“Many of our innovations aren't sexy – but they're effective”

Text: Bettina Bhend (AWP) | Photography: Markus Bertschi

A glance at the newspapers shows that wind farms are under fire, we are contemplating a return to nuclear power, and a growing number of people believe that the Energy Strategy 2050 has failed. What is going wrong?
The discussion about our energy supply has ground to a halt. Although we as a society have a common vision in the form of the Energy Strategy 2050, we are failing to implement it because there is no consensus on the measures needed to get there.

What do you suggest we do to move forward?
The time has come for an honest discussion about what is feasible – economically and physically. It is simply not true that we can meet our energy needs with water and sun alone: photovoltaics does not provide enough energy in winter, and hydropower fluctuates greatly – advancing climate change is likely to only exacerbate that. So anyone who rejects wind turbines must say yes to an alternative that supplies electricity during the cold season, such as nuclear or gas-fired power plants.

Are new technologies also needed to shape Switzerland's energy future?
Not necessarily. We basically have all the technologies we need today to achieve our goals of decarbonisation, security of supply and affordability. However, there are conflicting goals among the three dimensions of the so-called energy trilemma. The optimum can be achieved through diversification across multiple technologies. While wind power is the second most important source of energy in Europe, for example, it is almost completely absent in Switzerland.

What are the reasons for this?
Due to objections, ideologies, conflicts of interest and NIMBYism – the "not in my backyard" attitude – we are not making full use of the available technologies. This is certainly not only the case in Switzerland, but it is particularly pronounced here compared to other countries.

And politically, what course needs to be set for Switzerland to achieve its Energy Strategy 2050 goals?
In my view, integration into the European energy system is essential. We are being increasingly excluded – that must not be allowed to happen. An agreement with the EU is needed. Above all, however, a liberal market is crucial. If we do not allow market forces to operate, the decarbonisation of the energy supply will, at best, become much more expensive. In the worst case, we will miss the target and waste a lot of money in the process. Empirical evidence clearly shows that innovation does not arise from planned economy measures, but from competitive pressure.

And how does innovation happen at Axpo?
By far the most important source is our employees. We deliberately avoid centralised innovation processes so that innovation at Axpo takes place as far as possible internally. However, we also enter into partnerships. For example, we invest selectively in start-ups that are working on products relevant to our business – such as the use of drones for grid maintenance. It makes no sense to try to reinvent the wheel.
 

How do you see your role as CEO in the context of innovation?
My job is to create the ideal conditions for innovation to happen. On the one hand, this involves the operational framework and cultural aspects such as tolerance for mistakes and willingness to take risks. On the other hand, I have to provide sufficient resources such as money, staff and time.

And what do you do beyond these general management tasks?
I try not to get in people's way and let them get on with their work.

Is it particularly difficult for Axpo to be innovative as a public infrastructure company with a state mandate?
No, not really. In everyday life, Axpo is run like a listed company. In this respect, the same rules and framework conditions apply to us as to many others. We are exposed to political discussions, but these take place on a completely different level from our actual innovations.

What kind of innovations are these?
Basically, we are technology users, not developers – but we invest in battery storage solutions and the digitalisation of energy supply, for example Hydro Digital. We have also implemented our own ideas in highly complex energy procurement and supply contracts, thereby enabling progress. Such innovations may not be particularly sexy, but they are effective.