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Is your business ready to lead the sustainable energy transition?


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Discover how the sustainable energy transition is reshaping the Swiss business landscape – with smart, resilient and collaborative solutions.


In brief

  • As power shifts to renewables, smart systems, AI and flexibility are key for Swiss firms to remain competitive and boost resilience.
  • To lead in energy transition, companies need major investment and smart risk planning.
  • Cross-border cooperation and hydrogen infrastructure access are vital; Switzerland must stay integrated in Europe’s energy systems to safeguard supply.

The energy landscape in Switzerland – and across Europe – is undergoing tectonic changes. The energy crisis triggered by the Ukraine conflict, coupled with climate-related events and structural fragilities in the European energy system, has placed energy security at the center of economic planning. For Swiss companies, this transformation presents both opportunities and obligations. The sustainable energy transition, with its overarching goals of decarbonization, electrification, decentralization and digitalization, is not just a political or ecological goal – it’s a business imperative.

Vulnerabilities exposed – lessons from the energy crisis

Late 2021 and 2022 exposed deep systemic security vulnerabilities in Switzerland’s energy system. Delayed maintenance in French nuclear plants, droughts reducing hydroelectric output and disrupted logistics along the Rhine river – compounded by geopolitical tensions – led to energy shortages and soaring prices. Swiss energy companies faced liquidity crises in electricity trading. This was not a one-off anomaly. It was a wake-up call.

Companies across all sectors are now facing a new risk matrix that reflects geostrategic effects. Energy costs and supply uncertainties have become central to operational resilience. For energy-sensitive sectors – among them chemicals, pharmaceuticals, cement, paper and precision manufacturing – ensuring access to stable and affordable power is now as critical as managing supply chains or cyberthreats.

Decarbonization and electrification – industry under pressure

Switzerland’s long-term energy policy is committed to phasing out nuclear power by 2045 and ramping up renewables to 45 TWh by 2050 (from 6 TWh today). The bulk will come from photovoltaics. This massive shift implies that the future energy production mix will be more volatile, distributed and weather-dependent.

From 6 TWh today
of power from renewables by 2050

Electrification is central to decarbonization. Especially in heating and mobility, electricity will replace fossil fuels. Businesses must adapt their operations to run on electricity – by installing heat pumps, electrifying vehicle fleets and redesigning production processes. Not all industries can electrify completely; those reliant on high-temperature heat or chemical reactions will have to explore alternative options, such as hydrogen, synthetic fuels or carbon capture. For companies, the challenge is double-edged: transforming operations to consume cleaner energy, while ensuring that the energy is reliably and affordably available.

Moreover, Swiss and EU regulations are rapidly evolving. Corporations must prepare for stricter carbon reporting and mandatory energy audits. Renewable procurement quotas and incentives for green infrastructure will drive operational changes and increase compliance costs.

Likewise, investors and customers increasingly expect climate-aligned strategies. ESG performance affects capital access, reputation and competitiveness. Companies that align energy strategy with ESG priorities can enhance brand equity and stakeholder trust.

Adapting to the new grid

The shift from centralized base-load power (nuclear, gas) to decentralized renewables (such as rooftop solar) disrupts how electricity is produced and consumed. Grid intelligence will be vital for load management, feed-in management from decentralized assets and new mechanisms that go beyond price will be needed to coordinate supply and demand flexibilities. Swiss companies will increasingly operate within a dynamic energy ecosystem populated by prosumers, storage providers, electric vehicles, aggregators and energy communities. This ecosystem requires:

Artificial intelligence will have a key role to play going forward in forecasting and optimizing consumption as well as in managing feed-in from decentralized assets. Companies that invest in smart grid-compatible systems – from building automation and battery storage to energy management platforms – will improve both their sustainability and their resilience to external shocks.

The future energy system will be defined by flexibility. Companies that can shift consumption to times of surplus, offer battery storage to the grid or curtail demand in response to price signals will be able to capture both savings and new revenue streams. But flexibility is a competitive market. Coordination is complex. Multiple actors will compete to sell or use flexibility. Companies must:

  • Understand dynamic tariff structures
  • Respond to price signals
  • Participate in flexibility or ancillary markets

This opens opportunities for service-based business models. For instance, facility operators can offer their aggregated or interruptible energy loads to grid operators as stabilizing assets.

