Swiss Power Producers Caught Between Margin Pressure and Security of Supply

The latest Columbus study shows that Swiss electricity producers remain financially sound, but by 2025, the return to normalcy following the exceptional figures of previous years will have left a significant mark. Particular focus is placed on declining revenues, dependence on water flow and nuclear energy, as well as the energy policy decisions being made in Bern. «The energy transition is no longer determined solely by climate policy ambitions. Equally crucial today are economic discipline, securing revenues, and the ability to finance critical infrastructure. For Switzerland, the additional factors of security of supply and integration into the European electricity market also come into play,» says Jean Meneveau, Managing Partner at Colombus Consulting, commenting on the study’s findings.

Margins Under Pressure

Compared to the rest of Europe, the sector posted declining key figures in 2025, though this did not call into question its fundamental stability. Aggregate revenue fell by 3.0 percent, and EBITDA by 9.2 percent; for Swiss companies, the decline was significant in some cases.

For Switzerland, the study points to a return to normal after two exceptionally strong years: lower market prices, a weaker trading contribution, and a high basis for comparison in 2023/2024 weighed on the results. This is particularly evident at Alpiq, with a 7 percent decline in revenue and a 41 percent drop in EBITDA, as well as at Axpo, with a 3 percent decline in revenue and a 32 percent drop in EBITDA. Alpiq continues to focus on hydropower, battery storage, and flexible thermal power plants.

Switzerland's Unique Situation Regarding Water

Despite the decline, the study finds that Switzerland remains a robust, largely decarbonized electricity market. The system’s unique character lies in its combination of hydropower, nuclear energy, and growing solar generation—but also in its vulnerability to hydrological fluctuations.

In 2025, national electricity production fell to 67.7 TWh from 81.1 TWh the previous year. The main reason was the decline in hydropower to 37.5 TWh following the record year of 2024, exacerbated by the ongoing shutdown of the Gösgen nuclear power plant. Although solar power continued to grow, reaching an estimated 8.1 TWh, it has not yet closed the winter gap.

Prices and Supply

The study emphasizes that Switzerland remains indirectly exposed through European market prices and winter imports. The lack of a comprehensive power interconnection with the EU limits its ability to import electricity and increases its dependence on cross-border flows during periods of market stress.

This is also reflected in price levels: The average Swiss spot price in 2025 was around 102 euros per MWh, well above the European average. According to the study, this premium has now become the new normal.

Setting the Political Course

The political aspect of the study is particularly relevant: With the counterproposal for new nuclear power plants approved in June 2026 and the electricity agreement with the EU signed in March 2026, Swiss energy policy is at a crossroads.

At the same time, the expansion of renewable energy is to be accelerated, but the study warns of grid bottlenecks and seasonal imbalances. The key message is therefore that Switzerland needs more flexibility, more storage capacity, and more reliable generation capacity in order to strengthen both security of supply and revenue stability.

At the same time, securing stable revenues is becoming increasingly important for Swiss energy companies. In an increasingly volatile and capital-intensive market environment, long-term contracts, storage solutions, and flexible production capacities are gaining in importance. Swiss hydropower, in particular, can play a central role in this regard.

Source: Colombus Consulting

This article originally appeared on m-q.ch - https://www.m-q.ch/de/schweizer-stromerzeuger-im-spannungsfeld-von-margendruck-und-versorgungssicherheit/