Hydro Power Generation

Last year, the Swiss hydroelectric power stations owned by Atel and EOS joined forces in Alpiq's Hydro Power Generation division. Now that Cleuson-Dixence has resumed operations, the division has roughly 3,000 MW of highly flexible generation capacity at its disposal. The reorganisation took up much of the business unit's time and effort during the year. Overall performance in 2009 was positive, with hydroelectric generation ending the year around 10 % above the budgeted averages.

While high precipitation during the winter resulted in above-average inflows of water for some facilities, inflows for some power stations, mainly in western Switzerland, remained at average levels owing to strong snow evaporation. Historic lows were recorded by several run-of-river power stations due to the sustained dry period experienced in September 2009.

Large-scale projects: Cleuson-Dixence and Nant de Drance

Following comprehensive repairs to the penstock, the Cleuson-Dixence plant is up and running once more, and the full capacity of 1,200 MW will again be available to the partners from 2010. The hydroelectric complex consists of the water catchment area behind the Grande Dixence dam, a 15.8 kilometre long intake tunnel, a 4.3 kilometre long pressure shaft and the Bieudron underground power station where pilot operations started at the end of 2009. The cost of repairs and work to re-lay the penstock was around CHF 365 million. The plant had to be shut down for extensive repairs following an accident in December 2000 involving a nine-metre long crack in the penstock above Bieudron.

The Nant de Drance pumped storage power station, which utilises the head between the Emosson and Vieux Emosson reservoirs, is a key project for Alpiq. The power station is being built completely underground so as to minimise the impact on the environment. Alpiq has a 54 % stake in Nant de Drance, with the Swiss Federal Railways holding 36 % and Valais-based FMV 10 %. Nant de Drance is one of the most important Swiss infrastructure projects for hydroelectric generation and, with its 600MW turbine and pump capacity, will play a pivotal role in ensuring energy security for Switzerland. The power station is scheduled for commissioning in 2015.

Expansion and renovation projects

The year under review saw completion of the project to modernise the Flumenthal run-of-river power station on the banks of the River Aare near Solothurn. Work on optimising the turbines has improved energy efficiency by around 6 %, enabling an additional 1,750 households to be supplied with electricity. The investment cost was around CHF 25 million.

Several projects were launched last year. The hydroelectric power station in Chippis, built in 1908, is to be comprehensively modernised between May 2009 and October 2012, following which it will boast a capacity of 24 MW. The plant will be shut down for only a short time during the construction period. The cost of the project is around CHF 70 million. Other new projects in which Alpiq has a stake include a project to divert water from Lugnez to the Zervreila power stations in Vals, total renovation of the facilities of Kraftwerke Hinterrhein AG in Thusis, a project to divert glacier water in the Val d'Anniviers to the Gougra power stations in the Valais, the Forces Motrices du Hongrin-Léman pumped storage plant, and a project to expand and upgrade the facilities belonging to Electra-Massa, Energie Electrique du Simplon, Forces Motrices du Grand St. Bernard, Salanfe and Grande-Dixence. The projects are being carried out in close collaboration with the co-owners of these joint ventures.

The mission of Alpiq EcoPower AG is to expand small hydroelectric facilities in Switzerland. With the compensatory feed-in remuneration (CFR), operators receive subsidies to cover their operating costs. The young Alpiq subsidiary is working on around 120 projects for small hydroelectric schemes across Switzerland.

Water rates to be raised

Starting in 2011, water rates will be significantly increased from the present level of CHF 80 per gross kilowatt. Various cantons have launched remedial implementation measures for water withdrawals. The final deadline for implementation of the provisions of the Water Protection Act is 2012.

Several cantonal tax authorities are still discussing the possibility of direct taxation for joint ventures. These justifiable calls by the communities and cantons affected for a competitive system of taxation on output value must be weighed against the need for an appropriate correction at the generation partners' site. A new rule governing joint venture taxation must be introduced to ensure clarity and planning security in this respect. Costs rose sharply during the year due to the transfer of ancillary services to large power stations.

Lengthy licensing procedures continue to dampen capital spending on hydropower and other new renewable energies. Yet despite political assurances of a commitment to promoting hydropower, such processes are only being simplified consistently in a few cantons.

Hydroelectric power stations in Switzerland in 2009

Small hydroelectric power stations in Switzerland in 2009