4 Impairment losses and provisions

1 ^st half-year 2021: Allocation of impairment losses and provisions

Impairment losses of CHF 6 million had to be recognised on the Spanish gas-fired combined-cycle power plant Plana del Vent in the Generation International business division due to delivery delays at the manufacturer in connection with additional repairs, resulting in an extended downtime until December 2021, as well as earnings prospects. Other than that, no impairment losses had to be recognised on power plants thanks to the positive development of electricity prices.

The provision for the onerous contract relating to the future procurement of energy from the Nant de Drance pumped storage power plant was reduced by CHF 7 million, primarily on account of the development of electricity prices. Higher market prices also meant that the Group could reverse the existing provision for an onerous contract abroad of CHF 8 million in full. Information about discontinued operations can be found in note 10.

1 ^st half-year 2020: Allocation of impairment losses and provisions

Impairment losses totalling CHF 4 million had to be recognised on two Italian solar plants in the Generation International business division, the income of which partly depends on market prices. Other than that, no impairment losses had to be recognised on power plants, in particular due to the existing price hedges or because their income is not dependent on short-term market prices.

The provision for the onerous contract relating to the future procurement of energy from the Nant de Drance pumped storage power plant had to be increased by CHF 66 million because of less volatility in the hourly profile, lower short-term market prices, the lower CHF / EUR exchange rate and the fact that the full industrial commissioning of the power plant is now expected at the end of December 2021 and not as previously assumed at the end of September 2021. Lower market prices also meant that the Group had to increase a provision for an onerous contract outside Switzerland by CHF 11 million. Information about discontinued operations can be found in note 10.