Promotion of hydropower
From 2025, hydropower plants will be able to choose between an investment contribution and the sliding market premium. They can also apply for a project planning contribution amounting to a maximum of 40% of the eligible project planning costs; this is deducted from any investment grant awarded.
Operators of large-scale hydropower plants with an output of more than 10MW are entitled to a market premium if they have to sell their electricity on the market at prices lower than their production costs.
Applications should be submitted to the Swiss Federal Office of Energy.
Investment contributions for hydropower
Investment contributions can be requested from the SFOE for eligible construction projects of small and large hydropower plants.
Project planning contributions
From 1 January 2025, it will be possible to apply to the Swiss Federal Office of Energy for project planning contributions for new hydroelectric power plants or significant expansions of hydroelectric power plants.
Sliding market premium for hydropower
A sliding market premium can be requested from the SFOE for eligible construction projects of small and large hydropower plants.
Market premium for large-scale hydropower
Operators of large-scale hydropower plants with an output higher than 10 MW are entitled to a market premium if they have to sell their electricity on the market at prices lower than their production costs. The concept of a market premium was introduced in 2018 in order to support existing large-scale hydropower plants. The maximum amount of the premium is 1 cent per kilowatt hour and the scheme is limited to a period of five years (2018 to 2022).