Management premium
Client: SFOE
Neon team: Vlada Maksimova, Alexander Neef
Published: 2025
Switzerland’s TSO Swissgrid will move from a two-price to a single-price imbalance settlement in 2026. The previous formula for the variable part of the management premium for renewables in direct marketing, based on the spread between short and long prices, would structurally yield zero under the new regime. For the Swiss Federal Office of Energy, we analyzed technology-specific balancing costs under single pricing and developed a transparent new methodology: no variable premium for hydro, biomass, waste, and wind, whose imbalances tend to support the system, and an empirically derived quarterly premium for solar. This report was originally published in German.
Dr. Ingmar Schlecht
schlecht@neon.energy
+49 177 86 33 526
