The market for PPAs (Power Purchase Agreements) in Switzerland is still emerging compared to other European countries, with only a few transactions publicly known so far. However, the Federal Act on a Secure Electricity Supply from Renewable Energy Sources is expected to significantly boost the market size in the coming years.
With successful PPA projects already concluded in Spain and Italy, for example, Swiss-based MET Group aims to take a leading role in Switzerland as well. The integrated energy company’s goal is to enhance the market acceptance of PPAs in Switzerland and provide innovative solutions in renewable energy.
Current numbers show that there is still a long way to go until energy-intensive companies in Switzerland will purchase substantial volumes of electricity from renewable energies via free market access – including via PPAs. But at the same time, they also demonstrate that the potential for PPAs in the Swiss market is considerable.
The Federal Act, approved by a referendum in June 2024, prepares the ground for Switzerland to rapidly produce more electricity from renewable energy sources such as water, sun, wind and biomass. Looking at the size of the Swiss renewable energy market, Switzerland’s total net-electricity production in 2023 was 66,679 GWh, of which the total renewable energy production was 42’207 GWh, i.e. 63.3% of total. The majority of the Swiss renewable energy production is still the “old renewable energy”, hydropower production (53.1% of total).
As for the volume of PPAs signed so far in Switzerland, it is rather low. However, ongoing national initiatives to enhance renewable energy penetration, such as the “Solarexpress” program targeting Alpine solar projects, will likely increase the market size of PPAs. All things considered, there is a considerable upside potential for PPAs in Switzerland, resulting in at least several TWh per year.
