In 2024, the Swiss people approved a series of measures known as the “New Electricity Act.” What is the context for these measures? ?

What is often referred to as the “new electricity law” is not a single law, but a set of amendments to the Energy Act, the Electricity Supply Act, and their associated ordinances. To achieve carbon neutrality by 2050, Switzerland must replace fossil fuels with electricity from renewable sources. This requires improving energy efficiency and expanding renewable energy. The legal amendments primarily address the expansion of renewable energy production and the integration of this production into the power grids. They also aim to strengthen long-term supply security. The transition will lead to a significant increase in electricity demand, and a reliable and affordable supply must be guaranteed.

What are the implications for power grids of the rapid growth of solar power? ?

Photovoltaic systems generate energy at every point in the grid. Generation no longer comes solely from large power plants: it also comes from the roof of your home, neighboring buildings, warehouses, and so on. This increase in the number of generators is positive, but practices must be adapted to prevent grid congestion during periods of high generation, that is, when all the photovoltaic energy enters the grid at the same time.

How are power grids evolving to accommodate this solar power generation? ?

To manage both this local generation and the increase in consumption resulting from the electrification of society, the grids will need to be actively managed. This will help limit sharp fluctuations in electricity flows and better balance, at every moment, the energy produced and the energy consumed (smart grid). The gradual installation of smart meters at our customers’ homes contributes to this. In fact, these meters also allow you to track your consumption and identify potential savings through your customer portal. Another change mandated by law involves limiting the feed-in of solar power from new installations during peak production periods.

Isn’t it essential to consume electricity where it is generated, in order to avoid costly grid upgrades? ?

Absolutely. Self-consumption is at the heart of the transition. Using energy generated on-site directly is more efficient and beneficial for both homeowners and consumers. It can be used during the day, for example, to heat or ventilate a building. And when production exceeds demand, batteries can store the energy for later use, perhaps in the evening.

How do the measures adopted in 2024 encourage self-consumption? ?

The new legal framework introduces a market-based payment system for electricity fed back into the grid. It also proposes new models for collective self-consumption, such as virtual self-consumption groups (VSCGs) or local electricity communities (LECs), which allow producers to expand the areas where they can sell their energy. If you’d like to learn more, please contact us—we’d be happy to help.

Thank you very much, Olivier Thorens, for all these explanations!