On behalf of the Swiss Federal Office of Energy (BFE) and the Federal Electricity Commission (ElCom) Frontier Economics has conducted an analysis of different types of cooperation between Switzerland and the EU in the electricity market.

The report summarising our findings has now been published.

As Switzerland is not an EU member, EU regulations for cross border trading of electricity are not automatically adopted in Switzerland, but are instead defined through bilateral agreements. In context of the changing electricity market and new EU regulations, these agreements will need to be updated in the near future. This raises the question of how the cross border trading of electricity between Switzerland and the EU should be organised in the future to secure security of supply and maximise welfare.

Frontier Economics in collaboration with TU-Graz has therefore analysed different cooperation forms (e.g. from fully integrated market coupling to limited NTC based cooperation) applying EU power market modelling and transmission network simulations. Overall the study finds that increased cooperation with neighbouring countries will significantly increase security of supply and welfare in Switzerland.

Frontier regularly advises on a wide range of energy market topics.  For more information, please contact us at media@frontier-economics.com or at +44 (0) 20 7031 7000.