Falling electricity prices, growing supply

Industrial production in Europe fell sharply in 2009. In its wake, demand for electricity declined and prices dropped. However, Alpiq›s electricity sales in Switzerland were less strongly affected than the industry average. In Europe, Alpiq›s results were mixed, declining in South-Eastern and Eastern Europe but exceeding expectations in markets such as Italy, France and Spain.

Expansion of electricity generation outside Switzerland proceeded according to plan. In Germany, the Spreetal power station came online, and Alpiq is planning to build another gas-fired combined cycle power station near Berlin. Construction of the gas-fired combined cycle facilities in San Severo in southern Italy and Bayet in France is going well. Good progress is also being made with the Nant de Drance pumped storage power station in Switzerland. In autumn 2009, Alpiq commissioned the gas-fired combined heat and power station in Monthey, in the canton of Valais. And in January 2010, the large Cleuson-Dixence hydroelectric facility resumed operations after being closed for several years for upgrading.