Sep 15, 2025
Grüezi, energy innovators👋
Switzerland isn't just famous for chocolate and precision watches anymore. The country is quietly engineering one of Europe's most ambitious energy transformations, and it’s opening up huge opportunities for retailers who understand the value of flexibility.
Market liberalisation: Today, 99% of Swiss consumers cannot choose their electricity supplier, but that changes from 2026 onward.
Public support: In 2023, 68.7% of Swiss voters approved the Renewable Energy Act, prioritising clean generation.
“For energy retailers who understand the value of flexibility, this isn't just another market opening, it's a chance to help build the distributed energy future from the ground up”
With market liberalisation rolling out in 2026-27 and energy communities getting legal backing, the Swiss energy landscape is about to become a hotbed of new business opportunities. For energy retailers who understand the value of flexibility, this isn't just another market opening, it's a chance to help build the distributed energy future from the ground up.
Why Switzerland's timing couldn't be better
"The timing is perfect for flexibility-focused retailers because Switzerland is facing what we like to call the "Alpine Energy Trilemma"
The timing is perfect for flexibility-focused retailers because Switzerland is facing what we like to call the "Alpine Energy Trilemma":
Nuclear phase-out by the 2040s leaving capacity gaps
Winter hydropower limitations when those pristine Alpine reservoirs run low
Growing solar adoption creating daily supply/demand mismatches
Expansion of photovoltaic energy in Switzerland between 1998 and 2024 (Source: Swissgrid)
Translation? Switzerland desperately needs flexibility solutions, and the country is willing to pay for them with up to 40% discount for participants who support this move
Energy communities are the game-changer
These communities are looking for partners who can handle complexity beyond commodity suppliers.
Here's where things get really exciting for retailers who think beyond traditional supply models. Switzerland's new energy community legislation is allowing peer-to-peer trading and mandating a complete rethink of how energy flows through the system.
ZEV: Association for own consumption, Virtual ZEV: Virtual Association for own consumption
Local energy communities become your new best friends
Imagine a solar-rich business park in Zurich where one company generates 200% of its needs while its neighbor barely produces 10%. Under the old system, that excess goes to the grid for peanuts (around 6 cents/kWh and likely to go down). Now? They can trade directly at 15 cents/kWh with a 40% discount on transmission costs.
For flexibility-savvy retailers, this is pure gold. You're not just selling electricity anymore, you're orchestrating energy flows, optimising local production, and capturing value from every kilowatt-hour that would otherwise be wasted.
Consumer associations would combine scale with flexibility
Think apartment buildings, housing cooperatives and business districts all forming energy buying groups with serious purchasing power. They want green energy, competitive prices, and smart solutions that adapt to their usage patterns.
The beauty? These communities are looking for partners who can handle complexity, not just commodity suppliers. They want dynamic tariffs, demand response programs, and storage optimisation services.
The flexibility value stack is about to explode
Switzerland's transformation is creating multiple revenue streams that didn't exist before:
Arbitrage opportunities 💰
With dynamic pricing becoming the norm, the spread between peak and off-peak prices will create consistent arbitrage opportunities. Smart retailers with storage solutions can buy low, sell high, and share the profits with customers.
Grid services premium
As Switzerland integrates more deeply with EU markets through its 41 cross-border connections, grid balancing services become increasingly valuable. Retailers who can aggregate flexible assets will command premium prices for frequency regulation and voltage support.
Community optimisation services
Energy communities need sophisticated management; balancing local generation, storage, and consumption while optimising grid interactions. Essentially energy supply contract becomes a comprehensive energy management partnership.
Demand response at scale
With Switzerland planning 583 MW of new backup capacity by 2026, there's massive value in avoiding those expensive peaker plants. Retailers who can deliver reliable demand response will be essential partners, not just suppliers.
The early mover advantage is real
“The biggest opportunities go to those who show up early with the right solutions”
Here's the thing about market transformations: the biggest opportunities go to those who show up early with the right solutions. Swiss pilot projects are already proving this:
Quartierstrom in Walenstadt achieved 33% local energy self-sufficiency; double the baseline
Zurich housing complexes are hitting 90% solar self-consumption with smart coordination
Geneva cooperatives are demonstrating that prosumer communities can thrive with the right support
Powernaut’s pilots and roll-outs with a multitude of energy retailers, including Swiss players, s proving great flexibility value for retail customers.
The retailers supporting these early adopters are becoming indispensable partners in Switzerland's energy independence journey
What this means for your business
Prepare for dynamic everything
Smart Swiss retailers are already making moves. Groupe-e has launched their new Vario tariff system, proving that dynamic pricing is working in practice.
Portfolio balancing with solar first and battery second
Liberalisation will require rapid adjustments to offtake and injection volumes to minimise imbalance penalties, which can spike to 100-200 CHF/MWh during high solar variability periods. Focus on fast, reliable assets like solar PV and battery energy storage systems (BESS).
Solar is the prime starting point, offering imbalance reduction value of up to 50 CHF/kW/year through predictable generation and curtailment options, based on recent Swissgrid interventions where solar booms caused 1.4 GW imbalances
Adding BESS amplifies this, with typical payback periods of 8-14 years for residential systems (e.g., a 8-10 kWh setup at CHF 10,000-21,000 yielding annual savings of 1,500-2,000 CHF via arbitrage and self-consumption).
Heat pumps? Too slow and inflexible for rapid grid response. EVs for imbalance? Limited until V2G becomes mainstream, since most vehicles aren't charging when you need the flexibility most.
Dynamic tariffs are your new best friend
For residential customers, target EVs, PV, BESS, and heat pumps with cloud-based steering to optimize loads against hourly prices.
In Switzerland, EV adoption is strong (28% of new registrations in 2024, with brands like Tesla at ~20%, Volkswagen at ~17%, and Renault, BMW, Volvo & Hyundai combine at ~10% leading, per market trends)
A back-of-the-napkin case: Smart EV steering could save CHF280 per vehicle annually by making the most of multi-market optimisation, which includes off-peak charging and other market opportunities. Retailers can charge customers 40 CHF for the service, and for 10,000 users, that's 400,000 CHF in new revenue (excluding boosted retention from sticky, value-add offerings).
The time to act is now
Switzerland's energy transformation isn't a distant possibility. It's happening now. The legal framework is in place, pilot projects are proving the concepts, and consumers are ready for change.
The Alpine nation is about to become Europe's flexibility laboratory, and the retailers who show up with the right solutions will be the ones writing the playbook for the rest of the continent.
Ready to join the Swiss energy revolution? The mountains are calling and so are the megawatts 🏔️⚡
At Powernaut, we help energy companies across Europe seize this moment. Interested in exploring how Swiss market liberalisation could accelerate your flexibility strategy? Let’s talk.