Switzerland uses electricity imports to offset the marked seasonal fluctuations in electricity production from hydropower plants. Relations with the EU and thus the European energy markets will in future determine how and at what cost this compensation can be assured. In the absence of an electricity agreement, the associated costs will be much higher.
The historically prominent role of Switzerland in the European electricity sector has declined due to the advancing integration of European energy markets and the country’s strained relations with the EU. Studies suggest that supply security can be assured up to 2025 irrespective of how Switzerland’s relations with the EU are governed. However, the situation may become critical, for example, as soon as Germany not only phases out its nuclear energy facilities, but also its coal-based electricity production – which is planned by 2038. A greater decoupling of Switzerland from the EU electricity market could cause instability in the supply grids. The measures that are necessary to ensure supply security in this case are associated with higher costs and require a regulatory framework. To prepare accordingly, Switzerland should quickly clarify its relations with the EU.