Distributed energy systems

Present situation worldwide and in Switzerland

Distributed energy systems are systems or groupings of several buildings equipped with renewable energy production facilities, which combine various energy carriers such as electricity, heat or hydrogen as well as featuring energy storage facilities (e.g. batteries, thermal storage) and energy conversion technologies (e.g. heat pumps, electrolyser). The aim is to cover the bulk of energy consumption with local production by harnessing the flexibility of on-site storage and the conversion of energy carriers (power-to-heat/gas).

Despite high initial investments, distributed energy systems offer many advantages such as reduced energy costs through increased self-consumption or the possibility to smooth power peaks through energy storage and conversion. This increases flexibility in the low-voltage grid, making it possible to avoid grid extensions. Other possible benefits include the integration of power-, gas- or hydrogen- based mobility and the provision of further services such as balancing energy. Switzerland already numbers several successful examples of distributed energy systems, from single-family homes to industrial sites. One instructive example is the energy self-sufficient multi-family home conceived by Walter Schmid AG in Brütten, which has been operating since mid-2016. In general, applications span the range from energy-integrated urban neighbourhoods to self-sufficient systems in remote areas. The smooth interplay of various technologies, players and institutions is key to a successful extensive rollout of distributed energy systems.

Implications for Switzerland

The trend toward distributed energy systems will intensify in future with the global evolution of technology costs and sector coupling across electricity, industry, transportation and heating/cooling. Compared to other countries, the relative innovativeness of the Swiss construction and energy sectors creates many economic opportunities for Switzerland, especially in terms of developing, financing, implementing and operating such systems. However, integrative system solutions involving numerous technological configurations and a plurality of stakeholders will remain challenging in the short and medium term.