Shaping the future with flexibility

Dear reader,

We look ahead with confidence and a clear strategic direction. Alpiq is firmly focused on the future: together for a better climate and an improved security of supply. Our sharpened strategy provides this orientation. It strengthens our core capabilities, clarifies our priorities and enables us to meet our ambition to become one of the leading providers of flexibility – an increasingly indispensable pillar of the energy system.

As renewable capacity continues to grow, so does the need for assets and energy solutions that stabilise the system, bridge fluctuations and ensure electricity is available precisely when needed. With this in mind, we are preparing Alpiq not only to respond to today’s conditions, but to actively shape the energy landscape of tomorrow.

This forward-looking focus is reflected in the strategic steps we have taken over the past year. We expanded our portfolio of battery energy storage systems (BESS) with new projects in Finland and France, as well as a pipeline in Germany, strengthening our ability to provide rapid flexibility and support grid stability. We invested in modernising our hydropower and gas-fired power plants, advanced key refurbishment initiatives and continued to expand pumped-storage solutions to ensure our asset base remains robust and reliable in a dynamic market. Together, these measures underline our ambition to make a substantial contribution to the European energy transition while upholding security of supply.

At the same time, we are strengthening our presence in both core and new markets in Europe. We offer structured energy products, innovative flexibility solutions such as BESS and demand-side management, power purchase agreements (PPAs), and digital customer platforms. Our trading activities form a vital link between our flexible assets and our customers, maximising portfolio value and supporting the energy needs of a transforming Europe. Through these targeted measures, we reaffirm our commitment to supporting the energy transition and helping our customers secure reliable and sustainable energy for the future.

This long-term perspective is essential because the energy landscape is undergoing structural change at a remarkable pace. European markets continue to be shaped by geopolitical uncertainty, subdued economic activity and the ongoing expansion of solar and wind generation. Periods of oversupply – driven primarily by strong solar generation during the summer months – are pushing electricity prices down but is keeping volatility high and hourly price profiles are not expected to flatten any time soon. These developments create opportunities and risks alike and necessitate an agile approach to value creation.

Such dynamics test traditional business models and require robust risk management, technological expertise and organisational agility. The growing share of intermittent production makes reliable flexibility indispensable. Alpiq’s strong heritage in hydropower – combined with our expanding position in storage, system services and cross-market optimisation – positions us to support system stability in Switzerland and across Europe. We have also strengthened our organisational foundation to ensure we can deliver on our strategic priorities with even greater clarity and effectiveness. The transition to our value chain-oriented operating model – comprising Assets, Trading and Energy Solutions (formerly ‘Origination’) – has sharpened responsibilities, improved collaboration and accelerated decision-making, while supporting a more integrated approach to value creation. At the same time, we have further reinforced our risk management framework, incorporating lessons learned in recent years to ensure prudent exposure, disciplined hedging and strong financial resilience in an increasingly unpredictable environment.

It is against this backdrop that we assess this year’s performance. The result reflects the realities of a challenging market environment and therefore represents a robust performance. We continue to place our emphasis where it belongs: on the clear and tangible progress we are making in implementing our strategy, and on the structural steps we have taken to prepare Alpiq for its long-term role in the European energy transition. We are equipping Alpiq to create sustainable value and to build the resilient, future-ready company our stakeholders expect.

Finally, we would like to express our sincere appreciation and thanks to our customers, partners and employees across all our locations. You truly make Alpiq a great place to work. We look forward to enjoying another inspirational and successful year with you in 2026.

26 February 2026