4.1 Property, plant and equipment
In 2024, Alpiq acquired two companies and integrated them into the consolidated financial statements. For detailed information, see note 5.1.
CHF million | Land and buildings | Power plants | Others 1 | Assets under construction and prepayments | Right-of-use assets | Total |
Net carrying amount at 1 January 2024 | 110.3 | 1,495.2 | 32.4 | 78.7 | 31.5 | 1,748.1 |
Acquisition of subsidiaries | 0.2 | 47.4 | 47.6 | |||
Investments | 0.7 | 6.9 | 96.4 | 1.8 | 105.8 | |
Own work capitalised | 1.5 | 1.5 | ||||
Reclassifications | – 0.6 | 47.7 | 6.9 | – 57.0 | – 3.0 | |
Reclassified to “Assets held for sale” | – 0.1 | – 0.1 | ||||
Disposals | – 4.0 | – 1.1 | – 0.5 | – 5.6 | ||
Depreciation | – 2.4 | – 88.4 | – 6.5 | – 5.2 | – 102.5 | |
Impairment | – 0.5 | – 0.3 | – 0.8 | |||
Currency translation differences | 0.1 | 1.2 | 1.8 | 0.2 | 0.2 | 3.5 |
Net carrying amount at 31 December 2024 | 107.6 | 1,451.9 | 41.5 | 165.7 | 27.8 | 1,794.5 |
Of which, cost value | 170.2 | 4,754.1 | 88.6 | 182.8 | 65.7 | 5,261.4 |
Of which, accumulated depreciation | – 62.5 | – 3,302.3 | – 47.1 | – 17.1 | – 37.9 | – 3,466.9 |
1Includes transmission assets, machinery, equipment and vehicles as well as decommissioning, restoration and maintenance costs
In 2024, investments categorised as “Others” amounted to CHF 6.9 million, reflecting the revaluation of an existing decommissioning provision in Italy. In 2023, investments in this category amounted to CHF 13.4 million, including a CHF 4.6 million increase in decommissioning provisions and a CHF 8.8 million revaluation of an existing provision. These transactions were non-cash effective.
CHF million | Land and buildings | Power plants | Others 1 | Assets under construction and prepayments | Right-of-use assets | Total |
Net carrying amount at 1 January 2023 | 110.8 | 1,525.2 | 21.8 | 88.2 | 36.4 | 1,782.4 |
Investments | 13.4 | 66.1 | 3.7 | 83.2 | ||
Own work capitalised | 1.7 | 1.7 | ||||
Reclassifications | 2.3 | 69.6 | 0.9 | – 72.2 | 0.6 | |
Reclassified to “Assets held for sale” | – 2.8 | – 0.7 | – 3.5 | |||
Disposals | – 0.4 | – 0.4 | ||||
Depreciation | – 2.3 | – 87.9 | – 3.7 | – 5.9 | – 99.8 | |
Currency translation differences | – 0.5 | – 11.7 | – 2.3 | – 1.6 | – 16.1 | |
Net carrying amount at 31 December 2023 | 110.3 | 1,495.2 | 32.4 | 78.7 | 31.5 | 1,748.1 |
Of which, cost value | 176.4 | 4,755.2 | 75.3 | 95.5 | 64.6 | 5,167.0 |
Of which, accumulated depreciation | – 66.1 | – 3,260.0 | – 42.9 | – 16.8 | – 33.1 | – 3,418.9 |
1Includes transmission assets, machinery, equipment and vehicles as well as decommissioning, restoration and maintenance costs
Leases
Alpiq is lessee in various contracts particularly in connection with power plants, land, building and IT infrastructure rentals. These leases are concluded for a fixed term of one month to 20 years and may contain renewal or termination options. The table below shows the change in net carrying amounts of the right of use assets capitalised in the balance sheet line item “Property, plant and equipment”:
CHF million | Rights of use buildings | Rights of use power plants | Rights of use others | Total |
Net carrying amount at 1 January 2024 | 15.6 | 15.4 | 0.5 | 31.5 |
Investments | 1.7 | 0.1 | 1.8 | |
Divestments / early termination | – 0.5 | – 0.5 | ||
Depreciation | – 2.7 | – 2.2 | – 0.3 | – 5.2 |
Currency translation differences | 0.4 | – 0.1 | 0.2 | |
Net carrying amount at 31 December 2024 | 14.5 | 13.1 | 0.3 | 27.8 |
Of which, cost value | 27.2 | 33.5 | 5.0 | 65.7 |
Of which, accumulated depreciation | – 12.7 | – 20.4 | – 4.8 | – 37.9 |
CHF million | Rights of use buildings | Rights of use power plants | Rights of use others | Total |
Net carrying amount at 1 January 2023 | 17.0 | 18.2 | 1.2 | 36.4 |
Investments | 3.5 | 0.2 | 3.7 | |
Divestments / early termination | – 0.4 |
| – 0.4 | |
Reclassified to “Assets held for sale” | – 0.7 | – 0.7 | ||
Depreciation | – 2.8 | – 2.3 | – 0.8 | – 5.9 |
Currency translation differences | – 1.1 | – 0.5 |
| – 1.6 |
Net carrying amount at 31 December 2023 | 15.6 | 15.4 | 0.5 | 31.5 |
Of which, cost value | 27.1 | 33.0 | 4.5 | 64.6 |
Of which, accumulated depreciation | – 11.5 | – 17.6 | – 4.0 | – 33.1 |
The change in carrying amounts of the lease liabilities included under financial liabilities can be seen in note 3.3.
