Why Switzerland needs an electricity agreement with the EU

Reliable electricity for everyone – both now and in the future

Imagine it’s winter, it’s cold outside – but it’s nice and warm inside with the heating on, you’ve switched on the coffee machine and the radio is playing your favourite song.

Having access to a secure and stable supply of electricity is often taken for granted in Switzerland. Close cooperation with our European neighbours is a crucial factor.

An electricity agreement with the EU will ensure that Switzerland continues to have a reliable, secure and affordable supply of electricity in the future. In short, it will strengthen Switzerland’s security of supply.

What is an electricity agreement?

An electricity agreement is a type of contract that enables countries to trade electricity with each other and connect their grids more effectively. It is a bit like a motorway network that must function as smoothly as possible, even across national borders. Otherwise, traffic – or trade – will come to a standstill.

And that’s where the difference between traffic and electricity becomes apparent. While traffic jams on the road are part of everyday life, congestion in the grid is only possible to a very limited extent. If the load becomes too great, the grid switches off automatically. This is precisely why cross-border cooperation is so important – so that the electricity flow never comes to a standstill.

An electricity agreement is the only way to ensure that energy can be exchanged smoothly between Switzerland and Europe – in both directions, depending on who needs more energy or has surplus electricity available. This guarantees that sufficient energy is available at all times and that prices remain as stable as possible.

At a political level, the electricity agreement is part of the «Bilateral III» negotiation package between Switzerland and the EU. It is intended to create the legal basis for cooperation in the electricity sector. This represents an important step forwards, as Switzerland is currently excluded from central European bodies. An agreement would bring clarity and reliability and protect Switzerland’s access to the European grids.

The status quo is working&nbps;– but won’t do for much longer. Without an electricity agreement, the basis for today’s cooperation with Europe will no longer exist.

The political process for the bilateral agreements is made up of different stages. The official consultation process will begin in June 2025. The Swiss Parliament will then decide on a draft law on the Bilateral Agreements III – and therefore also on the electricity agreement – and will probably put the issue to the Swiss population in a referendum.

Media release on the conclusion of negotiations on 20 December 2024

What are the benefits of an electricity agreement?

Electricity will remain affordable – for households and businesses

Electricity will be the most important source of energy in the future – at home, in the office and in industry. Heat pumps are replacing oil heating systems, electric cars are replacing combustion engines, and industry is increasingly focussing on electricity instead of fossil fuels. An electricity agreement is needed to ensure that electricity and all of its possible uses, such as heating, driving or producing goods and services, remain affordable. It will guarantee fair prices and a reliable supply – for families and businesses alike.
The grid will remain stable – even in the event of an outage

Our grid is part of a large European grid – with grid operators who are like team members that all support each other. If there is less electricity available somewhere in Europe in the short term, other countries can help out, making it possible to balance out fluctuations or outages more rapidly. This close cooperation makes the grid in Switzerland more stable and secure.

This requires control energy – i.e. power reserves that can be fed in or withdrawn from the grid at very short notice in order to keep it balanced. Switzerland has only limited options of its own. An electricity agreement would give Switzerland access to the much larger European balancing platforms. This would not only make grid operations safer, but also more economical.
Imports in winter – exports in summer

In the cold winter months, there is often not enough electricity available from Swiss power plants. This means that Switzerland has to rely on imports. Without an electricity agreement, it could become more difficult to import energy – increasing the risk of an electricity shortage.

Conversely, we often produce more electricity than we need in the summer – thanks to solar energy, for example. Swiss energy producers sell this electricity abroad. An electricity agreement is needed to ensure that this system continues to function smoothly.
Active participation instead of observation

Only active participants can have a say. An electricity agreement will give Switzerland a say in the planning and organisation of the European electricity market. This will enable us to ensure that our interests are taken into account – for example in major construction projects or for the use of new technologies.
Switzerland is not an island

Our grid is closely connected to the European interconnected grid. From a technical point of view, it would be virtually impossible for Switzerland to go it alone – nor would it make economic sense to do so. Switzerland is located in the centre of Europe and plays a key role as an electricity hub. This strong grid with its multiple connections is an important pillar of security of supply in Switzerland. An electricity agreement will protect these connections.