition to consumption forecasts. This data enables Swissgrid to improve its monitoring of the balance between the energy supplied and the energy consumed. The main aim of extended monitoring is to jointly recognise a massive imbalance at an early stage and to notify the balance groups so that the volume of control energy to be used can be reduced.

Grid operation

Swiss context

A secure supply of electricity for the winter of 2023/2024

The initial conditions for the 2023/2024 winter supply were better than those of the previous winter: reservoir levels were on a par with previous years, gas storage facilities in Europe were almost full, and France had normal nuclear power plant availability. This is expected to remain the case in the future. Swissgrid once again did everything in its power to fulfil the new roles assigned to it by the Federal Council to increase Switzerland’s winter supply. The company was responsible for the auction of the hydropower reserve, took structural measures to ensure that the voltage on the line between Bickigen and Chippis could have been temporarily increased if necessary, connected the reserve power plant in Birr (AG) to the transmission system, and took over the operational handling of the potential deployment of emergency power groups as an additional reserve. As in previous years, Swissgrid procured a proportion of the ancillary services required for spring 2024 by organising an early tender in autumn 2023. In addition, a yearly auction for cross-border capacities between France and Switzerland for 2024 was held for the first time in September 2023 to procure control power.

Grid operation

Market developments

Compensation systems for the extra-high-voltage grid

Swissgrid is responsible for voltage maintenance in the extra-high-voltage grid. Reactive power resources are contracted for this purpose, but they are still not made available in sufficient quantities at all times. This is due to Switzerland’s own greater requirements for reactive power as a result of grid expansion and the increasing amount of underground cabling. For this reason, the Board of Directors resolved on 24 January 2023 that Swissgrid should build and operate its own reactive power compensation systems. In 2023, Swissgrid launched corresponding preliminary studies for specific locations and began a project to ensure the targeted use of systems. These systems and their use will promote safe, powerful and efficient grid operation.

Grid operation

Swiss context

Hydropower reserve for the winter of 2023/2024

Swissgrid is responsible for the procurement auctions and the operational management of the hydropower reserve for the winter. The hydropower reserve is used to reserve energy in reservoirs that can then be requested in the event of a shortage. In the reporting year, Swissgrid completed the procurement for the 2023/2024 hydropower reserve with auctions in three tranches on behalf of the Federal Electricity Commission. The costs for the total energy volume of 400 GWh amount to EUR 55.5 million (previous year: EUR 296 million).

Swiss context

Consolidation legislation – a legal basis for the power reserve

On 29 September 2023, the Federal Assembly adopted the «Federal Act on a Secure Electricity Supply from Renewable Energy Sources» (known as the «consolidation legislation») in the final vote. Swissgrid raised its concerns throughout the process. Among other things, the consolidation legislation establishes the legal basis for the power reserve and for the Winter Reserve Ordinance that has been in place since 1 October 2022. A referendum was called opposing the legislation, and the electorate will vote on the issue on 9 June 2024.

Swiss context

Acceleration of authorisation procedures

The grid plays a decisive role in the success of the energy transition. There is an urgent need for action to speed up grid-related authorisation procedures in order to guarantee security of supply in Switzerland in the long term. The Federal Council wants to simplify the procedures for large installations for the generation of electricity or heat from renewable energies. Among other things, it envisages the designation of suitable areas in the structure plan for wind, water and PV systems, a concentrated planning approval procedure for wind and PV systems, and regulatory deadlines for the competent cantonal authorities and the courts. To speed up grid projects, the sectoral planning procedure for transmission systems is to be shortened. In future, the Federal Council will simply determine the planning corridor, including the technology (overhead line/cabling). This is an important step towards speeding up procedures, but it is not enough on its own. Further measures are urgently needed with regard to the grid.

Grid operation

Swiss context

Simulations for security of supply

The Federal Electricity Commission has updated its analyses on security of supply in the medium and long term. These analyses allow conclusions to be drawn about the reserve capacity required to ensure a secure supply of electricity in 2025. The Commission tasked Swissgrid with conducting a study on short-term electricity adequacy for the year 2025. To this end, Swissgrid carried out a total of 1,575 simulations with various meteorological conditions and unforeseeable power plant outages, and calculated the probability and magnitude of any potential congestion. Based on the results, no supply problems are indicated in any of the simulations in the updated reference scenario for 2025.

Swiss context

European context

Progress towards an electricity agreement

The Federal Council adopted benchmarks for a negotiating mandate with the EU in June 2023, and submitted a draft for consultation in December 2023. Swissgrid welcomes this negotiating mandate, as the conclusion of an electricity agreement with the EU is of central importance for secure grid operation and security of supply in Switzerland.

Market developments

European context

Participation in European control energy platforms at risk

Due to the lack of an electricity agreement with the EU, Swissgrid’s access to the European control energy platforms TERRE, MARI and PICASSO, and to International Grid Control Coordination (IGCC), is jeopardised or blocked. Swissgrid is committed to participating in these platforms in order to ensure the secure and efficient operation of the Swiss transmission grid in the long term. To this end, the company ensures technical compatibility with European processes and products, and put the Capacity Management Module into operation in October 2023. This will optimise the allocation of cross-border capacity for the international exchange of control energy via the European platforms.