Contractual obligations
At the reporting date, the Group had contractual commitments of CHF 59.1 million (previous year: CHF 78 million) for the construction and acquisition of property, plant and equipment.
Pledged assets
The power plants of En Plus S.r.l., Milan/IT, Enpower 3 S.r.l., Milan/IT and Società Agricola Solar Farm 4 S.r.l., Milan/IT, are funded through common project financing arrangements with banks. The related liabilities are reported on the consolidated balance sheet. The Alpiq Group has pledged CHF 105.5 million of its interest in these power plants to the financing banks as collateral (previous year: CHF 118.3 million). In addition, Alpiq has pledged all its shares in the associate Tormoseröd Vindpark AB, Karlstad, SE, of CHF 4.6 million in the context of project financing for the construction of a wind farm in Sweden (CHF 3.5 million). For information about pledged cash and cash equivalents, see note 4.6.
Accounting policies
Property, plant and equipment is stated at cost, net of accumulated depreciation and any impairment losses. Obligations to restore land and sites after licence expiry or decommissioning are accounted for individually in accordance with the contract terms.
Depreciation is applied to property, plant and equipment on a straight-line basis over their estimated useful lives, or to the expiry date of power plant licences. Assets under construction and prepayments are not subject to depreciation until they are completed or in working condition and have been reclassified to the corresponding asset category. The estimated useful lives of the various classes of assets is as follows:
- Power plants: 20 – 80 years
- Transmission assets: 15 – 40 years
- Buildings: 20 – 60 years
- Machinery, equipment and vehicles: 3 – 20 years
- Land: only in case of impairment
- Assets under construction and prepayments: if impairment is already evident
The residual value and useful life of an asset are reviewed regularly, but at least at each financial year end, and adjusted where required. At every reporting date, an analysis is performed to determine whether there is any indication that items of property, plant and equipment are impaired.
The calculation of the useful life, residual value and recoverable amount involves estimates. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs of disposal and its value in use. If an asset does not generate cash inflows that are independent of those from other assets, the recoverable amount of the individual asset is estimated for the cash-generating unit to which the asset belongs. Value in use is calculated by discounting the estimated future cash flows based on budget figures approved by management, business assumptions and other relevant factors. These assumptions are based on historical empirical data and current market expectations, and therefore contain significant estimation uncertainties. These assumptions relate largely to wholesale prices on European forward markets and forecasts of medium-term and long-term energy prices, foreign currencies (in particular EUR/CHF and EUR/USD exchange rates), inflation rates, discount rates, regulatory conditions and investment activities relating to the company. The estimates made are reviewed periodically using external market data and analyses. To calculate the terminal values, the cash flows were extrapolated by a growth rate of 2.0% (previous year: 2.0%). This growth rate corresponds to the long-term average growth that Alpiq expects and represents a forecast. The discount rates applied reflect the current market estimate for the specific risks to be allocated to the assets and represent a best estimate. Actual results may differ from these estimates, assumptions and forecasts, resulting in significant adjustments in subsequent periods.