EnG 71a

^{Created by S.J.S., BFH, on 13.12.2023}

^{Last updated by S.J.S., BFH, on 05.08.2024}

Overview

On 30 September 2022, Parliament passed urgent measures to provide a secure electricity supply in winter at short notice, thus creating the framework conditions for a limited expansion of large-scale PV systems outside of building zones. These systems should produce a significant proportion of winter electricity in order to benefit from simplified authorisation procedures and individual subsidies.
This article summarises the most important information and refers to further sources.

The Main Facts at a Glance

The law expires on 31.12.2025
Projects must be publicised by End of 2025
Lump Sum of max. 60% of the Eligible Investment Costs
No Planning Obligation (i.e. no structure and utilisation planning)
Systems are considered site-specific

Min. Production of 10 GWh
Min. Winter Yield of 500 kWh/kW
Max. of 2 TWh (legally authorized projects)
Start-up of 10% or 10 GWh until End of 2025
Full Launch until End of 2030

Lump Sum Payment

The amount of the lump sum payment for legally approved projects in accordance with EnG 71a is made up of the eligible investment costs on the one hand and the uncovered costs resulting from the profitability calculation specified in the law on the other. The total amount of the lump sum payment may not exceed the amount of neither the uncovered costs nor 60% of the eligible investment costs.

Eligible Investment Costs

The eligible investment costs are made up of items such as construction costs, planning and construction management costs, transport routes and development, operating buildings, etc. These costs must be recorded in particular detail and precisely and listed transparently and comprehensibly in accordance with the regulations. Under «Resources» you will find further links to guides on listing investment costs and other helpful articles on this topic.

Uncovered Costs

The uncovered costs are made up of eligible cash outflows on the one hand and eligible cash inflows on the other.

Eligible Outflows

Eligible Investment Costs
Costs for Plant Operation and Maintenance (max. 1%)
Costs for Replacement Investments
Costs for Scientific Monitoring
Provisions for Dismantling

Eligible Inflows

Income from Electricity Sales (–> based on the SFOE’s Electricity Price Scenario)
Own Consumption
Other Income

The SFOE provides the calculation basis
Cash outflows and cash inflows are discounted using the weighted average cost of capital (WACC)
Difference = uncovered costs

Permitted Construction Regions

The stated purpose of Article EnG 71a was to facilitate large-scale alpine photovoltaic installations and to enable a substantial expansion within the shortest possible time. The restriction that electricity production from 1 October to 31 March must be at least 500 kWh per 1 kW of installed capacity effectively limited the applicability to altitudes where there are no crop rotation areas (alpine areas). According to National Councillor Stefan Müller-Altermatt on 26 September 2022, this restriction is intended to prevent agricultural land on the Central Plateau in particular from «coming under pressure».¹

However, the law does not explicitly refer to large-scale alpine photovoltaic installations, but to large-scale photovoltaic installations. This could also include installations in non-alpine areas, provided that the eligibility requirements are met. Especially if the modules track the position of the sun, the requirements could also be met on lower-lying areas.

Installations in moors and marshlands, in biotopes of national importance, in water and migratory bird reserves and on crop rotation areas are completely excluded.

2 TWh Threshold for Total Production

The expected annual production of the legally authorised projects is decisive for the calculation of total production. Once projects with a planned production of 2 TWh have been legally authorised, no further projects can be approved for implementation in accordance with Article EnG 71a. This is achieved by the fact that the Ordinance itself only permits the construction of an installation if the total production of 2 TWh has not already been reached by other installations that have already been legally approved at the time the licence becomes legally valid.

By referring to the legal validity of the licence and not the first-instance licence for compliance with the total production of 2 TWh, the aim is to ensure that projects with little chance of realisation do not block the quota of 2 TWh. This also makes it clear that the date of legal force (in accordance with para. 2 of this provision) is the date on which the last of the necessary authorisations becomes legally binding.