Swiss utility to support more targeted use of solar power with dynamic tariff
CKW, a subsidiary of Switzerland-based energy company Axpo, will introduce a new type of electricity tariff in 2025.
The tariff will offer incentives to customers that spread their electricity consumption as much as possible throughout the day, in order to prevent power peaks in the grid.
Axpo said in a statement on its website that high and low electricity prices for daytime and nighttime consumption will no longer be applicable. It claimed that by implementing this change, CKW will incentivize more targeted use of solar power during the day.
CKW will now calculate grid demand rates based on maximum power used, measured in kilowatts, rather than solely on kilowatt-hours consumed. The company said this approach only works because it replaced all conventional electricity meters with digital smart meters, becoming the first major utility in Switzerland to do so.
CKW said the new tariff lays the foundation for further innovation in the future. In the medium term, it plans to introduce different summer and winter electricity rates.
“During daytime hours in summer, Switzerland will increasingly enjoy electricity surpluses thanks to the large-scale expansion of photovoltaic systems,” the company said. “As a result, prices will fall in summer while rising in winter.”
Switzerland’s cumulative solar capacity reached 6.8 GW at the end of April 2024.
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