Switzerland is accelerating the transformation of its energy system. As electricity demand rises due to electrification in heating and mobility, and as domestic generation increasingly relies on renewable sources such as solar power, the need for long-term energy storage is becoming critical.

In this context, the Cantonal Government of Zurich has submitted a draft amendment to the Energy Act that proposes a new framework to promote long-term energy storage. The proposal is now pending deliberation by the Cantonal Council, where it will be discussed, potentially amended, and ultimately decided upon.  

Why long-term storage is on the political agenda

Solar power generation in Switzerland peaks in summer, while electricity demand is highest in winter. Short-term batteries can balance daily fluctuations, but they are not suitable for storing energy over weeks or months. Without long-term storage options, surplus summer electricity risks being curtailed, and the further expansion of photovoltaics could be constrained.

The draft legislation therefore addresses a structural challenge of the energy transition: enabling seasonal balancing between renewable production and demand. Long-term storage would allow excess electricity to be converted into other energy carriers and used later, particularly during winter shortages.

Core elements of the proposed legal framework

The draft amendment would assign grid operators a joint responsibility to promote long-term energy storage in order to strengthen security of supply. The proposed approach is explicitly technology-open and market-oriented:

  • Competitive tenders are envisaged to support storage solutions that deliver the highest winter contribution at the lowest cost.
  • Support for innovation would be available for pilot, demonstration, and early market projects aimed at advancing new storage technologies.
  • A storage fund would be created and financed through a transparent surcharge on electricity consumption, capped at 0.5 Swiss cents per kilowatt-hour.
  • Hardship provisions would allow partial refunds for electricity-intensive companies if competitiveness is significantly affected.
  • Regular reporting by grid operators would enable ongoing evaluation of effectiveness and goal achievement.

At the proposed maximum surcharge, the additional cost for households would remain limited, while the potential benefits include improved supply security, reduced import dependency, and greater price stability.

Implications for Power-to-X

The draft explicitly refers to storage options such as hydrogen and synthetic energy carriers, underlining the strategic relevance of Power-to-X technologies. These solutions are particularly suited for seasonal storage and can link electricity, heat, and mobility while making use of existing infrastructure.

If adopted, the proposed framework could provide important early-stage support for Power-to-X applications, helping them progress toward market maturity and system relevance.

Next steps in the legislative process

At this stage, the proposal represents a policy direction rather than binding law. Its final form will depend on parliamentary debate in the Cantonal Council and, potentially, a facultative referendum. The outcome will determine how strongly and in what form long-term energy storage – and with it Power-to-X – will be supported at cantonal level.

Regardless of the final decision, the draft highlights a growing political consensus: long-term storage is a key enabler for a resilient, renewable, and defossilized energy system in Switzerland.

Sources: Punkt4 – Zukunft Wirtschaft heute and  Draft amendment to the Energy Act of the Canton of Zurich (EnerG)