Security of Supply

Security of supply is an entity-specific topic that is not covered by ESRS but is material to Alpiq and is therefore included in this Sustainability Report.

Alpiq uses the definition of security of supply as provided by the European Environment Agency (EEA). The EEA defines security of supply as “the availability of energy at all times in various forms, in sufficient quantities, and at reasonable and/or affordable prices” (EEA, 2024).

Alpiq’s contribution to ensuring security of supply is stated in its company purpose. Providing reliable power or heat generation when needed by customers, including TSOs, has a direct impact on the company’s economic results. It is therefore of the utmost importance that Alpiq continuously maintain the reliability and upgrade the technical capabilities of its assets, not only to comply with the latest environmental regulations, but also to make use of the best technology available for increasing the fuel efficiency and flexibility, and to prevent any operational failures that could negatively impact security of supply and significantly affect its economic position.

Alpiq recognises that in some situations a conflict may arise between the responsibilities of contributing to both a better climate and security of supply, especially in the case of electricity generation from fossil fuels. However, Alpiq is fully supportive of the energy transition and by investing in battery energy storage systems (BESS), flexible hydro power, and highly flexible gas-fired thermal assets, the company contributes to the energy transition by providing flexibility to the energy system. Without an increase in flexibility, the integration of additional variable renewable energy is restricted, and the energy transition is not possible. Alpiq therefore chooses deliberately to focus on providing flexibility to the energy system and to assess its activities and investments not based on their direct climate impact, but on their overall impact on the energy system.

Gas-fired generation is expected to remain an important source of flexibility for at least the coming 10 to 15 years, and Alpiq intends to continue operating its existing gas-fired assets until the end of their technical lifetime. Alpiq is also open to expanding its flexible gas-fired generation portfolio, provided newly added assets contribute significantly to system flexibility. To summarise, it is additional flexibility that allows for the further expansion of intermittent renewable energy generation while ensuring security of supply at all times.

Apart from contributing to security of supply by providing flexibility, Alpiq continuously works on maintaining high-quality crisis management and business continuity plans. In 2024, ten percent of the company’s workforce was trained in crisis management by participating in sophisticated exercises, and more than 35 continuity plans were drawn up and tested to secure critical activities.

In-market availability, the KPI measuring the percentage of time that an asset is available when needed, is reported to all internal stakeholders and is closely monitored and assessed. Maintenance periods are carefully planned in advance to ensure optimal timing and minimal duration. In case of outages, internal processes and competent technical staff are in place to remedy the situation. In order to reach the highest availability values, Alpiq does not only focus on technical and economic indicators but also applies high health and safety standards to ensure a secure environment on its premises. All outage events are reported to both internal and external stakeholders to guarantee complete transparency.

The levels of security of supply and grid safety are typically set by the TSOs and/or local regulations for grid support services (GSS). Where technically possible, Alpiq provides certified products for GSS at each flexible asset. To be allowed to participate in the GSS market, the technical ability of each individual asset is accredited and regularly tested by the TSOs according to their local requirements for each GSS product.

In order to contribute additionally to security of supply in times of high electricity demand, Alpiq participated in the Swiss Federal Council’s tender for the winter 2024/2025 hydropower reserve for the third year in a row. Alpiq bid successfully and contributed to the winter reserve 2024/2025 by providing 103 GWh out of the total Swiss reserve of 250 GWh. The winter 2024/2025 is the last winter for which the reserve was put out to tender. From winter 2025/2026, it will be a legal requirement to contribute to winter reserves.