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Table 5 Risk shift from resource users to resource owners

From: The future of Swiss hydropower: how to distribute the risk and the profits?

Regime Market risk RMP Technology differences
Fixed - Resource owners receive constant water fee payments   
- Entire market risk lies with the resource users
Flexible - Water fee payments depend on market prices Differentiated In low-price years:
- (Pumped) storage plants have a relative advantage
- Run-of-river plants pay relatively more
- Relatively higher revenues for low-land cantons
Uniform In low price years:
- Run-of-river plants have a relative advantage
- Market risk is partly shifted from resource user to resource owner - (Pumped) storage plants pay relatively more
- In low-price years: lower revenues, especially for mountain cantons - Relatively higher revenues for mountain cantons
Resource Rent Tax - Water fee payments depend on market prices and production costs   
- Market risk is partly shifted from resource user to resource owner