Swissgrid is also taking legal action against decisions by the European Commission and the Agency for the Cooperation of Energy Regulators (ACER). These pending proceedings will allow Swissgrid to emphasise its legal opinion that it is entitled to participate in the control energy platforms.

Market developments

European context

Interim solutions for cross-border capacities

In order for electricity to be traded internationally, corresponding cross-border capacities must be available. The transmission system operators from the EU member states coordinate their free cross-border capacities within capacity calculation regions. Due to the lack of an electricity agreement with the EU, Switzerland is not part of the neighbouring «CORE» (northern borders) and «Italy North» (southern borders) capacity calculation regions. Thanks to contracts under private law with the transmission system operators, Swissgrid has nevertheless been included in the capacity calculation for the «Italy North» region as a «technical counterparty» since the end of 2021. However, the contract with «Italy North» must be renewed annually and requires the approval of the regulatory authorities in all the countries concerned.

Swissgrid is also endeavouring to conclude a contract with the transmission system operators in the «CORE» region. As flow-based market coupling has already been implemented in the «CORE» region, a new concept had to be developed to take Switzerland into account for capacity calculation in this region. Although this concept does not allow Switzerland to participate in market coupling, the new concept can ensure that the capacities allocated at the country’s northern borders are utilised as fully as possible without Swiss grid elements being overloaded by market coupling in «CORE». The integration concept was submitted to the regulatory authorities of the «CORE» region in autumn 2023. The concept will be implemented following successful validation.

Grid operation

European context

Paradigm shift in grid security processes

Regional Operational Security Coordination (ROSC) is a requirement of the European System Operation Guideline (SO GL). Under the «Synchronous Area Framework Agreement» (SAFA), Swissgrid has contractually agreed to implement this requirement in the same way as the European transmission system operators. After completing the two-year concept phase, Swissgrid began implementing the new processes in September 2023. The introduction of ROSC has resulted in a paradigm shift in grid operations. Whereas in the past, the transmission system operators themselves identified measures to ensure operational security as part of their congestion management, such measures will now be determined centrally. The aim is to prevent contradictory grid relief measures being taken in different countries and to optimise costs.

Due to the lack of an electricity agreement, Switzerland is increasingly excluded from processes on the European internal electricity market. For this reason, Swissgrid’s participation in market-relevant processes such as capacity calculation or the European control energy platforms is problematic and disputed in court. Thanks to contracts under private law with neighbouring transmission system operators, Swissgrid is involved in processes to ensure operational security, which mitigates system risks to a certain extent in the short term.

Swissgrid of the future

Company

New enterprise resource planning system for more efficient processes

On 3 January 2023, a new enterprise resource planning system that provides intelligent, integrated end-to-end support for Swissgrid’s business processes went live on schedule. This made it possible to fully digitalise various processes, making Swissgrid’s business activities more efficient and effective overall. The new solution also offers the potential to integrate additional processes and to achieve optimisations, enabling Swissgrid to reach an important milestone on the path to a digital, intelligent workplace.

Company

Sustainability report creates transparency

In its Strategy 2027, Swissgrid has decided to establish sustainability as a part of its strategy and to strengthen the principle of sustainability throughout the company. As an important part of this, the company published its sustainability commitment for the 2022 financial year in the form of a report for the first time on 8 August 2023. Swissgrid thereby creates comprehensive transparency about its activities and key figures in the area of sustainability, with reference to the standards of the Global Reporting Initiative (GRI). The focus is on the four fields of action Purpose, People, Partnership and Planet. The report is based on the United Nations Sustainable Development Goals (SDGs). Swissgrid is now presenting an integrated Annual and Sustainability Report for the 2023 financial year for the first time. This is also based on the requirements of the Swiss Code of Obligations with regard to non-financial reporting.

Swissgrid organised «The Climate Fresk» workshops to firmly establish sustainability in the minds of employees. The aim of these workshops was to raise awareness of climate change and to provide information on the relevant scientific principles.

Company

Change on the Executive Board

On 1 July 2023, the Board of Directors appointed Nell Reimann (56) as Head of Business Unit Market and a member of the Executive Board. She succeeds Maurice Dierick, who decided to leave Swissgrid with effect from 30 June 2023. Nell Reimann has been working for Swissgrid since September 2016. As Head of System Development, she was initially responsible for the strategic and operational management of the department. In this role, she harmonised and optimised interfaces and processes at the control centres in Aarau and Prilly. Since 2019, Nell Reimann has been Head of System Operations for Aarau and Prilly.

Company

Dialogue with the population, industry stakeholders and politicians

Swissgrid provides transparent and continuous information about its activities and construction plans. In 2023, Swissgrid once again held information events on planned construction projects and strengthened dialogue with the public by attending various trade fairs. In April 2023, the Swiss Museum of Transport in Lucerne opened its new permanent exhibition «Experience Energy!» with the participation of Swissgrid. Swissgrid also continued exchanging information with industry players and politicians. Events included an industry webinar and a grid utilisation conference. In addition, another session event was organised with partners from the electricity sector in Berne in March 2023.

Company

Swissgrid issued another corporate bond

On 5 June 2023, Swissgrid successfully issued another bond on the capital market with a volume of CHF 200 million, a coupon of 1.90% and a term of three years. The proceeds of this bond will be used to repay current financial liabilities and to finance ongoing investments, procurement costs and the costs of the power reserve for the winter.

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