Wholesale electricity market 2025: rising prices and new uncertainties for the energy system

The USI Institute for Economic Research has published its 2025 Report on the wholesale electricity market, analysing trends in demand, supply, and prices in Switzerland and key European countries within the context of geopolitical tensions and evolving energy and climate policies.

In the first few months of 2025, electricity demand remained stable in Switzerland (+0.1%), while it declined in the European Union. On the supply side, solar power continued to grow significantly, whereas hydropower and wind power recorded negative performances. Switzerland also observed a contraction in nuclear power production.

Following the decline seen in 2024, wholesale prices have returned to an upward trend: in the first 10 months of 2025, the average price in Switzerland stood at approximately EUR 100/MWh, a marked increase compared with the previous year. Prices remain influenced by the cost of gas-fired generation in neighbouring markets.

The Report also highlights the growing weight of geopolitical factors, from the EU's gradual phase-out of Russian gas to global trade tensions, and the outlook for 2026, which begins with expectations of stable prices but with several uncertainties related to storage, hydropower and the evolution of the international landscape.

The official report is available on the IRE website: https://www.ire.usi.ch/it/ofpe/energia