How distribution grid operators (DSOs) can use building flexibility

A distribution system operator (DSO) can use building flexibility by asking heat pumps, batteries, EV chargers and PV systems to shift, reduce or increase their power at the right time and place. This relieves local grid congestion, lowers peaks and can defer or avoid grid reinforcement.

Why building flexibility matters to DSOs

Low-voltage grids now carry two new kinds of stress. At midday, many rooftop PV systems feed power back into the grid. In the morning and evening, heat pumps and EV chargers add new peaks. Both happen at the edge of the grid, where DSOs have little real-time visibility.

Swiss law now names grid-oriented ("netzdienlich") use of flexibility as a tool for DSOs. Article 19a of the Electricity Supply Ordinance (StromVV), in force since 1 January 2026, says a use of flexibility is grid-oriented when it lets the DSO:

relieve a strained local grid situation;
avoid a grid expansion;
postpone grid measures; or
reduce grid costs in its own grid area.

Main use cases

Congestion management

When a transformer or a feeder approaches its limit, the DSO can request a short change in power from flexible assets behind that part of the grid. Examples: a battery charges from PV at midday, a heat pump shifts its run time, or EV chargers reduce power for a short period.

Peak shaving

Many sites peak at the same time. Coordinated scheduling of heat pumps and EV charging spreads the load and lowers the peak that the grid must carry.

PV feed-in management

Swiss DSOs have a guaranteed right to curtail a limited share of feed-in at the connection point (see below). Flexible loads and batteries can reduce the need for such curtailment by absorbing PV power locally.

Deferring or avoiding reinforcement

If flexibility keeps a grid section within its limits, the DSO can postpone a new transformer or cable, or avoid it. This is the logic of the NOVA principle.

The NOVA principle

NOVA stands for "Netzoptimierung vor Verstärkung vor Ausbau": grid optimization before reinforcement before expansion. Swissgrid states that it plans grid expansion according to this principle and only plans an expansion when all other options in the existing grid are exhausted. Swiss law sets the same order for grid planning: as a rule, a grid operator expands its grid only when optimisation, including the use of flexibility, or reinforcement cannot keep the grid safe, efficient and high-performing over the planning horizon (Art. 9b para. 2 StromVG). For a distribution grid, using building flexibility is one form of the first step, optimization.

Swiss rules on the use of flexibility (since 1 January 2026)

The Federal Act on a Secure Electricity Supply from Renewable Energy (often called the "Mantelerlass") added Article 17c to the Electricity Supply Act (StromVG). The Federal Council put this article into force on 1 January 2026, together with new ordinance rules (Art. 19a–19d StromVV).

Topic	Rule	Legal basis
Who owns flexibility	End consumers, producers and storage operators are the flexibility holders. Anyone who wants to use flexibility needs a contract.	Art. 17c para. 1 StromVG
Contracted DSO use	DSOs may use flexibility in a grid-oriented way in their grid area through non-discriminatory contracts, including remuneration.	Art. 17c para. 2 StromVG
Contract content	At least: use of a control system, scope of use, how and how often the holder is informed, remuneration, duration, termination. DSOs publish relevant information, in particular remuneration rates, every year.	Art. 19b StromVV
Guaranteed uses	Two uses without contract: (a) curtailment of a share of feed-in at the connection point; (b) use in case of an immediate, significant threat to safe grid operation. These apply even against the will of the holder.	Art. 17c paras. 4–5 StromVG
Limit on curtailment	The DSO may curtail at most 3% of the energy produced per year at the connection point. Guaranteed uses are not remunerated.	Art. 19c paras. 1 and 4 StromVV
Transparency	The DSO informs affected holders about reasons and scope of guaranteed uses on request or at least once a year. DSOs report emergency uses to ElCom every year.	Art. 19c para. 2 StromVV; Art. 17c para. 5 StromVG
Existing control (for example, ripple control)	Flexibility the DSO already used before 1 January 2026 counts as existing. The DSO must inform holders every year. Holders can prohibit further use, in writing.	Art. 17c para. 3 StromVG; Art. 19d StromVV

For a DSO, this means: guaranteed uses are a safety net, limited in scope. Regular, planned use of building flexibility works through contracts with the flexibility holders, with published remuneration.

Local flexibility markets and coordination

Because flexibility belongs to the holder, the same device can be under contract with more than one party. A battery can serve its owner's EMS, an aggregator in the balancing market and the local DSO. Swissgrid has pointed out that market, grid and system uses can compete, and that coordination models are needed.

Local flexibility markets are one approach. The DSO publishes where and when it needs flexibility, and providers offer it. Other approaches are bilateral contracts and flexible connection agreements. In each case, the DSO needs forecasts of how much flexibility is available in each grid area.

Interoperability: SmartGridready

To use flexibility at scale, devices, EMS and DSO systems must speak a common language. In Switzerland, the SmartGridready association works on standardized communication between products, buildings and the distribution grid. It offers labels for energy management systems, for buildings and sites, and for DSOs and energy suppliers. EnergieSchweiz is one of its supporting organizations.

Key facts

Art. 17c StromVG and Art. 19a–19d StromVV on flexibility are in force since 1 January 2026.
Guaranteed DSO curtailment: at most 3% of the energy produced per year at the connection point (Art. 19c para. 4 StromVV).
Guaranteed uses of flexibility are not remunerated (Art. 19c para. 1 StromVV); contracted uses include remuneration (Art. 17c para. 2 StromVG).
DSOs must publish remuneration rates for flexibility contracts every year (Art. 19b para. 2 StromVV).
Holders of existing flexibility can prohibit further use in writing within 30 days of the DSO's information, or with three months' notice to the end of a calendar year (Art. 19d para. 3 StromVV).
NOVA: grid optimization before reinforcement before expansion (Swissgrid). Swiss law sets the same order for grid planning, including the use of flexibility (Art. 9b para. 2 StromVG).

Where kuafu fits

kuafu is an AI-powered grid-edge orchestration platform, offered as a service, that connects building owners, EMS providers and grid operators. It monitors and controls local energy resources such as heat pumps, building batteries and electric vehicles, and gives grid operators forecasts of flexibility and service availability. This supports congestion management and balancing.