Annual report 2008/09 - Axpo Group

Energy is the future 

Annual Report 2008 | 09 Axpo Holding AG

Axpo at a glance – profi 

0 10 20 30 40 50 60 70 

18.342 % 

18.410 % 

13.975 % 

14.026 % 

12.501 % 

12.251 % 

7.875 % 

1.747 % 

0.873 % 

le 

Axpo is a leading Swiss energy company. With its subsidiaries Axpo AG (NOK until 30 September 2009), 

Centralschweizerische Kraftwerke AG (CKW) and Elektrizitäts-Gesellschaft Laufenburg AG (EGL), Axpo 

has strong local roots and an international outlook. Electricity production, trading, sales and services are 

all grouped together under a joint holding company. 

Axpo is committed to sustainability and aims to guarantee a secure and reliable supply of energy from environmentally 

friendly sources at reasonable prices. To this end it is involved in all phases of the value chain in 

Switzerland, from electricity production, trading and transmission to electricity distribution. Its electricity 

mix comprising nuclear energy, hydropower and new energies not only makes economic sense, but is also almost 

totally carbon-neutral and therefore climate-friendly. 

Axpo has more than 4000 employees and, together with its partners, provides electricity to around 3 million 

people in Switzerland. Axpo Holding AG with its registered offi ce in Baden is wholly owned by the cantons of 

Northeastern Switzerland. 

The shareholders 

Total share capital: CHF 370 million 

in CHF million 

Canton of Zurich 

Utilities of Canton of Zurich 

Canton of Aargau 

AEW Energie AG 

SAK Holding AG 

EKT Holding AG 

Canton of Schaffhausen 

Canton of Glarus 

Canton of Zug 

Axpo and its subsidiaries 

Axpo AG 

Baden 

Share capital: 

CHF 360 million 

100 % 

Axpo delivers electricity to these areas 

Axpo via cantonal utilities 

CKW 

EGL 

Geneva 

Delémont 

Lausanne 

Basle 

Solothurn 

Neuchâtel 

Berne 

Fribourg 

Centralschweizerische 

Kraftwerke AG 

Lucerne 


CHF 3 million 

74.8 % 

Sion 

Axpo Holding AG 

Baden 



Schaffhausen 

Liestal Zurich 

Aarau 

Lucerne 

Sarnen 

Zug 

Elektrizitäts- 

Gesellschaft 

Laufenburg AG 

Laufenburg 



91 % 

Stans 

Bellinzona 

Frauenfeld 

St. Gallen 

Herisau 

Appenzell 

Schwyz 

Altdorf 

Glarus 

Axpo 

Informatik AG 

Baden 


CHF 0.1 million 

62.7 % 

Vaduz 

Chur

Key fi gures 

Finances 2008/09 

in CHF m 

Revenues 

2007/08 

in CHF m 

2006/07 

in CHF m 

2005/06 

in CHF m 

2004/05 

in CHF m 

Revenues 7 550 7 599 9 208 9 392 6 684 

of which energy sales and grid utilization 6 709 6 864 8 793 8 981 6 412 

EBIT 

Operating profi t 848 1 178 1 268 1 411 684 

as % of revenues 11.2 % 15.5 % 13.8 % 15.0 % 10.2 % 

Net profi t 

Net profi t 568 1 003 1 436 1 058 671 

as % of revenues 7.5 % 13.2 % 15.6 % 11.3 % 10.0 % 

Cash fl ow and investments 

Cash fl ow 901 1 016 1 072 748 556 

Net investments in non-current assets 

(excl. loan receivables) –510 –567 –652 –761 –815 

Free cash fl ow 391 449 420 –13 –259 

Balance sheet 

Balance sheet total 17 587 17 515 14 780 13 038 11 403 

Equity incl. minority interests 8 164 7 750 7 216 6 176 5 050 

as % of balance sheet total 46.4 % 44.2 % 48.8 % 47.4 % 44.3 % 

Employees (full-time equivalents) 

