Policy status:In Force
Date Effective:2008
Policy Type:Regulatory Instruments>Codes and standards, Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Policy Target:Geothermal
Policy Sector:Electricity
Agency:Swissgrid (Transmission System Operator)
Funding:CHF 150 Million

Owing to the inadequately known and developed deep sub-surface of Switzerland, the legislature has identified the high exploration risk for geothermal resources as a major technical barrier for development with corresponding high financial exposure. In order to offset the financial implication of the high exploration risk inherent in geothermal power projects of Switzerland, up to 50% of the total sunk subsurface development cost of finding and testing the resource may be reimbursed from a fund. The CHF 150 million fund has been accrued via the same grid surcharge that funds the cost covering feed-in tariffs. Reimbursable cost includes among other things, drilling of wells (production, injection, observation), reservoir and well stimulation, logging, testing, and evaluation. Project developers - usually at final investment decision - declare criteria for failure, partial success and full success in terms of adequate production rates, well head temperatures and chemistry of produced fluids. There is a commensurate evaluation process prior to granting the "commitment to guarantee". 

Last modified: Wed, 03 Feb 2016 11:47:58 CET