Getting risk management right

The transition requires enormous capital investment and, in turn, wise financial risk management. From solar panels and EV charging stations to grid upgrades and hydrogen-ready pipelines, new infrastructure needs to be built. Swiss companies must decide whether to build and operate their own renewable generation. Other options likely to gain traction in future include the possibility of entering into joint ventures for shared energy assets or lease solutions from energy service companies.

This raises strategic questions: Should companies invest in vertical integration (energy self-production) or stay focused on core competencies and outsource energy solutions? In our experience, each company’s path is unique – depending on its size, industry and risk appetite.

Companies will also need to navigate fluctuating energy prices, carbon pricing and potential green taxes or incentives. This involves sophisticated financial planning that will require a steep learning curve.

Navigating fluctuating energy prices, carbon pricing and potential green taxes or incentives requires a cutting-edge corporate strategy, focused business model development, and sophisticated financial planning.

Resilience is not just about long-term transition – it’s about near-term survival. The recent blackout on the Iberian peninsula and liquidity crises in Swiss utilities have shown that companies must be prepared for grid instability.

Critical sectors such as healthcare, data centers, telecommunications and finance must have emergency energy plans in place, including back-up generation and battery storage. In addition, resilient IT and operational systems are mission-critical.

For all companies and especially power utilities, energy risk must be part of enterprise risk management. Business continuity planning must include scenarios for prolonged outages, price shocks and supply interruptions. Digitalization is the great enabler of the green energy transition. Smart grids, AI-driven forecasting, IoT-enabled energy devices and automated control systems are the foundation of the future grid. Companies should:

  • Digitize energy monitoring and management
  • Leverage AI to optimize load profiles
  • Use cloud platforms for remote energy control
  • Explore blockchain for peer-to-peer energy trading

These tools support not only risk mitigation and cost savings, but also new revenue models – such as demand-response services, energy-as-a-service contracts or participation in local energy markets.

Collaboration is critical for energy resilience

Switzerland’s energy future depends on integration – not isolation. As a non-EU country, Switzerland faces barriers to full participation in European energy markets. Yet, physical and economic ties to the EU power grid are vital, especially during winter months, when domestic hydropower reserves run low. Imports – such as surplus French nuclear power in early spring – help fill seasonal supply gaps.

The absence of a bilateral electricity agreement with the EU limits access to cross-border energy trading and regulatory coordination, creating uncertainty for Swiss businesses. Improved energy diplomacy is in the private sector’s interest and essential for long-term supply security.

Beyond electricity, access to European hydrogen infrastructure is increasingly important. For industries that cannot fully electrify, hydrogen and its derivatives will be critical. Swiss companies must advocate for inclusion in EU hydrogen corridors and invest in the capacity to use alternative fuels.

The energy transition is too complex and capital-intensive to tackle alone. By unlocking the flexibility needed, strategic collaboration across sectors and borders is the fastest path to resilience and innovation. Companies should explore joint ventures, shared infrastructure projects and local energy communities – and work closely with utilities, tech providers and government actors. In a volatile energy landscape, coordinated action isn’t just smart – it’s essential.

Act now, lead later

The future of energy in Switzerland will be decentralized, digitalized and decarbonized. The path will be turbulent – but filled with opportunities. For Swiss companies, the question is not whether to engage, but how.

Power utilities must assess their energy exposure, redefine their infrastructure needs, embed resilience into strategy and invest in digital tools and partnerships. Photovoltaic plants will represent a considerable proportion of Switzerland’s electricity generation portfolio. Thus, investing in the energy transition requires a careful balancing of benefits and costs. The market-oriented integration of photovoltaic systems into the electricity market is of crucial importance. To do so, it is essential for power utilities to be able to develop products to incentivize flexible consumption patterns. The development and implementation of smart flexibility products are indeed essential to leverage the potential for load shifting in the market.
 

Whether in energy supply as well as in manufacturing, healthcare, finance or construction, energy will be a defining business variable for the next generation. Energy security may be the responsibility of the energy industry – but energy resilience is everyone’s business.


Master the energy transition

EY helps businesses take the lead in the energy transition through strategic insight, operational excellence and advanced risk management.


Summary

The energy transition in Switzerland – driven by decarbonization, electrification, decentralization and digitalization – poses major challenges and opportunities for businesses. Rising risks from energy insecurity, regulatory shifts and infrastructure needs demand urgent action. Companies must invest in smart systems, resilient operations and flexible energy use while navigating evolving markets and partnerships. Strategic collaboration, digital innovation and ESG alignment are key to staying competitive and future-ready.

 

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