The grid, connecting all power plants, storage facilities and consumers, is the backbone of a secure supply of electricity. The means that secure grid operations around the clock are fundamental to a prosperous society. Now, with the paradigm shift from a centralised utility to decentralised (and increasingly volatile) power generation, the electricity system is in the midst of the greatest upheaval in its successful history; and at the same time, electricity consumption is set to grow significantly due to decarbonisation.  

To guarantee safe and reliable grid operations round the clock, we need to implement flexible mechanisms and structures that will enable grid operators to tap into the full potential of renewable energy sources and electric loads.  

TSO-DSO coordination  

Switzerland's grid operates across seven voltage levels, ranging from high-voltage transmission systems to low-voltage distribution networks. Historically, these systems functioned largely independently. However, the increasing integration of decentralised energy resources (such as rooftop solar panels, electric vehicles and heat pumps) necessitates closer coordination between transmission system operators (TSOs) and distribution system operators (DSOs), to maintain grid stability and reliability.  

Challenge: Functional and economic separation of TSOs and DSOs prevents the efficient usage of local energy resources – for instance, through adjusting consumption or generation in response to grid needs. 
Solution: Creating a real-time monitoring and control infrastructure (mechanisms that will enable interaction between the TSO and the DSOs, and in particular the incentives that DSOs respond to) will allow us to harness valuable local flexibility. 

Dynamic energy tariffs  

The growing penetration of renewable energy sources is accompanied by an increase in overall energy demand. This rise can be attributed to several factors, such as the shift from gas-based heating systems to heat pumps, and the increasing adoption of electric vehicles. However, despite these changes, there are still only limited incentives for end users to adjust their consumption in ways that support the stability of the grid. 

Challenge: Rising demand threatens to overload the grid at times, unless consumption can be adapted to real-time network conditions.  
Solution: Dynamic pricing structures can create incentives to adjust usage in response to network congestion. The traditional off-peak discounts are not enough: adjustments can and must be made, and communicated, from minute to minute. 

Challenge: The great diversity of end users and producers (ranging, on both sides, from large industrial plants to private households) means that a one-size-fits-all approach will not be effective.  
Solution: An ideal tariff system must consider the diverse requirements of various stakeholders, including reducing network stress, ensuring fair pricing for end consumers, enabling investment recovery, and reinforcing the power infrastructure. 

Regulatory framework  

To keep pace with the rapid changes in the energy sector, we urgently need a more adaptable regulatory framework. Many of today’s rules were created nearly a century ago and no longer suit a system shifting toward decentralised, renewable energy sources. For instance, current Swiss regulations allow individual energy resources to provide essential grid-balancing services – but not entire local distribution networks, which could play a key role. 

Challenge: Looking ahead, the energy system will generate vast amounts of data, especially from prosumers (people who both produce and consume energy), grid operators, and electricity suppliers. Clear legal guidelines are essential to manage how this data is collected and used.  
Solution: Conducting a thorough analysis of risks and needs around energy data. The findings will help identify and make a compelling case for needed updates to the legal framework.  

Challenge: Not only regulatory updates are lacking, but also supporting tools (such as new products and contracts).  
Solution: With the right rules in place, suppliers could fine-tune how they buy electricity, and grid operators could better manage congestion and plan future infrastructure.