Switzerland's hydropower potential

Switzerland’s primary resources are hydropower potential, timber, and salt. With the exception of some export of energy in the summer to neighboring countries, Switzerland does not export any form of raw material, but it is a significant exporter of merchandise and an importer of raw materials from other countries. Switzerland’s major merchandise exports include machinery, chemicals, processed metals, agricultural products, and watches.

The Country

Switzerland is a landlocked nation in central Europe, sharing its borders with France to the north and west, Germany to the north, Austria and Liechtenstein to the east, and Italy to the south. Mountains predominate in the Swiss landscape, with the Jura in the northwest and the Alps in the south. The center of the country is a plateau, where there are hills, plains, and many lakes.

Switzerland has a limited variety of natural resources and few mineral resources. However, it led the world in gold exports in the mid-2020s, and its trade of precious metals and stones increased. Its primary commodities for export include pharmaceuticals, machinery, chemicals, metals, watches, and agricultural products. Its key natural resources are hydropower potential from its numerous lakes, forests, and salt. Switzerland’s major trading partners are Germany, the United States, Italy, the United Kingdom, France, and China. India and Hong Kong are also important export markets for Switzerland.

Although Switzerland lacks a vast quantity of varied resources, it is an important factor in the global economy, particularly because of its banking and financial services industry. By 2024, Switzerland's economy ranked thirty-eighth in purchasing power parity and consistently ranks among the world's top five richest countries by gross domestic product per capita. It also remains among the most competitive countries in the global economy.

Hydropower

Hydropower is Switzerland’s most abundant natural resource and plays an important role in the country as the major source of electricity. According to the International Energy Agency, 59 percent of the electricity generated in Switzerland came from this source in 2024. Hydropower coincides with Switzerland’s energy policy, which is based on the use of renewable resources and targets efficiency in production and usage. Reliance on hydropower for the production of energy is compatible with Switzerland’s goal of reducing carbon dioxide (CO₂) emissions, as hydropower produces no carbon dioxide. Under the Paris Climate Accord, Switzerland pledged to halve 1990 levels of greenhouse gas emissions (of which carbon dioxide was the largest) by 2030 and to cut them by up to 85 percent by 2050.

Switzerland has three different means of producing hydropower: mountain storage stations, run-of-the-river stations, and pumped storage stations. Run-of-the-river stations produced 48.8 percent of this output, and storage power plants produced 47.5 percent, while pumped storage stations contributed about 4.1 percent. By late 2024, the nation's 704 hydropower plants generated around 37,350 gigawatt hours annually.

All of these stations have systems that rely on energy from dammed water, which is used to drive turbines and generators. The storage stations are supplied by large reservoirs of water that are made by building dams. These stations are equipped with large turbines powered by the natural flow of the river’s water, but they are not adequate to meet the electricity needs during periods of high demand.

The pumped storage stations use a system of paired reservoirs to supply energy. These reservoirs are placed at different elevation levels. During periods of low demand for electricity, the available unused electricity powers pumps the transfer water from the lower reservoir to the higher elevated reservoir. It is stored there for later use. During periods of high demand for electricity, this water is released back into the lower reservoir by flowing through a turbine, producing electricity. The pumped storage stations are thus able to supply a flexible source of electric power. The cost of generating electricity varies by location and the type of station. Run-of-the-river plants tend to be more expensive to operate than the storage type.

While hydropower is a clean, renewable, and environmentally friendly source of energy from the viewpoint of air pollution, it does have other detrimental effects on the environment. The large reservoirs needed at the mountain stations and the pumped storage stations remove considerable land areas from other uses and decimate the flora and fauna of the flooded land. In addition, as the water-covered plants and vegetation decay, the possibility of methane production exists, although, given Switzerland’s cool climate, this is not a major concern. The dams used to direct water into the reservoirs also have an adverse effect on the rivers as they change the natural water flow. Because of the lack of sediment contained in water that flows from the stations, there is a potential danger of loss of riverbanks. Dams impact fish populations as well. Unless fish ladders are provided, fish are unable to cross over the dams. Water from hydropower stations is usually considerably warmer than naturally flowing water and can have adverse effects on specific fish populations.

Compared with some European Union countries, Switzerland has relatively high per capita electricity consumption. In the late 2010s, Switzerland’s electricity use relative to its power generation exceeded that of all its neighboring EU countries, except Austria. However, although the country consistently met its power needs and exported electricity in the summer, it regularly relied on imports in the winter. From the mid-2000s to the mid-2020s, consumption per capita generally decreased, with the IEA reporting a 9 percent decline by 2024 compared to 2000 levels despite the nation's expanding population. In this same period, electricity production increased 22 percent, allowing exports to increase by 29 percent, largely due to hydropower, making the nation nearly self-sufficient in electricity.

Switzerland uses nuclear energy to supplement hydropower-generated electricity to meet its power needs. By the mid-2020s, there were four nuclear power stations in Switzerland. Although the government deemed those plants in need of replacement in 2007, it subsequently decided against the construction of new stations in 2011, and a voter referendum confirmed this stance in 2017.