Average number of employees 4 092 3 698 3 369 3 098 2 903 

Energy statistics 

2008/09 

in m kWh Electricity Gas 

2007/08 

in m kWh 

Change from 

previous 

year in % 

Electricity Gas 

Procurement 

Nuclear power plants 22 276 22 276 22 688 22 688 –1.8 

Hydroelectric power plants 

Conventional thermal 

8 913 8 913 8 690 8 690 2.6 

power plants 6 880 6 880 5 535 5 535 24.3 

New energies 

From third-party corporations 

237 237 190 190 24.5 

and trading 22 946 1 520 24 466 28 321 1 704 30 025 –18.5 

Total 61 252 1 520 62 772 65 424 1 704 67 128 –6.5 

Sales 

Supply area 

To third-party corporations 

20 000 20 000 19 846 19 846 0.8 

and trading 40 937 1 520 42 457 44 841 1 704 46 545 –8.8 

Losses/own use 315 315 737 737 –57.2 

Total 61 252 1 520 62 772 65 424 1 704 67 128 –6.5

Milestones 2008/09 

The boards of directors 

of Axpo and KLL gave the 

green light for the construction 

of the Limmern 

pumped-storage power 

plant. A total of CHF 2.1 

billion will be invested in 

this hydropower plant, 

the largest in Switzerland. 

Axpo is fully cognizant 

of its social and political 

responsibility as an 

employer. The Group is 

training 345 apprentices 

for a future career. 

Green light for the project of the century 

The boards of directors of Axpo Holding AG and Kraftwerke Linth-Limmern 

AG (KLL) approved the largest investment in hydropower that has ever been 

made in Switzerland. For CHF 2.1 billion, Axpo, in collaboration with the 

Canton of Glarus, will expand the power plant in the Limmernsee and Muttsee 

region to a pumped-storage hydropower plant providing an additional output 

of 1000 megawatt. 

Expansion of new energies 

Axpo is improving its expertise in the conversion of green waste into energy. 

Via its subsidiary Axpo AG, it acquired a majority stake in Tegra Group, the 

largest operator of wood-fi red power plants in Switzerland, as well as in 

Genesys AG, which plans and builds biogas plants, primarily for the agricultural 

sector. 

CKW renews concessions 

CKW renewed its concession agreements, which govern its right of way on 

public property for the next 25 years, with a large number of municipalities. 

62 of 79 municipalities have already approved the renewal. At the beginning 

of September, the Competition Commission announced that it is reviewing the 

concession process, as it should be checked if a public tender is required. 

The municipalities have to wait with signing the agreement until this review 

has been fi nalized. 

EGL focuses on wind power and gas 

With its acquisition of a Swedish wind power developer, EGL obtained access 

to a number of wind power projects in Northern Europe. In Germany it acquired 

a 24.1% stake in Wetfeet Offshore Windenergy GmbH, which is planning 

to build a wind farm along the North German coast with a total capacity of 

400 megawatt. It also invested in a wind farm in Italy. In addition, EGL expanded 

its gas business by signing a number of important supply contracts. 

Applications for general licences submitted 

Together with BKW FMB Energie AG, the Axpo Group companies Axpo AG and 

Centralschweizerische Kraftwerke AG submitted the applications for general 

licences to replace the nuclear power plants at Beznau I and II and Mühleberg 

in December 2008. 

Nuclear Power Plant Beznau (NPP Beznau) celebrated its 40th anniversary with 

a large public event. Since it was commissioned in 1969, the NPP Beznau has 

been generating safe, reliable and practically carbon-neutral power that meets 

ten percent of Switzerland’s electricity needs. In this time, Axpo has invested 

approximately CHF 1.5 billion to constantly modernize its nuclear power plant. 

Axpo creates around 400 new jobs 

Axpo is fully cognizant of its social and political responsibility as an employer. 

The Group is training 345 apprentices for their future careers; this 

number is once again higher than in the previous year. Axpo is also for 

the fi rst time employing more than 4000 people. The total increase of approximately 

ten percent took place in all the Group’s divisions.

Table of contents 


Editorial 2 

Interview with the CEO 4 

The way forward 

Strategy 8 

Markets and perspectives 12 

Success factors 22 

Corporate governance 

Corporate governance 32 

Management structure 41 

Board of Directors 44 

Executive Board 47 

Annual report 2008/09 

Annual report of Axpo Group 50 

Annual report of Axpo AG Group 52 

Annual report of CKW-Group 59 

Annual report of EGL Group 62 

Annual report of Axpo Informatik AG 64 

Abridged fi nancial report 

Financial overview 68 

Glossary 70 

Power plant fl eet 72 

Overview of publications 74 

Publishing details 75 

Pro/Contra 

Renewable energies 20 

Climate protection 30 

Mobility 48 

Nuclear power 66

Annual Report Axpo Holding AG 

2 – 3 

Editorial / 2–3 

Interview with the CEO / 4–6 

Strategy / 8–10 

Markets and perspectives / 12–18 

Success factors / 22–29 

Corporate governance / 32–47 

Annual report / 50–65 

Editorial 

Large investments in supply are in 

the pipeline. Axpo needs suffi cient 

income to fi nance these plans. 

