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 maintains reliability and upgrades the technical capabilities of its assets, not only to comply with the latest environmental regulations, but also to use the best available technology to increase fuel efficiency and flexibility, and to prevent operational failures that could negatively impact security of supply and significantly affect its economic position.
Alpiq recognises that, in certain situations, the objectives of contributing to a better climate and ensuring security of supply – particularly regarding electricity generation from fossil fuels – may need to be carefully balanced. Without an increase in flexibility, the integration of additional intermittent renewable energy is restricted, and the energy transition is delayed. Alpiq is fully committed to supporting the energy transition. Through investments in BESS, flexible hydropower, and highly flexible gas-fired thermal assets, the company enhances the flexibility of the energy system and actively contributes to the energy transition. Alpiq therefore deliberately focuses on providing flexibility to the energy system and assesses its activities and investments not only based on their direct climate impact, but on their overall impact on the energy system.
Gas-fired generation is expected to remain a key source of flexibility for at least the next 10 to 15 years. Alpiq is dedicated to operating its gas-fired assets throughout their technical lifetime, with a strong focus on continuous upgrades, ongoing maintenance, and the integration of the best available technologies. By doing so, the company ensures high availability and delivers reliable flexibility services to the energy system.
In 2025, Alpiq introduced the Sustainable Flexibility KPI to tackle a key energy-transition challenge: balancing carbon efficiency with system flexibility. Built on a transparent and data-driven methodology, the KPI offers a technology-neutral, country-specific framework that supports both retrospective analysis and scenario planning. The KPI rests on two equally weighted pillars: flexibility – how well the energy portfolio adapts to changing system needs – and carbon efficiency – the carbon intensity of operations. Giving both dimensions equal importance helps ensure that climate impact and energy security progress together. This KPI is currently being used internally for assessments of Alpiq’s current asset portfolio, as well as for new investments.
In addition, Alpiq continuously works on maintaining high-standard crisis management and business continuity plans. In 2025, 191 employees were trained on business continuity plans and 36 continuity plans were drawn up. In addition, 12 crisis management exercises were conducted and 129 people were trained in this area.
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 for all assets, regardless of generation technology, are carefully planned to ensure optimal timing and minimal duration. In case of outages, internal processes and competent technical staff are in place to remedy the situation. To achieve the highest availability values, Alpiq not only focuses 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 ensure complete transparency. One such event is the prolonged production outage of the Gösgen nuclear power plant (KKG) from the end of June 2025 to February 2026. Although this results in a shortfall in electrical production, Alpiq shared updates in August 2025. In terms of security of supply, plant shareholders, including Alpiq, must procure electricity on the market under the prevailing conditions, thereby compensating for the “missing” electricity. Nevertheless, the condition of the plant remains very good and KKG AG is ensuring scientific and technical compliance with the latest standards, in alignment with the supervisory authority’s adjusted requirements.
The levels of security of supply and grid safety are typically set by the TSOs and/or local regulations for grid support services (CSS). Where technically possible, Alpiq provides certified products for CSS at each flexible asset. To be allowed to participate in the CSS market, the technical capability of each individual asset is accredited and regularly tested by TSOs in accordance with local requirements for each CSS product.
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 consecutive year. Alpiq bid successfully and contributed 103 GWh to that year’s winter reserve, out of the total Swiss reserve of 250 GWh, which had to be made available from early February to mid-May 2025. This was the last winter for which the reserve was put out to tender. From 1 January 2026 (winter 2025/2026), it is a legal requirement for Swiss electricity providers with a hydro storage capacity greater than 10 GWh to contribute to winter reserves. The Electricity Commission publishes reserve quantities and remuneration on a yearly basis, for 2025/2026, this amounted to EUR 16.11 million for 250 GWh, or EUR 64.44/MWh.