Switzerland has also examined other natural energy sources, including the sun, the wind, and deep heat mining. Electricity generation from solar power was 6.5 percent of the power generated in 2022, and wind energy made up 0.3 percent. Some exploration of deep heat mining has been carried out. This technique requires drilling into the earth some 5 kilometers (3 miles). Then, hot water is forced to the surface and used to drive energy-producing turbines. This process caused considerable earth tremors and was abandoned. It also occasioned fear of the possibility of eventually causing actual earthquakes. Consequently, hydropower remains the preferred and primary power source in Switzerland.

Switzerland relies on different types of hydropower plants at different times. When the power load required is low or medium, run-of-the-river plants supplemented by nuclear power plants are primarily used. During periods of high energy need, the pumped storage plants are the main ones utilized.

Forests

By the mid-2020s, forests covered approximately 31 to 33 percent of Switzerland’s land area, according to various estimates. The woodlands are spread throughout the country and provide many benefits, including acting as windbreaks, reducing flooding, and combating air pollution. The forests also provide an important stabilization of both soil and snow cover. Switzerland has both deciduous and coniferous forests. The deciduous forests, which are primarily composed of beech and oak, grow at the low altitudes, while coniferous species, such as pine and spruce, are found at high altitudes. Switzerland also has some chestnut trees, which grow primarily in the area south of the Alps. A unique aspect of Switzerland’s woodlands is its three virgin forests, that is, forests which have experienced no human intervention. The three forests are Bödomeren, Derborence, and Scatlé. Bödomeren and Scatlé are spruce forests, and Derborence is a forest heavily populated with silver fir. All three of these woodlands are situated on steep slopes, making them difficult to access. Switzerland’s forests have suffered extensively from air pollution. Switzerland also faces other problems regarding the sustainability of its forests. The country’s woodland is unbalanced in regard to the ages of trees. There is too much aged forest in proportion to the amount of young forest in the country.

Timber harvest is important to the domestic economy and lifestyle of Switzerland. In 2023, the harvest of wood amounted to 4.9 million cubic meters (173 million cubic feet) of timber. The harvested timber is used for sawed lumber and paper. It is primarily used domestically, as Switzerland is not a significant exporter of timber or wood products. Wood is the main construction material used in Switzerland to build both residential and commercial buildings. While the country does not export its timber, Swiss architects and engineers have developed innovative uses of wood and wood products in the construction of buildings that have benefited many nations worldwide (especially underdeveloped countries, where Swiss construction experts have been involved in international building projects).

Salt

Switzerland has only one working salt mine, located 9 kilometers (5.5 miles) south of Bex in the canton of Vaud. The existence of salt in the area was discovered by Maxim Roche when he drank from a spring that had a saline taste. Mining of the subterranean deposits of salt began in 1684 and continues to the present day. Salt deposits occur deep in the Earth. Salt is mined by making deep shafts into the earth, extracting the salt from the rock, and transporting it to the surface. The mine is 50 kilometers (31 miles) in length and is composed of a labyrinth of tunnels, halls, pits, and stairs. The mine produces salt primarily for domestic consumption. Some naturally occurring brine salts are produced in Switzerland.

The Bex mine contributes to the Swiss economy as a salt-producing mine that provides jobs and an important commodity, and also as a tourist attraction. A section of the mine is open to the public for tours. This salt mine near Bex is one of the region’s main attractions and draws a large number of tourists each year. Visitors are able to discover the techniques used to mine salt from the mine’s earliest operation to the present day. In 1684, when mining was first undertaken, miners worked long hours with primitive tools; the process of extracting the salt was dangerous and physically difficult. Modern methods offer a sharp contrast and are an example of the benefits derived from mechanization.

Ecological Resources

While Switzerland has almost no natural resources that are either physically exportable or important parts of the global resources from which energy is obtained and usable items are produced, the country has made unique use of what natural resources it has. Switzerland has developed a globally important sector of its economy in the field of service. Tourism, along with consulting and insurance, are included in the list of services provided by Switzerland. With its two mountain ranges, the Alps and the Jura, Switzerland offers hiking, mountain climbing, and skiing. Its lakes and rivers provide fishing and water sports, and its forests provide additional hiking, nature study, and hunting.

In 2001, tourism ranked third in export income for the country. In terms of export revenue, the metal and machinery industry ranked first, and the chemical industry ranked second. Tourism brought in a greater export revenue than did either the watchmaking or the textile industries. Tourism plays a vital role in the Swiss economy. By region, the number of people employed in tourism is highest in the mountainous areas, where alpine sports and activities create a large tourist industry. Spending by visitors in Switzerland contributes to about 3 percent of GDP. Many sectors of the Swiss economy, such as hospitality and transportation businesses, are highly dependent or partially reliant upon tourism. Many retail sectors also rely on the tourism industry. Tourists involved in various sports purchase a significant amount of equipment once they arrive in the country.

Other Resources

Switzerland has almost no mineral resources. There are small, virtually insignificant deposits of iron and manganese in the Jura. Switzerland has a large deposit of marble located in the Jura. Other natural resources in Switzerland include sand, gravel, and limestone.

Switzerland produces a variety of agricultural products, including fruits, vegetables (especially potatoes), grains, meat, dairy products (such as cheese), and wines. Manufactured products for which Switzerland is known include watches, clocks, machinery, pharmaceuticals, and precision tools. In addition to tourism, Switzerland’s service economy is focused on financial services that attract international corporations seeking to benefit from favorable Swiss banking regulations.

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