The unsatisfactory profi t 

situation makes it clear that 

the low electricity prices 

in Northeastern Switzerland 

are subsidized by foreign 

trading gains. 

Dear Readers 

Axpo can look back on a challenging 

2008/09 fi nancial year, during which it 

continued to meet its mandate to deliver 

a reliable and secure supply of energy 

at reasonable prices, despite partial 

liberalization of the market. Our 

profi t, however, dropped 43 percent 

to CHF 568 million, primarily because 

prices in the European trading business 

fell substantially, which reduced 

our income from Swiss production activities. 

Secondly, the political leadership 

ordered drastic measures to 

curb prices in the run-up to the opening 

of the Swiss market. As a result of 

the stock market slump, the fi nancial 

result was also much weaker. The unsatisfactory 

profi t situation makes it 

clear that the low electricity prices 

in Northeastern Switzerland are subsidized 

by foreign trading gains. Unfortunately 

we now have to meet additional 

costs for the maintenance of 

our power plant fl eet, and we also need 

to invest substantial sums in renovation 

and in new projects. However, we 

can only make the enormous investments 

needed to maintain the supply 

of electricity to our country when our 

earnings situation has noticeably im- 

proved. We are currently living off the 

assets that we need for the upcoming 

investment cycle. 

One of the most important tasks 

of the Swiss political leadership is to 

provide a liberal and binding framework 

for investment activities that promotes 

the interests of the Swiss people 

and economy, and also to come to a 

clear electricity transit agreement with 

the EU. Switzerland was formerly an 

important electricity hub for Europe, 

which also benefi ted the electricity 

consumers. In the past few years we 

have become increasingly dependent 

on the import agreements with France. 

In a liberalized market, we must understand 

the EU’s questioning of 

Switzerland’s electricity imports from 

France. However, in order to ensure 

security of supply and to protect our 

investments, the Swiss authorities must 

be willing to negotiate a suitable interim 

solution for the time until new 

power plants can be built in Switzerland, 

especially as Switzerland reciprocates 

by providing services with its 

reservoirs to meet peak energy demands. 

We can thus deliver electricity 

when it is in particularly short supply. 

And this will become ever more important 

in future.

Milestones in infrastructure expansion 

During the year under review, Axpo 

has made important progress with its 

ongoing major projects. At the end 

of 2008, in cooperation with the Bernebased 

company BKW FMB Energie AG, 

we submitted applications for general 

licences for two new nuclear power 

plants to replace the current nuclear 

plants at Beznau in Canton Aargau 

and Mühleberg in Canton Berne. This 

followed on negotiations with the 

new company Alpiq concerning a joint 

project, which unfortunately did not 

lead to an agreement. After a long period 

of preparation, September 2009 

saw the kick-off for the 1000 megawatt 

pumped-storage facility at Limmern 

in Canton Glarus. Over the next seven 

years, Axpo will build the largest 

hydropower project in Switzerland. 

Axpo is also implementing the 

mandate to promote new renewable 

energies, and our aim is to produce ten 

percent of our electricity from renewable 

sources by 2030, in addition to the 

contribution already made by our renewable 

large-scale hydropower facilities. 

We will invest three billion Swiss 

francs in this project. In Swit zerland 

during the past year, Axpo acquired 

a majority stake in Tegra Holz und Energie 

AG (now known as Axpo Tegra 

AG), which specializes in gener ating 

electricity from wood. In the international 

context, Axpo is focusing on wind 

power initiatives, and has already acquired 

a stake in a wind farm in Italy, 

while several projects are in the pipeline 

in Northern Europe. 

The Axpo subsidiary EGL is 

expanding its gas business and has already 

entered into several important 

supply contracts. It is also involved in 

the political and technical development 

of the Trans Adriatic Pipeline 

project as a strategic component of 

the Southern Corridor. 

Switzerland faces a historic decision 

Electricity consumption in Switzerland 

has been rising unabated since the 

1950s by two percent per year on average. 

