Local energy co-op model takes off in Switzerland

Since lawmakers introduced the local energy community model six months ago, more than 1,800 have been set up

Six months after Switzerland introduced a model for local electricity co-operatives (LEGs), communities have been eager to take up the opportunity – launching around 1,800 co-ops across the country.

The figures are based on a survey of the 30 largest Swiss distribution network operators and data from the platform for local electricity communities, compiled by trade body Swissolar.

A total of 1,323 LEGs were found the survey, which covered 71% of the country. On this basis, extrapolating the number to whole country, Swissolar estimates there are approximately 1,860 LEGs overall. 

LEGs are associations of electricity producers, consumers and, optionally, storage operators within a municipality, through which self-generated solar power can be bought and sold locally.

The model is unevenly spread across the country, with some regions lacking any projects at all, with Swissolar pointing to factors including different processes, IT systems, or offerings from the respective distribution network operators (DNOs). 

LEGs also vary in size, averaging at 7.2 participants or connections each, but ranging from three to 29.

Related: Estonia sees launch of first co-operative renewable energy project

“This indicates that LEGs do not follow a single model,” said Swissolar. “In addition to small communities consisting of just a few neighborhoods, considerably larger associations are also emerging.” 

Around 78% of participants exclusively purchase electricity, 9% exclusively produce electricity, and 13% both produce and consume electricity.

“This interplay is central to an LEG,” added Swissolar. “Locally produced electricity can be sold within the community and used as directly on-site as possible.”

But Swissolar warns the model still faces regulatory and practical hurdles remain. It is calling for the full exploitation of the potential for network usage discounts provided for in the law, the avoidance of unnecessary introductory and amendment fees, and the enabling of electricity supply within a LEG across municipal boundaries.

“The initial figures make it clear: the shared use of locally produced electricity is already a reality in Switzerland,” said Wieland Hintz, deputy managing director at Swissolar. “At the same time, there is still considerable potential.

“If the existing regulatory hurdles are reduced and the legal options are better utilized, LEGs can become significantly more attractive and make an even greater contribution to the efficient use of renewable electricity.”