| Media release
- Switzerland's integration into the coordination of cross-border flows would support the stable operation of the transmission system
- Switzerland would remain able to import and export electricity, especially in the winter when it is dependent on electricity imports
- The status quo will no longer exist; without an electricity agreement, Switzerland faces the risk of being categorised as a third country
Switzerland is integrated into the European electricity system with 41 international interconnection lines. Close cooperation with the transmission system operators in the EU is of vital importance to ensure a secure and efficient supply of electricity. An electricity agreement would guarantee this by means of a state treaty. This would strengthen Switzerland’s security of supply and the stable operation of the transmission system at lower costs. Without an agreement, the current status quo will no longer exist: Switzerland will become a third country. The consequences are already becoming apparent: no access to European balancing platforms, rising costs for stable grid operation, restrictions on import and export capacities, increasing unplanned electricity flows and the exclusion of Swissgrid from ENTSO-E, the Association of European Transmission System Operators.
Stable grid operation thanks to integration into EU processes
Cross-border electricity trade in Europe is increasing in line with the expansion of the EU’s internal electricity market. Some of this electricity flows through the Swiss grid for physical reasons. Switzerland’s current inadequate integration into European processes is a major reason why Swissgrid is having to intervene more frequently in power plant deployment. This means that Swissgrid has to instruct power plants to increase or decrease their power locally in order to avoid grid congestion and ensure grid stability. The number of these interventions is increasing, as is the amount of energy that needs to be requested by Swissgrid. The volume of requested energy rose from 17,180 MWh in 2014 to 552,069 MWh in 2024. This trend will continue if no electricity agreement is concluded. If an electricity agreement is signed, however, Switzerland would be fully integrated into the relevant processes. Coordinated congestion management would reduce unplanned electricity flows and thereby the costs for redispatch – which would ultimately benefit end consumers.
Import and export capability strengthens security of supply
In the winter, Switzerland mostly has to rely on electricity imports. In the summer, on the other hand, production in Switzerland is higher than consumption, partly due to the expansion of photovoltaics. Consequently, Switzerland is dependent on having sufficient cross-border capacities to import and export electricity. The only way to protect these capacities under international law and to guarantee them in the long term is via an electricity agreement. This would strengthen Switzerland’s security of supply.
Access to balancing platforms and the day-ahead and intraday markets
Due to the expansion of photovoltaic and wind energy in Switzerland, the need for balancing energy has also increased because production is heavily dependent on the weather. As a result, the costs for the stable operation of the transmission system have risen. An electricity agreement would give Swissgrid access to the EU platforms for balancing energy. It is currently excluded from these platforms for the most part. These platforms are larger and more liquid than a small, purely national market. In addition, they give all market players simplified access to the coupled day-ahead and intraday markets. The intraday market makes it possible to balance out production fluctuations and changes in consumption at short notice by allowing market players to buy or sell electricity. This means that Swissgrid would have to use less balancing energy. Overall, this would lead to lower costs for the stable operation of the transmission system.
The status quo will no longer exist
The EU is continuously developing its internal electricity market as it continues its efforts to decarbonise the energy system by 2050. Without an electricity agreement, Switzerland would be increasingly excluded from important bodies and processes of the EU internal market and would not be able to play an equal role in shaping market regulation. The current situation is not sustainable in terms of market integration, legal certainty, active participation and stability of grid operation. An electricity agreement, on the other hand, would significantly strengthen Switzerland’s position.
Swissgrid will submit and publish its complete statement on the electricity agreement and its implementation within Switzerland by the end of the consultation period on 31 October.