Bern awards CHF 21.4 million in market premiums to loss-making large hydropower plants
Published · Updated
What happened
The Swiss Federal Office of Energy said large hydropower plants judged not to be cost-covering will receive CHF 21.4 million in market premiums. The decision was announced on 2 November under the federal support mechanism for large hydropower.
Why it matters
The announcement confirms that Bern is using public support to preserve incumbent low-carbon generation capacity instead of relying only on market prices. It also sets up follow-on questions about how Switzerland balances security of supply, fiscal cost, cantonal producer interests, and environmental constraints around existing hydro assets.
On 2 November, the Federal Office of Energy announced CHF 21.4 million in market premiums for large hydropower plants that were not cost-covering. The payment keeps existing hydro capacity inside Switzerland's low-carbon power base rather than letting wholesale market conditions determine plant economics alone. The move is a concrete near-term signal that the federal government is prioritizing supply security and continuity of domestic generation even when that requires budget support.
Watch for
Bundesamt für Energie publication of plant-level recipient details or implementation notes on market premiums by 2026-11-05 UVEK or Bundesrat clarification by 2026-11-06 on whether further support for existing hydropower is planned for winter supply security Swiss electricity-sector associations' formal reaction by 2026-11-06 on whether the premium level covers operating gaps at affected plants Environmental NGOs' filing or public legal-warning statement by 2026-11-06 linking hydropower support to river-restoration or biodiversity conditions
Sources
- 21.4 Millionen Franken an Marktprämien für unrentable Grosswasserkraftanlagen · admin.ch
- Medienmitteilungen · bfe.admin.ch
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