In spite of all efforts to save 

electricity, we still expect consumption 

to grow by around one percent in the 

medium term, driven by demographic 

trends, economic growth and the substitution 

of fossil fuels with electricity. 

This is the reality confronting us. 

Axpo wants to guarantee the delivery 

of secure, low CO2 electricity to three 

million people in Switzerland, despite 

the foreseeable phasing-out of the 

nuclear power plants at Beznau and 

Mühleberg and the staged termination 

of the supply contracts with France 

from 2020. 

Axpo took the fi rst step to realizing 

this ambition by submitting the 

applications for general licences. The 

ball is now in the court of the authorities, 

politicians, economic leadership 

and consumer organizations. We will 

have to unleash our persuasive powers 

to ensure that these projects are approved 

by the Swiss electorate. If we fail 

in this task, we will face ever-worsening 

challenges: electricity shortages, dependence 

on foreign suppliers of imported 

fossil fuels and far higher 

electricity prices. 

Thank you 

Axpo owes its success in surviving this 

challenging year above all to its employees. 

On behalf of the Board of Directors, 

I would like to thank them 

sincerely for their contribution. We also 

owe many thanks to our customers for 

their loyalty, to our business partners 

for their cooperation, and to our shareholders 

for their confi dence. 

Axpo is consistently implementing 

its mandate to 

promote new energies. We 

aim to generate around 

eight to ten percent of our 

electricity from new renewable 

sources by 2030. 

We will invest three billion 

Swiss francs in this project. 

Robert Lombardini 

Chairman of the Board of Directors


4 – 5 








Interview with the CEO 

“The young people must help 

shape our energy future.” 

Information on the waste disposal 

fund of the operators of nu clear 

power plants is available 

at www.bfe.admin.ch under 

“Topics/Nuclear energy”. 

“Axpo has two strategic 

advantages: fi rstly, a large 

and fl exible power plant 

fl eet, and secondly, Axpo 

has been successfully ac tive 

in the international market 

for a number of years.” 

Axpo has to report a substantial profi t 

contraction for 2008/09. Are you satisfi 

ed with the past fi nancial year? 

Heinz Karrer: I am satisfi ed with the performance 

of our employees and the 

operating business, but I am not happy 

about the negative impact of the economic 

crisis on our fi nancial result and 

the valuation of our securities investments, 

as this noticeably reduced our 

profi t. 

What were the highlights of 

the past year? 

Axpo got off to a good start in the partially 

liberalized electricity market. 

This was enormously important, but not 

a matter of course. We also reached 

important milestones with our large 

projects, most notably the submis - 

sion of the applications for general licences 

for the replacement nuclear 

power plants at Beznau and Mühleberg 

as well as planning approval for the 

pumped-storage hydropower plant at 

Limmern, which, at almost CHF 2 billion, 

represents the largest investment 

ever made by Axpo. 

How do you assess Axpo’s position 

in the liberalized electricity market? 

Axpo cashed in on two strategic advantages. 

Firstly, we have a large and 

fl exible power plant fl eet, and secondly, 

Axpo has been successfully involved 

in the international market for a number 

of years, and by now we are active in 

approximately 20 countries. This is a 

prerequisite for survival in a completely 

liberalized market in Switzerland 

as well as in Europe. 

Has Axpo managed to acquire a large 

number of new customers? 

In Western Switzerland, where prices 

sometimes reach European levels, 

we managed to conclude a number of 

new contracts. Seen overall, the industry 

experienced only minor customer 

loss. This is mainly because 

prices in Switzerland are low compared 

to other countries, and the Electricity 

Supply Act also focuses far more strongly 

on security of supply than on the 

opening of the market. What is very important 

for us, however, is that a 

number of large customers renewed 

their contracts, and Axpo also won 

new customers in the relatively new 

energy services business fi eld. For 

example, in future we will help Coop 

to manage its electricity consumption 

and costs at all locations. 

So how would Axpo like the future 

electricity market in Switzerland to be 

organized? 

Action is required in two areas: fi rstly, 

the way in which the grid utilization 

costs are calculated. Here, we would 

like to see some “incentive regulation”, 

in other words a system that provides 

incentives to invest in the grids and 

also ensures that investments are used

effi ciently. Competitors can be compared 

and effi cient methods can be rewarded. 

Other countries in Europe 

have had good experience with such 

systems in the past. 

