Switzerland needs the electricity agreement

How will Switzerland cooperate with neighbouring countries in the electricity sector in the future? With or without an electricity agreement? Whatever happens, the framework conditions will change – the status quo, however, will no longer exist.

Switzerland at the heart of the European interconnected grid

To ensure a secure supply of electricity and a stable grid, we rely on continuous electricity exchange and close cooperation with neighbouring countries. This is rooted in history: in 1958, Switzerland laid the foundations for the European interconnected grid in Laufenburg. Today, Switzerland is closely linked to the grids of neighbouring countries via 41 cross-border lines.

The electricity system in Europe and Switzerland is currently undergoing radical transformation. Decarbonisation, electrification and the expansion of renewable energy are bringing about fundamental change. Switzerland should not have to tackle this challenge on its own.

Although Switzerland lies at the heart of the European electricity system, it is excluded from important operational processes and decisions. At the moment, cooperation with European partners is based on temporary arrangements and agreements. This status quo can’t be sustained in the long term.

How does the supply of electricity work in Switzerland?

From the power plant to the power outlet: electricity is constantly flowing and does not stop at national borders. But how is electricity generated? How does it get to the power outlet? And could Switzerland function as an electricity island?

2/3: How does electricity get to the socket?

3/3: Is Switzerland an island when it comes to electricity?

What is the electricity agreement?

The electricity agreement is a proposed treaty under international law between Switzerland and the European Union. It sets out legally binding regulations between states. As part of the Bilaterals III package, it establishes the legal framework for cooperation in the electricity sector.

The electricity agreement will enable Switzerland to participate in key European processes and platforms for energy exchange and grid operations. This is an important step; Switzerland is currently excluded from major European markets and processes. The electricity agreement will provide clarity and reliability, strengthen security of supply through electricity exchange, shared platforms for grid stability and joint planning, and guarantee access to the European power markets.

What is the current status of the electricity agreement in Switzerland?

The Federal Council negotiated the electricity agreement and submitted its dispatch to Parliament in March 2026. The parliamentary process is now under way. Deliberations have begun in the Environment, Spatial Planning and Energy Committees (ESPEC). During this phase, proposals will be drawn up to amend Swiss laws and ordinances – this is known as «domestic implementation».

Since the electricity agreement covers a wide range of technical and regulatory issues, deliberations will require several ESPEC meetings. Once the National Council and the Council of States have reached an agreement on the domestic implementation of the bill, it can be put to a public vote. This is expected to take place in 2028, alongside other proposals under the Bilaterals III.

More information: Dispatch on the Switzerland-EU Package (Bilaterals III)

Why Switzerland needs an electricity agreement

A secure and reliable supply of electricity is crucial for Switzerland as a business location. The electricity agreement will improve cooperation within the European power markets and in cross-border grid operation. This will allow the available resources to be used more efficiently and costs to be reduced.

According to the federal government’s Ecoplan study, electricity prices in 2050 could be up to 14 percent lower with an electricity agreement than in a scenario without an agreement. Lower electricity and system costs will boost the competitiveness of Swiss businesses and strengthen Switzerland as a business location.

The energy system is undergoing radical transformation. New ways of generating electricity, the rise in electrification and changes in consumption patterns are placing new demands on the operation of the electricity system. The need for more flexible generation and consumption is growing steadily. Even closer cooperation is needed between Switzerland and its European neighbours to continue to ensure security of supply and grid stability in the future.

The transformation of the electricity system can only succeed if it is carried out in close coordination with our European partners. The electricity agreement creates the necessary conditions for this.

The Swiss electricity grid is an essential part of the European interconnected grid. Switzerland benefits from its location at the heart of Europe and from close ties with neighbouring countries. As the European power market expands, transnational electricity trade is on the rise. Some of this electricity flows through the Swiss transmission grid, as it is governed by the laws of physics rather than by national borders.

The electricity agreement will ensure that the capacities and congestion of the Swiss grid are taken into account in European processes. This means that grid operations will be able to implement grid planning in a coordinated manner and will need to intervene less frequently to ensure grid stability. The larger the interconnected grid, the more effectively it can compensate for power plant failures, peak loads or fluctuations in production. Operating the electricity system in isolation would be neither technically feasible nor economically viable.

Switzerland constantly exchanges electricity with neighbouring countries. In the winter, Switzerland mainly has to import electricity, while it exports it in the summer. The electricity agreement will ensure that this remains possible in the future.

The electricity agreement will allow Switzerland to participate in the European power market and gain access to important trading platforms for energy exchange and control energy. Without an agreement, Swiss electricity producers have no access to the European market.

In addition, Switzerland remains excluded from the European control energy platforms. This leads to higher costs when procuring control energy to offset short-term fluctuations in the electricity system. As there is a much greater supply of control energy in Europe, the electricity agreement will ensure that Swissgrid can stabilise the grid more efficiently and cost-effectively, enhancing security of supply.

The European electricity system and its rules are constantly being enhanced. Developments in Europe have a direct impact on the Swiss electricity system.

The electricity agreement will enable Switzerland to participate in important European bodies. This will allow Switzerland to safeguard its interests and make sure that the specific characteristics of its electricity system are taken into account. Without an agreement, Switzerland will be largely excluded from these bodies. Grid enhancement and planning will take place without us, while we are nevertheless having to cope with the new realities. It is crucial for Switzerland to have a say so that it can represent its own interests.

Cooperation between Swissgrid and the European partners is currently based on fixed-term agreements under private law between transmission system operators. These agreements must be renegotiated regularly and do not provide long-term security.

The electricity agreement will establish a framework for cooperation underpinned by international law. It will provide planning security and legal certainty for grid operators, businesses and electricity customers. Without an agreement, Switzerland remains reliant on transitional arrangements that create dependencies, without any guarantee that these arrangements will remain in place in the future. Failing to implement the electricity agreement does not mean that the current situation will continue. The status quo can’t be maintained.