Swiss Electricity Market 2026: Key Decisions for Security of Supply

In 2026, Swiss energy policy will focus on the long-term resilience of Switzerland’s electricity supply. Important debates and far-reaching decisions are on the agenda – ranging from the Switzerland–EU electricity agreement to national legislative proposals. An overview.

The past few years were shaped by the energy crisis and the short-term measures associated with it. In 2026, the focus will increasingly shift toward the long-term resilience of the electricity system. Numerous important discussions and decisions are pending in Parliament and in the implementation phase.

Electricity Agreement: Securing Import Capability with a Proposal That Can Win Majority Support

Last summer, Switzerland and the EU published the draft of the electricity agreement. Such an agreement represents a crucial step toward strengthening Switzerland’s security of supply in the long term. It would stabilize relations with the EU, secure Switzerland’s vital import capability for the winter months, and sustainably reduce system costs.

An electricity agreement would require various adjustments to Swiss law. The legislative amendments planned by the Federal Council are now also on the table. However, their implementation is in some respects stricter than required by the agreement. Negative examples include overregulation in the areas of basic supply and unbundling. This was criticized accordingly during the consultation process. The federal government now has until spring to improve its proposal for the implementing legislation. After that, the draft will be submitted to Parliament’s energy committees. The parliamentary process will take at least until the end of 2026, and likely longer. Parliament’s objective must be to adopt a proposal capable of winning majority support. Whether this will ultimately succeed and whether Switzerland can secure long-term access to the European market—so important for security of supply—through an electricity agreement will only become clear after the expected referendum, i.e. no earlier than 2027.

Accelerated Expansion of Renewables and Grids as Key Elements of Security of Supply

Better integration into the European market is only one piece of the puzzle on the path to a secure electricity supply in Switzerland. Equally indispensable are sufficient and well-balanced domestic electricity production and a high-performing electricity grid.

Last year, Parliament adopted legislation to accelerate permitting procedures for production facilities. This streamlines approval processes for photovoltaic and wind power plants of national interest and shortens potential legal appeals. In the current year, the focus will be on implementing these requirements as quickly and effectively as possible.

In 2026, attention in Parliament will turn to the grids. Following initial decisions by the National Council, the Council of States will discuss the so-called grid acceleration proposal during the spring session. This aims to improve approval procedures for transmission and distribution network facilities. It will be crucial that the distribution grid is adequately taken into account, as increasing decentralized generation will otherwise lead to bottlenecks without grid expansion.

Nuclear Energy as an Option?

Critical voices are growing louder as to whether the chosen path of renewable energies will be sufficient. At the same time, nuclear power has generally regained acceptance among the population in recent years. Under current legislation, however, the construction of new nuclear power plants is prohibited. The popular initiative “Stop the Blackout” seeks to indirectly lift this ban through a constitutional amendment. The Federal Council has submitted a streamlined counterproposal to Parliament that specifically removes the statutory construction ban. If the counterproposal is adopted by Parliament and submitted to voters together with the initiative, it is conceivable that nuclear power could be permitted again. New construction projects would still have to undergo comprehensive and lengthy approval procedures. However, a positive decision would restore technological openness and support the long-term operation of existing plants in the recruitment of experts, as well as provide incentives for research, education, and local supply chains. Parliamentary deliberations will take place this year, with a referendum expected in 2027.

Reserves as Insurance Against Shortages

In 2026, work on the long-term establishment of an electricity reserve will also enter a crucial phase. Last year, Parliament created an explicit legal basis for fossil reserve power plants, the implementation of which is scheduled for 2026. Among other things, contract negotiations are underway with providers of new reserve gas-fired power plants that were awarded contracts in last year’s tender. These are intended to replace the temporary reserve power plants by no later than 2031. At the same time, the legislative revision introduced a demand-side reserve, which now needs to be implemented at ordinance level. Under this mechanism, large consumers can commit to reducing their energy consumption during a crisis in exchange for compensation.

Greater Transparency in Crises

During the energy crisis, the international electricity industry faced liquidity shortages. This was due to sharply increased collateral requirements on forward markets as a result of exceptionally high market prices, linked to the hedging of electricity production. As a result of these experiences, companies have significantly improved their risk management and become more resilient. In addition, international exchange regulation has been adapted to allow greater flexibility and transparency in meeting liquidity requirements.

The federal government is also seeking to make the Swiss system more resilient and is calling for greater transparency with a view to future crises. At the end of 2025, the Federal Council therefore adopted a proposal introducing comprehensive reporting obligations for system-relevant electricity suppliers. This proposal is expected to be submitted to the parliamentary committee for preliminary consultation in the summer. As the parliamentary process typically takes some time, the federal government also intends to extend the subsidiary financial support for system-relevant electricity companies created during the crisis—currently set to expire at the end of 2026—until 2031. The corresponding dispatch was also submitted at the end of 2025 and is scheduled to be discussed in Parliament as early as the spring session.

Discussions Will Continue

The energy crisis has passed, yet Switzerland’s long-term energy supply remains on uncertain footing. This year, important legislative proposals will be debated and implemented to make the electricity system more resilient and to set key course directions for the future. Whether these efforts will be successful or whether further course corrections will be necessary remains to be seen. In any case, Switzerland’s security of supply will continue to be an important and highly engaging topic of discussion.