Swissgrid has succeeded in reducing its procurement costs by half
While strengthening its investments in the network, the national electricity transmission system operator significantly reduced its costs in the first half of 2026.
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Swissgrid has succeeded in reducing its procurement costs by half
While strengthening its investments in the network, the national electricity transmission system operator significantly reduced its costs in the first half of 2026.
3 min read
Presented in early October, Swissgrid's latest semi-annual report offers its share of insights. The first is that it is possible to reduce certain costs while continuing investments in adapting and maintaining the grid. Over the first six months of the year, the national transmission system operator has indeed managed to halve its procurement costs, brought down to 150.1 million francs. At the same time, its investments reached 164.8 million, up nearly 19% year-on-year.
Swissgrid explains this cost reduction in several ways, starting with its new pricing mechanism for balancing energy. Introduced at the start of the year, this system encourages balance groups to better match their injections and withdrawals, which allows the transmission system operator to call on less balancing energy. « This reduces costs related to the secure operation of the transmission network while improving the efficiency of the entire system », Swissgrid says in a press release. The savings achieved, estimated at 63.9 million francs, also result from improvements to optimization tools based on artificial intelligence.
Despite the savings, net profit fell by 16%, to 37.8 million francs. Swissgrid attributes this change to the reduction of tariff deficits accumulated in previous years, which reduces the interest received on those amounts. This decline in margins did not prevent the system operator from lowering its tariffs. The one for general system services fell from 0.55 to 0.27 centime per kilowatt-hour, while that covering transmission losses decreased from 0.35 to 0.20 centime. With the decline in revenues related to balancing energy, these reductions largely explain the contraction in turnover, which stands at 513.8 million francs, compared with 795.5 million a year earlier.
« This reduction in the procurement costs for balancing energy is good news. It shows that the measures taken by Swissgrid and by the sector are bearing fruit », says Irit Mandel, spokesperson for the AES.
Impact on the price of energy
The strength of these results is welcomed by the Swiss Association of Electricity Companies (AES). « This reduction in the procurement costs for balancing energy is good news. It shows that the measures taken by Swissgrid and by the sector are bearing fruit », says Irit Mandel. The AES spokesperson also recalls the launch, in autumn 2024, of the the "ESready" project, carried out with members of the association. In the short term, this initiative aims to reduce balancing and regulation energy costs through various measures. In the longer term, it is intended to improve the integration of variable generation into the energy system.
To what extent will this cost reduction observed in 2026 be passed on to electricity prices? According to the AES, it is still too early to say, since the year is not over. Any possible pass-through would not occur before 2028, however, as the tariffs for 2027 have already been communicated. The association also recalls an essential point: « These figures concern only Swissgrid's transmission network. The networks of downstream distribution network operators are not taken into account. Yet it is the latter that bear the majority of network usage costs for end customers », emphasizes Irit Mandel.
Adaptation and connection of the network
Swissgrid's investment effort will have to continue. An increasing share of revenues from auctions on cross-border capacities is already being allocated to the maintenance and development of infrastructure: 124.9 million francs in the first half of the year, in accordance with ElCom's instructions. This financing explains the decrease in net investments in the accounts, even though the amounts actually committed are increasing.
Beyond the financial results, Swissgrid reminds that the energy transition requires a strengthened, modernized and digitized grid. The development of renewable energies and increasing electrification are profoundly changing the system's needs. To prevent infrastructure from becoming an obstacle to this evolution, the company supports the the "Réseau express" project, intended to speed up authorization procedures that can today extend over several decades.
Finally, Swissgrid considers the electricity agreement with the European Union essential to security of supply. According to the company, Switzerland will remain dependent on sufficient import capacities in the coming winters. Access to European balancing energy platforms would also help strengthen grid stability and further reduce its balancing costs.
This article has been automatically translated using AI. If you notice any errors, please don't hesitate to contact us.
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