Socio-economic importance of water in the Alps
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1 Socio-economic importance of water in the Alps Thomas Egger Director of the Swiss center for mountain regions (SAB) Observer at the Alpine Convention for Euromontana Seilerstrasse 4, 3001 Bern Waterbalance in the Alps Territorio e del Mare Munich, October 2008
2 Water in the Alpine Convention Protocol on spatial planning, art. 11: Use of resources, services of general interest, natural handicaps ad restrictions to the use of resources The contracting parties will evaluate in the context of their legal framework to what extend a) the users of alpine resources have to pay market orientated prices, which integrate the economic value for the delivery of those resources b) services of general interest can be remunerated. (...) Protocol on energy, art. 7: Hydropower (...) 5. The Contracting Parties may, in the framework of their national legislation, examine how they can make end-consumers of Alpine resources pay market-related prices, and the extent to which the local population can be fairly compensated for services supplied in the general interest. 2 Munich,30 31 October 2008
3 The Alps - Energy supplier for Europe Country Installed power in the Alps In % of nat. electr. prod. CH MW 64% AT MW 58% IT MW 16% FR MW 7% SL MW 20% DE 500 MW 0,5% (Source: Werner Bätzing, Kleines Alpen-Lexikon 1997) Example Southern Tyrol (2005): Example Graubünden: Hydropower production: Mio. kwh Mio. kwh Own consumption: Mio. kwh Mio. kwh Export: Mio. kwh Mio. kwh (75%) 3 Munich,30 31 October 2008
4 Paying the right price for the use of water resources Water can be considered as a positive externality -> Hydropower use -> Use as drinking water -> Natural value Water Fee (Wasserzins) in alpine countries CH: Wasserzins of 80 Fr. / kw installed brut power (ca. 50 Euros) DE: Nutzungsgebühr in Bavaria of 3,5 to 7 Euro per kw FR: Redevance fixe and redevance proportionelle IT: Canone d aqua of 0,012 Euro / kwh produced AT: SL: (Source: Hans Wyer, Die öffentlichen Abgaben der Wasserkraftnutzung im Alpenraum, 2006) Price for drinking water In Switzerland, around 530 Mio. Liters of mineral water are filled into bottles each year. The city of Friburg has it s drinking water for free from the alpine Hinterland. 4 Munich,30 31 October 2008
5 Socio economic importance of water for mountain areas (1) Water Fee in Switzerland - Important source of Income for mountain cantons: Canton Revenue from water fee GL 9,3 Mio. Fr. GR 87,4 Mio. Fr. NW 1,2 Mio. Fr. OW 3,0 Mio. Fr. TI 40,4 Mio. Fr. UR 19,3 Mio. Fr. VS Total: 108,1 Mio. Fr. 268,7 Mio. Fr. 5 Munich,30 31 October 2008
6 Socio economic importance of water for mountain areas (2) Water Fee in Switzerland: Important source of income for mountain municipalities (example Graubünden, CH): 6 Munich,30 31 October 2008
7 Who owns hydropower plants? Property structure of hydropower plants in Graubünden (CH): only 17% are owned by local authorities Yearly benefit of big Swiss electricity producers in Mio. CHF Company ATEL Axpo/NOK BKW EOS RE Total > Munich,30 31 October 2008
8 Commmentary to the 2nd report on the state of the Alps Positive: + Chapter on socio-economic effects Negative: - Positive externalities not recognised - Importance of paying the right price for water (hydropower and drinking water) not identified - Role of the Alps as Energy producers for Europe neglected - Property rights: who owns hydropower plants and where do the revenues go to? -> discussion urban - rural partnership not discussed in the report Conclusion: The report does not identify the real challenges and opportunities for mountain areas and has to be amended. The report could be an opportunity to launch a debate on the right price for the use of resources in the alpine area (->exchange of experiences!) 8 Munich,30 31 October 2008
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