Colombus Consulting has published the 11th edition of its study on the financial health of European electricity producers, with a particular focus on Swiss players and issues.
In 2025, Swiss producers are seeing a return to normality following two exceptional years: turnover is falling moderately, whilst EBITDA is declining more sharply, reflecting an easing of market prices and a very high basis for comparison. This decline does not call into question the financial strength of the players, but reveals that resilience now depends on three critical factors: the quality of the asset portfolio, effective management of exposure to market prices, and the ability to secure cash flows.
A decline in results and three drivers of resilience
In 2025, Swiss producers recorded a significant decline. Alpiq reported a 7 per cent fall in turnover and a 41 per cent drop in EBITDA, impacted by the shutdown of Gösgen, lower water inflows and a reduced contribution from trading. Axpo saw a 3 per cent decline in turnover and a 32 per cent (EBITDA). BKW falls by 5 per cent and 15 per cent. Repower records a decline of 20 per cent and 13 per cent.
This decline reflects the end of a cycle of high prices. Financial resilience now rests on three pillars: the quality of the asset portfolio, managing market exposure and securing revenue streams. In Switzerland, generators are prioritising hydropower flexibility, storage and dispatchable assets. Alpiq is pursuing a strategy of optimising Switzerland’s hydropower fleet and developing battery storage in Europe. Axpo is securing dispatchable assets in Poland to support the integration of renewables.
Swiss power generation: a low-carbon mix under pressure
In 2025, Swiss electricity generation fell to 67.7 TWh, down from 81.1 TWh in 2024 (−16.5%), due to lower hydroelectric output (37.5 TWh following a record high in 2024) and the prolonged shutdown of the Gösgen plant. Solar power continues to grow, reaching 8.1 TWh, representing a 34.6% increase in final electricity consumption.
At European level, solar power is the main driver of growth (+51 TWh), offsetting the decline in hydropower (−52 TWh) and wind power (−10 TWh). Nuclear power remains stable. The decarbonised share of the energy mix reaches 69 per cent and the renewable share 43 per cent.
Electricity prices: a persistent Swiss premium
Switzerland has a high annual average of around 102 €/MWh, reflecting a persistent premium linked to interconnection constraints with the EU. Sweden remains at 42.6 €/MWh (flexible mix), France at 63.2 €/MWh (nuclear), whilst Italy reaches 121.8 €/MWh (gas exposure). This variation reflects the physical reality of the electricity systems: European integration reduces the disparities, without eliminating them entirely when local constraints dominate price formation.
Switzerland at a crossroads in energy policy
Whilst the Federal Electricity Commission is already warning of the risk of shortages linked to geopolitical tensions, Switzerland is at a historic turning point. The country’s energy self-sufficiency stands at a mere 32 per cent of national demand, forcing the Confederation to run a energy deficit for most of the year.
Faced with crises in the Middle East that threaten European gas supplies, ElCom fears direct repercussions on Swiss supplies during cold spells. This vulnerability has triggered a major political shift: in June 2026, Parliament approved the counter-proposal authorising the construction of new nuclear power stations. A referendum in the coming years will determine whether or not nuclear power makes a major comeback in the energy mix.
At the same time, Switzerland is stepping up its efforts in domestic energy sources. Since 1 April 2026, a crucial legislative amendment has shortened the deadlines for electricity infrastructure projects of national interest, whilst the new ‘winter bonus’ aims to boost alpine solar projects. However, this acceleration is coming up against a physical reality: the electricity grids are nearing saturation point. The massive boom in solar photovoltaic power during the summer creates significant local surpluses and, at times, negative prices, whilst the surge in demand linked to data centres is straining the lines in winter. Modernising the transmission grid requires unprecedented investment to avoid a technical bottleneck.
The historic signing of the electricity agreement between Switzerland and the EU on 2 March 2026 brings this legislative package before Parliament, paving the way for a likely referendum. This agreement aims to resolve a paradox: Switzerland is a major physical hub for European electricity flows, yet remains excluded from European market platforms. Without the legal integration promised by the agreement, Switzerland is excluded from European automated trading platforms and cannot either capitalise on its emergency services at premium prices during voltage peaks, nor effectively take advantage of negative prices to store energy.
Looking ahead to the 2026–2027 political calendar, the country’s ability to strike a balance between international openness, the revival of nuclear power and the modernisation of its infrastructure will be the true litmus test of Swiss energy policy.