Market Conditions and Regulation Recommendations Recommendations for action for a well-functioning electricity market

To considerably increase the share of new renewable energy, first and foremost it is politicians who need to take action. They need to ensure the provision of efficient support in the form of flexible instruments tailored to the market maturity of the individual technologies. This also includes the broad use of CO₂ levies and better framework conditions for local organisational models such as self-consumer energy communities. New renewable energy needs to be integrated in the electricity system and gradually transferred to the free market.

Alongside the grid expansion, the issue of demand must also be addressed if the long-term stability of the Swiss electricity system is to be assured in a cost-efficient manner. Electricity consumption should be coordinated flexibly in line with the growing volatility observed in the electricity supply. Decentralised storage solutions can foster the desired flexibility. ESCs need to develop instruments aimed at steering demand, while politicians are required to create the framework conditions required for this.

Without access to the European electricity market, the costs for supply security will increase considerably. The electricity agreement with the EU is therefore key. In order to counter the supply risks from abroad that will increase one way or another, politicians must also develop the most economic solutions possible.

In order to prevent contradictions and redundancies during the targeted transformation of the electricity system, the worlds of politics and administration must develop a strategy that is consistent across all levels. This will require the willingness of the various interest groups to reach pragmatic compromises in the interest of the system as a whole. The overall strategy must, however, leave freedom for experimentation.