The agreement is a positive sign for companies behind five other gas-fired plants presently under consideration in the nation.
The utilities proceeding with the new gas-fired builds were facing hindrance due to the emissions regulation.
Recently, Switzerland-based utility BKW noted that neither compensation for emissions regulation nor market conditions allow gas- and steam-fired plants to be run at a profit.
Thermal power plants either have to compensate for their CO2 emissions by investing in environment protection programs or by buying emission certificates, according to Swiss law.
Swiss power supplier EOS Holding, which owns majority of CTV, said the CHP plant would be ideal for the country that plans to phase out nuclear power by 2035.
Construction of the plant is expected to start between 2015 and 2016 and would last three years, according to CTV.
