Swiss nuclear operators have no plans for new reactors despite proposed end of ban

Switzerland’s two nuclear operators have said that they currently have no reactor construction plans despite a move by the national government to overturn an ongoing ban on permits for building any nuclear capacity.

The Swiss national government, the Federal Council, announced Aug. 28 that it favors repealing the construction ban, in place since the start of 2018, following a national referendum, to give a long-term option for constructing new reactors.

Federal Minister for the Environment, Transport, Energy and Communications, Albert Roesti, said in a Aug. 28 press conference that "there are no [construction] plans on the table" but the aim is to open the door for companies to consider the nuclear capacity option.

Potential new nuclear capacity might, in such circumstances, be operational in 15 years or more, at the end of the exiting mid-term energy strategy focused on boosting renewable power, Roesti added.

Roesti explained that the government about-turn is due to a "paradigm change in the energy situation" since the 2017 referendum paving the way for the long-term phase out of nuclear power when the existing four large reactors are gradually closed.

Since 2017, Switzerland has committed itself to a zero carbon emissions target by 2050 and can no longer rely on new gas-fired power or imports of electricity from other European countries to meet rising demand, the minister added.

Swiss nuclear operators Axpo and Alpiq in principle welcomed the Federal Council move to drop the construction ban but declared they have no immediate plans to take advantage of it.

"Should the parliament wish to discuss this issue again with an amendment to the Swiss Nuclear Energy Act, Axpo would welcome this in the spirit of technological openness," the company said in a Aug. 30 email.

"However, lifting the ban on new construction does not necessarily mean that new nuclear power plants would be built in Switzerland. Many questions remain unanswered. From a business perspective of an investor like Axpo, the financial, regulatory and political risks are currently too high. Not to forget the time horizon: it will take at least 20 years before new plants are operational. Regardless of the discussion about new nuclear power plants, it is essential that renewable energies continue to be expanded in Switzerland," Axpo added.

Axpo said in a March 28 statement that it has decided to clarify "the technical feasibility of operating the Beznau nuclear power plant beyond 60 years," the current target operating life of the plant. The preliminary work, lasting approximately one year, includes "evaluation of central components, such as reactor pressure vessels, and the availability of personnel, suppliers, and fuel," the company said.

Beznau-1 and 2, each with a capacity of 365 MW, are the two oldest Swiss reactors, having begun operation in 1969 and 1971, respectively. Axpo is also the major shareholder, with a 52.7% stake, in the 1,285-MW Liebstadt reactor, which started operation in 1984.

The Swiss Federal Nuclear Safety Inspectorate does not set a lifetime limit for operation of reactors. A regular 10-year periodic safety review is the key step in deciding whether units can continue operating.

Power company Alpiq Suisse, the major shareholder in the 1-GW Goesgen, with a 40% holding, said its current priorities are the roll-out of new renewable power and continued operation of the existing reactors. Goesgen began operation in 1979.

The company also owns a 27.4% stake in Liebstadt.

Construction 'not even being asked' about

Alpiq Suisse’s managing director, Amedee Murisier, told Swiss public service broadcaster, Radio Television Suisse, Aug. 29 that "the question of [constructing new reactors] is not even being asked" at the moment. If there is a future shortage of power, then the business case for new reactors might be considered, he added.

"The Federal Council’s proposal is not to authorize new nuclear reactors but to end an existing ban on them," Murisier observed. As a question of principle and technology neutrality, Alpiq Suisse favors lifting the new reactor ban, he added.

Secretary general of the Swiss Nuclear Forum, Lukas Aebi, said in a Sept. 2 interview he believes the Federal Council’s motion to lift the ban can win the necessary support in the Swiss parliament and then, as required, in a following national referendum. The Swiss Nuclear Forum was created in 1958 and is the biggest Swiss nuclear grouping, composed of around 70 corporate and 450 individual members in favor of the peaceful use of nuclear technology.

"I think it will be tight in the parliament but there will be a majority in favor, mostly from pro-nuclear center and right-wing parties," Aebi explained. "In a popular vote, I see around 55% for lifting the ban and 45% against, but a simple majority is all that is needed," he added.

Aebi said that he also believes that the Swiss popular initiative, Stop the Blackout, whose petition sparked the new Federal Council stance on nuclear power, will also drop its broader motion on energy reform in favor of the national government motion solely on lifting the nuclear plant construction ban. Stop the Blackout also sought more central government powers on energy security policy at the expense of the cantons, or regional states. This demand risks creating a complicated and messy political wrangle, Aebi warned.

While Switzerland’s main nuclear operators have no nuclear plant construction projects, there is still room for possible partnerships to evolve, Aebi suggested. "Most of the recent Swiss nuclear construction projects were partnerships between power companies and cantons. There is still the possibility of such partnerships being formed," he commented.

"You should also bear in mind that Switzerland is a major financial center with a huge amount of capital. I am sure you can find risk capital investors if you are talking about SMR projects. The first thing is to lift the [construction] ban and then we can see if there are investors," Aebi added.