Evaluation and recommendations on state services and competition law

Switzerland’s transition to a decarbonized heating sector faces legal, economic, and infrastructural challenges. Many buildings still rely on fossil fuels, requiring a shift to renewable systems like heat pumps and district heating. While federal and cantonal policies provide direction, municipalities play a key role in energy planning and implementing heating solutions.

Municipal Energy Planning (MEP) helps identify priority areas for thermal networks, but legal uncertainties—such as whether district heating is a public or private task—complicate procurement, competition laws, and ownership structures. A growing trend toward public regulation suggests municipalities are assuming more responsibility, raising questions about procurement rules and private sector involvement.

The fragmented legal framework and contested mandatory grid connections add further complexity. To ensure a legally and economically viable transition, municipalities must use strategic policy tools like regulations, concessions, and incentives while balancing their roles as regulators and energy providers. Further legal research is needed to clarify public responsibilities, monopoly regulations, and mandatory connections to support Switzerland’s decarbonization goals.