2025 is a good year for renewable heating oil in Switzerland
After years of discussion, lobbying, and waiting, movement is occurring in Switzerland's renewable heating oil market. Signs indicate that more green molecules will enter Swiss heating systems starting next year.
After the Swiss electorate rejected the draft for a national CO2 law, the future of gas and oil heating in the country became uncertain. In the absence of unified national regulations, the 26 cantons have sought to regulate the heating sector through their own local energy laws. This has resulted in a situation where there are 26 different laws, which vary significantly; some cantons impose no restrictions on oil heating, while others have enacted a complete ban.
This confusing situation will improve next year as new regulations come into force at national level.
The new CO2 law
A new CO2 law will take effect in 2025, significantly reducing regulations in the heating sector. Additionally, the law includes various provisions and instruments that will finally support the market for renewable heating oil.
Register for guarantees of origin
On 1 January 2025, a national register of guarantees of origin for renewable fuels and combustibles will be launched. This makes it possible to count renewable gases and liquids as renewable energy. For example, biodiesel had been approved by the authorities for use as heating oil since 2023, but due to the lack of certificates, it was counted in the same way as fossil diesel. After years of lobbying by the associations, it will finally be possible to heat CO2 neutral with liquid renewable fuels from next year.
HVO as heating oil
In Switzerland, HVO has been blended in small quantities to fuel at the pump for years. However, it has so far only been of minor importance, and there is only one HVO 100 pump in Switzerland. Until now, HVO was not allowed for heating, because the customs authorities only allowed it to be imported as fuel for the road, and there was no significant domestic production.
However, from spring onwards, the customs authorities will now adapt certain regulations and release HVO for use in the heating sector. Together with the register for guarantees of origin, it will then be possible to heat with pure HVO. This is perhaps why the construction of an HVO production plant has begun, which is expected to produce 100 million HVO liters per year from 2026.
Model regulations of the energy directors
The energy directors of the Swiss cantons are jointly drawing up a so-called model regulation, which is to serve the individual cantons as a template for adapting the cantonal energy laws. In the last drafts, it looked as if the energy directors wanted to enforce a total ban on oil heating from 2030. However, after discussions with the industry and associations, the recently published model regulations for 2025 now include exemptions for the use of renewable liquid fuels. If these rules are incorporated into cantonal energy laws, renewable heating oils will continue to provide a reliable heat supply to homes not connected to district heating networks.
While the future availability and pricing of renewable fuels in Switzerland remain uncertain, there are promising prospects for the adoption of green molecules after a prolonged wait.
26 November 2024
