The Swiss electricity supply is facing fundamental change. The expansion of renewable energies is progressing rapidly, while at the same time controllable thermal production capacities are gradually being phased out. At the same time, electricity consumption is rising (also in the context of decarbonisation), for example due to electromobility, heat pumps and the electrification of other areas of life. These developments are exacerbating a key energy policy question: how can security of supply be guaranteed in the long term – especially in winter?
This scientific article examines this question from a legal and systemic perspective. The focus is on the current Swiss electricity market, which is designed as a so-called energy-only market. Producers are only compensated for energy actually delivered, but not for their mere willingness to provide capacity. The market design is coming under increasing pressure as it only provides limited security for investments in capacities that are rarely used but necessary for security of supply.
Against this background, the article analyses the role of existing instruments such as winter electricity reserves and reserve power plants, as well as their legal framework. It shows that although these measures can create stability in the short term, in the long term they raise fundamental questions about responsibilities, market distortions and compatibility with energy and climate policy goals.
Another focus is on the European context. Many neighbouring countries are already relying on capacity mechanisms or capacity markets. The article examines the potential impact of these developments on Switzerland, particularly in conjunction with cross-border electricity trading and a possible electricity agreement with the EU.
The aim of the article is not to provide a simple solution, but rather a structured overview of the current debate. It shows that security of supply, sustainability and market principles cannot always be reconciled without contradiction – and that the question of a sustainable market design for Switzerland is becoming increasingly important.
The report is available here.
Photos credits: Swissinfo Solar panels on the Muttsee dam in the Glarus Alps, August 2021. Keystone / Gian Ehrenzeller
