Axpo to quadruple long-term renewable energy supply contracts by 2030

Oil&Gas Materials 11 December 2020 10:46 (UTC +04:00)
Axpo to quadruple long-term renewable energy supply contracts by 2030

BAKU, Azerbaijan, Dec.11

By Leman Zeynalova – Trend:

Axpo company, based in Switzerland, plans to quadruple long-term renewable energy supply contracts by 2030, Trend reports citing the company.

“The first steps have been taken in further developing strategy. Going forward, it will focus on three pillars: in Switzerland, on its leading role in the transition to a CO2-free energy future; internationally, on its customer and trading business and the expansion of renewable energy, with battery storage and hydrogen playing a more important role in the future alongside hydro power, wind and solar energy. In photovoltaics, for example, Axpo has set itself the ambition of increasing installed capacity by 10 GW by 2030 – 20 times more than today. The ambition for wind power is 3 GW of additional capacity. And the volume of long-term renewable energy supply contracts (PPAs) is to be quadrupled by 2030. In order to obtain additional funds for this growth, a high level of cost efficiency is central. Targeted divestments are also being examined,” the company’s updated report reads.

The Axpo subsidiary Centralschweizerische Kraftwerke AG (CKW) achieved a good result. EBIT amounted to CHF 124 million. Adjusted for special effects, this line item rose from CHF 87 million to CHF 133 million. Growth in the solar technology business field was again strong in the past financial year and was well above the market average. On average, CKW connects a new solar plant to the grid every day. Solar contracting – the construction and operation of solar plants at customer premises – was also expanded very successfully within a short period of time. CKW is already one of the leading providers of solar energy in Switzerland and is expected to further strengthen this position for the Axpo Group.

The COVID-19 pandemic continues to cause uncertainty, dampening economic performance and with it energy demand and investment activity. Any negative effects of the pandemic on the financial markets and on electricity prices over the medium term could have a negative impact on Axpo’s results in the future. Axpo is therefore expecting a lower result for the 2020/21 financial year. In this uncertain environment, Axpo is concentrating on minimising the economic risks in its Swiss business and on exploiting the opportunities presented by the changing energy market by further expanding its renewable energy activities and international customer and trading business.


Follow the author on Twitter: @Lyaman_Zeyn