Sandbox projects

The regulatory sandbox makes it possible to test the added value of innovative technologies and business models. The objective is to allow the implementation of projects, so-calledsandbox projects, that can partially deviate from the legal framework of the current Electricity Supply Act (StromVG; SR 734.7). On the one hand, the implementation of sandbox projects allows innovative companies to test new approaches in a highly regulated sector. On the other hand, sandbox projects provide a better understanding of existing regulatory barriers to the implementation of promising and innovative technologies and business models.

The approval of projects that partially deviate from the current legal framework is based on Art. 23a of StromVG and the possibility to approve such sandbox projects. The authorization is applied restrictively and no financial support is linked to it. If necessary for the implementation of sandbox projects, financial support can be requested through the submission of the project to the usual innovation support programs relevant for the application concerned. In these cases, however, the sandbox project and financial support applications are evaluated independently.

Characteristics of sandbox projects

Only deviations from the provisions on basic supply (Art. 6 StromVG), the duties of grid operators (Art. 8 StromVG) and grid usage (Art. 10-20a StromVG) and the associated implementing regulations are taken into account when authorizing sandbox projects. Sandbox projects are innovative projects, the results of which can be used to further develop the electricity supply legislation. The projects test new solutions (technical installations, prototypes) and approaches (including socio-economic aspects and business models) in a real environment with implications for legislation on the security of electricity supply.

Support criteria

The objective is to achieve a substantial benefit to the energy system through the new technology, solution or approach. The main eligibility criteria for sandbox projects include the degree of innovation of the solution and its contribution to a secure electricity supply and/or a competitive electricity market. The new technology must stand out from the state of the art and create added value for the overall system and not for a single type of stakeholder.

The skills and experience of the project team and the methodology used in the project will also be evaluated to assess its chances of success. Projects are expected to be of sufficient geographic and temporal scope while being limited to what is necessary to achieve the intended objective.

The potential for future application of the solution is also a relevant criterion for evaluation. It is a question of assessing whether the future multiplication strategy and the actors involved in the future implementation are already identified and whether the solution brings sufficient benefits to have a clear chance of success on the market after the end of the project.

The guidelines for the submission and evaluation of applications for financial support for energy research, pilot and demonstration projects and sandboxes contain a comprehensive and detailed overview of the criteria.

Procedure for submitting applications

A sandbox project application can be submitted at any time. The official request must typically be submitted at least 9 months before the start of the project. This relatively long timeframe is due to the need to establish an ad-hoc ordinance. The application procedure comprises three stages:

Step 1: Applicants should check whether the project meets the criteria for granting a sandbox project (see Directive).

Step 2: In order to clarify the chances of success of an official application, an informal project sketch should be submitted. The sketch should present the project on 2 to 3 pages and provide information on the following:

• Objectives and problems
  
• Innovation content
• Need to deviate from the respective legal bases
• Expected outcomes of the project and how they will contribute to the future development of these legal bases
• Partners and first estimation of costs

A response regarding the chances of obtaining a sandbox authorization is usually sent to the applicants within two to three weeks after the submission of the sketch.

Step 3: Submission of the complete application with the two official forms and other relevant documents:

• Application for financial support - Energy research, pilot and demonstration programs, sandbox (bottom up)
• Finance sheet on project Costs, Financing and NASC

The project sketch and the official application must be submitted by e-mail to the contact address.

The SFOE examines each submitted application with regard to its form and content and sends the decision to the applicant by way of an appealable decision. If the application can be approved, an ad-hoc ordinance defining the framework of each regulatory sandbox as well as the rights and duties of the project participants is drawn up. The project approval is then made on the basis of this ad-hoc ordinance. If applicable, the project can be approved on the basis of an ad-hoc ordinance that has already come into force following the positive evaluation of a previous sandbox project.

The results of the project are published on the sandbox project website in the form of interim and final reports.

Documents

• Directive on the submission and evaluation of applications for financial support of energy research, pilot and demonstration projects and authorisation of sandbox projects
  (PDF, 1.2 MB, 20.12.2023) ID: 9952 | 773
• Application for financial support of energy research, pilot and demonstration projects and/or authorisation of a sandbox project
  (DOCX, 101 KB, 20.12.2023) ID: 9953 | 773
• Finance sheet for applications and financial reports: Project costs, financing and non-amortisable costs (NAC)
  (XLSX, 93 KB, 20.12.2023) ID: 9954 | 773
• Implementation of sandbox projects under Art. 23a ESA
  (PDF, 193 KB, 04.01.2023) ID: 11239 | 773

Law

Federal Electricity Supply Act of 23 March 2007 (in German)

Stromversorgungsverordnung vom 14. März 2008 (StromVV)

Last modification 02.02.2023