…and secondly? 

The second issue concerns provisions 

in the law and the ordinance that have 

little to do with the liberalized electricity 

market. These relics from the monopolistic 

era should be eliminated, 

as they neither provide incentives for 

investment nor contribute to effi ciency 

gains. 

This year the theme of the annual report 

is “Energy is the future”. What are 

the future challenges faced by the 

energy industry in Switzerland? 

I identify three main challenges: fi rstly, 

climate change and the related 

reduction in CO2 emissions, secondly, 

the careful husbanding of resources 

with the focus on “energy effi ciency”, 

and thirdly, fi nding answers to the 

question of whether there is suffi cient 

production capacity to meet our fu- 

ture electricity needs. It goes without 

saying that these three aspects are 

intimately linked. 

How? 

“CO2-free” electricity is a beacon of hope 

in the fi ght to protect our climate. It 

can reduce reliance on fossil fuels, for 

example by switching to electric cars 

or replacing oil-fi red heating systems 

with electric heat pumps. As this 

would, of course, increase electricity 

consumption, we fi nd ourselves on the 

threshold of a phase that will require 

large investments to meet future electricity 

needs and protect our climate. 

Different energy systems are in competition 

as far as the future of energy 

production is concerned. From Axpo’s 

point of view, what type of electricity 

holds the most promise for Switzerland? 

For electricity to make a positive contribution 

to the protection of our climate, 

it should be produced with the lowest 

possible CO2 emissions. Thanks to 

large-scale hydropower and nuclear energy, 

this is already the case for Switzerland. 

I believe that this will also be 

the requirement in the near and distant 

future. These two pillars of the low-CO2 

production of electricity will be increasingly 

supplemented with electricity 

from new renewable energy sources. 

In Switzerland, the share of new renewables 

in the electricity mix is negligible, 

while other countries are more advanced 

in this area. Is this assumption wrong? 

This is also related to the geographic 

and topographic features of a country. 

As an alpine country, Switzerland has 

distinct advantages in the fi eld of hydropower, 

and these have been exploited 

for a long time. A country such as Denmark 

has much potential for wind 

power, while countries with many hours 

of sunshine, such as Spain, Greece 

and Italy, are well-positioned to take advantage 

of modern solar technology. 

Critics say that Axpo could focus more 

consistently on renewables. Why 

does Axpo not simply invest in foreign 

projects? 

First, I have to emphasize that Axpo 

does in fact focus on renewable energies: 

we are the Swiss market leader 

in large-scale hydropower as well as 

new renewable energies. Until 2015 

we will invest more than three billion 

Swiss francs in large-scale hydropower, 

and in the past three years we 

have already invested half a billion 

Swiss francs in new renewable energies. 

By 2030 we will have invested 

a total of three billion Swiss francs. We 

are also involved in projects abroad, 

including wind power projects in Northern 

Europe and solar and biomass 

projects in Southern Europe. 

Heinz Karrer, CEO Axpo Holding AG 

“Low-CO2 electricity is a 

beacon of hope in the fi ght 

to protect our climate. We 

must curb the use of fossil 

fuels. As a result, electricity 

consumption will rise – 

which is why we are facing 

large investments.” 

Axpo is committed to climate 

protection: read more on this 

topic on page 30 of this annual 

report.


6 – 7 








“Axpo is the market leader 

in large-scale hydropower 

and new renewable energies. 

Until 2015 we will invest 

more than three billion 

Swiss francs in the former, 

and since 2006 we have 

invested half a billion Swiss 

francs in the latter.” 

More information on Axpo’s 

commitment to sustainability 

can be found at www.axpo.ch 

under “Responsibility/ 

Sustainability”. 

“We base our decisions on 

the three dimensions of 

sustainability, i.e. economic, 

ecological and social sustainability, 

and try to fi nd a 

balance between these 

dimensions.” 

Axpo is committed to the replacement 

of the nuclear power plants at Beznau 

and Mühleberg, although critics describe 

nuclear power as an outdated technology. 

Why does Axpo believe that nuclear 

power holds promise for the future? 

