Direct marketing – Switzerland

Since 2020, producers of plants that receive feed-in remuneration have had to sell the energy they produce on the electricity exchange themselves, in what is known as direct marketing. Starting at 1 MW, BKW takes over the direct marketing of your administrational work.

The facts at a glance

  • Since 1 January 2020, system operators have to sell the electricity produced on the electricity market themselves.
  • This applies to plants with an output above 500 kW that already receive feed-in remuneration under existing legislation and plants from 100 kW newly incorporated into the feed-in remuneration system.
Bild Solaranlage und Windräder Mont Soleil

The remuneration now consists of three elements:

1. Management fee (paid by Pronovo)

The technology-specific management fee is intended to cover the costs and risks of marketing.

2. Market revenue

Revenue from sales on the electricity market.

3. Variable feed-in premium (paid by Pronovo)

The feed-in premium is calculated based on the plant-specific compensatory feed-in remuneration (KEV) rate minus the reference market price, which is an average price published by the SFOE.

If the market revenue generated including management fee is lower than the reference market price, the total revenue for the producer is below the KEV remuneration rate.  

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Why direct marketing via BKW?

Starting at 1 MW, we take over direct marketing of your electricity and take care of all administration. We charge a flat DM fee for this, which is set on a plant-by-plant basis, and pay out the reference market price.

You will receive the feed-in premium and management fee from the government office.

Advantages for you

  • You have no operating expenses
  • You do not bear any price risks due to market fluctuations
  • Simple and transparent pricing
  • Contractually fixed pricing makes planning investments easier

BKW already offers direct marketing in Germany, Italy and France, and therefore has extensive experience providing services for renewable plants. 

Frequently asked questions

Producers with subsidised plants have two options:

1. Do nothing

If the system operator does nothing, they no longer receive a subsidy from 1 January 2020. The feed-in premium ceases, with only remuneration from the local grid operator (market price) remaining.

2. Contract out direct marketing

The producer commissions a direct marketer such as BKW to manage their electricity. The option to switch to direct marketing has been in place since 1 April 2018, i.e. before expiry of the statutory deadline. This makes even more sense if the producer receives more in total for the electricity produced than via the standard KEV remuneration rate.

How much is the management fee?

  • CHF 5.50/MWh for solar and wind
  • CHF 2.80/MWh for hydro
  • CHF 2.80/MWh for biomass
  • CHF 1.60/MWh for waste incineration

The producer receives

  • the market reference price minus DM flat fee via a credit from BKW
  • the feed-in premium and management fee from Pronovo (Swissgrid)

  

The DM flat fee covers the marketing costs of BKW and is determined on a case-by-case basis. In total, the producer therefore receives the KEV remuneration rate plus DM premium.

All other subsidised plants can switch voluntarily to direct marketing. However, the switch is final.
What do the price elements look like in detail?
How do I have to proceed?

Contact us!