Our paper outlines the future of hydropower in Switzerland, within the context of the European inter-connexion, taking into consideration all the factors that may affect its value in the long run. The complexity and uncertainties are taken into account. This type of analysis is very important to develop consistent policies and strategies. In this regard, we highlight the issues related to supply security, environmental protection and income creation. We illustrate that high hydropower rents can be expected in the future. These rents may be used to modernize and retrofit (technically and environmentally) power plants. Hydropower is a renewable energy with highly acceptable levels of environmental impact compared to other sources and furthermore, through its water reservoirs, it provides electricity markets with the flexibility needed to stabilize networks, cover peak and super-peak loads and deal with intermittent energy sources, notably solar and wind power. Climate change and higher residual water flows may even increase hydropower's value, to the extent that such resources will become scarcer. However, reservoir management should be optimized according to changes in natural environment as well as markets. Our conclusion is that hydropower represents a great opportunity for mountain regions. However, there are risks that should not be underestimated; risks linked to the policies adopted, possible new rules, as well as electricity market reconfiguration. The end of water concessions should be assessed from this perspective. This article represents the first step in our research, as planned by the ACQWA project. The second step is an assessment of the impacts of hydrological changes on hydropower production and profitability, which will also include a Rhone Valley case study. In the third and final step, a synthesis will be carried out in collaboration with other groups involved in the assessment of the impacts of climate change on hydropower.