Following this argument one would 

have to say that wind power technology 

and hydropower technology are 

even older. The decisive factor, however, 

is what options we have in this century 

to cover the growing electricity 

needs of our society without harming 

our climate. This goal cannot be met 

with renewable energies alone and, 

compared to coal, gas or oil plants, nuclear 

energy has undeniable advantages 

as regards the CO2 balance sheet 

and the costs. Intensive research is 

also being carried out in the fi eld of nuclear 

energy, which has great techni - 

cal potential: reactors needing less fuel, 

fuel recycling, reducing the lifespan 

of nuclear waste. Nuclear energy is a 

young technology with a promising 

future. 

But would it not be easiest for Switzerland 

to meet its additional electricity 

needs with imports? What is your opinion 

about this? 

I have two very important objections 

to this approach: fi rstly, we have limited 

grid capacity and cannot simply 

import as much electricity as we like. 

And secondly, everything has its price! 

This is exemplifi ed by Italy, which is to 

a large extent dependent on imports 

and therefore has the highest electricity 

prices in Europe. It is easy to imagine 

the consequences for our economy 

if Switzerland were to choose the same 

approach. 

The electricity sector is currently taking 

decisions that will affect future generations. 

How is Axpo dealing with this responsibility? 

By being aware of our responsibility 

and basing our decisions on the three 

dimensions of sustainability: economic, 

ecological and social sustainability. 

We try to fi nd a balance between these 

three dimensions. Axpo also gives feedback 

on its successes and failures in 

this regard. It is very important to us 

to be transparent about what we do 

and what we refrain from doing. Society 

should be able to follow and assess 

our ac tivities. 

The young people of today are the 

engineers and researchers of tomorrow. 

What hopes do you pin on the future 

generation as far as fi nding solutions to 

our energy problems is concerned? 

As an optimist I am convinced that the 

future generation can and will solve 

these challenges, but as a realist I suspect 

that solutions will only come at 

an economic as well as a social price. 

What message does Axpo’s CEO have 

for the young people of today? 

Three things are important to me: belief 

in the future, willingness to accept 

responsibility – social, political as well 

as personal responsibility – and, last but 

not least, willingness to achieve. 

These things will be needed to solve the 

problems of today and tomorrow, particularly 

now when our energy future 

is so important. I would like to motivate 

the young people to help shape this 

future. 

And what does the CEO wish for the 

future of his company? 

For the future of Axpo I wish for satisfi 

ed customers. And to make this 

dream a reality, I wish for committed 

employees who love their jobs.

“Energy is dreaming.” 

Flavia Mazzu, 28, is a hairstylist at Move with Style Academy and is planning 

a trip around the world.


8 – 9 








Strategy 

Security of supply is a top 

priority for Axpo. 

Axpo is the leading electricity supplier in Switzerland, 

covering the entire electricity value chain from production 

to the socket. Axpo ensures its international competitiveness 

by making the most of the opportunities in 

the European energy trade. Axpo’s corporate policy is 

based on the principles of sustainability – economic, ecological 

and social aspects are all given equal consideration.

As a company owned by the cantons 

of Northeastern Switzerland, Axpo undertakes 

to honour its supply obligations 

in full. The guiding principle must 

be the ability to provide customers 

with the electricity they need at all 

times and at reasonable prices. 

The Swiss market – 

emphasis on security of supply 

Given the fact that electricity consumption 

is constantly rising while production 

capacity is decreasing, Switzerland 

is threatened with the possibility of 

a power supply shortage by 2020. In order 

to combat this, Axpo is investing 

both in energy effi ciency measures and 

in the expansion and replacement of 

its power plant capacities. Together with 

BKW, Axpo advocates the replacement of 

Switzerland’s fi rst nuclear power plants. 

It will invest around CHF 3 billion in 

new energies by 2030 and increase energy 

production from large-scale hydropower 

by 2020 by optimizing and expanding 

its hydraulic systems. This 

will increase the output from large-scale 

hydropower by approximately 1500 

megawatts. From 2020, the construction 

of new power plants and grids will be 

urgently needed to ensure the security 

of supply. Landmark decisions are 

needed. Axpo is committed to a wideranging, 

objective dialogue on the 

future of energy. 

Axpo will actively exploit the 

opportunities offered by the liberalization 

of the electricity market and further 

expand its position as Switzerland’s 

leading electricity supplier. Axpo AG 

and Centralschweizerische Kraftwerke 

AG (CKW) are managing their longstanding 

supply areas in Northeastern 

and Central Switzerland together with 

their partners, while Axpo Suisse AG 

offers products and services to the 

remaining market regions of Switzerland. 

Electricity procurement and 

sales are further optimized by the trading 

activities of Axpo AG and CKW. 

Production surpluses are sold at a profit, 

and Axpo ensures that adequate 

capacity reserves are available for times 

of peak demand. 

To ensure security of supply, 

suffi cient and freely accessible grid capacity 

must be available at all times. 

Axpo therefore supports the expansion 

of the transmission and distribution 

grids and advocates a strong, independent 

position for the national grid company 

Swissgrid. This also promotes the 

objective of achieving discriminationfree 

access to Europe. 

The European market – 

international energy trade 

Axpo positions itself, via its subsidiary 

Elektrizitäts-Gesellschaft Laufenburg 

AG (EGL), as a pan-European energy trader 

with its own power plants and its 

own transport infrastructure. It is committed 

to trading on its own account, 

operating power plants, and fulfi lling 

physical and fi nancial energy contracts 

to the benefi t of its customers. 

Until 2025, Axpo will build up a diversifi 

ed infrastructure and contract 

portfolio in selected key markets. 

This also includes investing in renewable 

energies. In this way, Axpo fi nds 

the right balance between its own-account 

trading and asset trading activities. 

It also actively exploits the synergies 

that arise from the interlinking 

of national markets and from trade in 

related products (electricity, gas, 

certifi cates). 

Vision 

Reliable: Axpo is a Swiss energy company 

that is synonymous with security, quality 

and long-term planning. Axpo has local 

roots and a sound international base. 

Sustainable: Axpo shapes its actions to 

meet ecological, social and economic objectives. 

Axpo respects people and the 

environment. Long-term profi tability secures 

freedom of action and competitiveness. 

Swiss supply market share 

in % 

16 % 

14 % 

11 % 

Axpo 

Alpiq 

BKW 

Swisspower 

Other 

25 % 

34 % 

The “Electricity Prospects” 

study can be found at 

www.axpo.ch under 

“Knowledge/Energy gap”. 

Innovative: Axpo’s reasoning and actions 

are shaped by an ongoing search for solutions 

to the energy needs of its customers. 

To meet this mandate, Axpo develops 

appropriate products and services.


10 – 11 








Through its subsidiary EGL, 

Axpo is consolidating its 

position as a pan-European 

energy trader. This is 

founded on investments in 

conventional power plant 

capacities and new renewable 

energies as well as 

the expansion of its trading 

and gas business. 

Presence in Europe 

Status in 2009 

Madrid 

London 

Genoa 

Oslo 

Malmö 

Leipzig 

Milan 

Rome 

In recent years, Axpo has successfully 

expanded its gas trading business. 

Against the background of a long-term 

increase in the demand for gas, 

dwindling domestic production within 

Europe, a growing demand for additional 

infrastructure (pipelines and reservoirs), 

and efforts to reduce CO2 

emissions, Axpo is seeking to expand 

and diversify its procurement and 

import portfolio and is also expanding 

its liquefi ed natural gas (LNG) business. 

The Trans Adriatic Pipeline (TAP) 

is set to open up the corridor for 

bringing gas from the area around the 

Caspian Sea and the Middle East into 

Europe. 

Vienna 

Warsaw 

Prague 

Pristina 

Tirana 

Helsinki 

Bratislava 

Budapest 

Belgrade 

Sofia 

Skopje 

Athens 

Bucharest 

Istanbul

“Energy is there 

to make our lives easier.” 

Mascha Wessely, 25, and Jaro Sigmund, 32, have been together for six years. 

Last year the couple had a daughter, Lou Josephine, and they are looking forward to 

adding to their family.


12 – 13 








Markets and perspectives 

Regulation gives birth 

to uncertainties. 

The price increases caused by the partial liberalization 

of the electricity market were curbed in the short term 

by politicians and the regulatory authorities, but infl ationary 

taxes and profi t reduction measures were announced 

almost simultaneously. This limits market 

players’ scope for investing in the long-term security of 

supply. Axpo supports reliable framework conditions 

and incentive mechanisms that take account of market 

forces.

Energy policy 

Uncertain trends in 

framework conditions 

In March 2009, the Federal Electricity 

Commission ElCom ordered an average 

reduction in the chargeable costs of 

the transmission grid of 40%, based on 

the Electricity Supply Ordinance, which 

was amended by the Federal Council 

at short notice. The deciding factor for 

this reduction of approx. CHF 425 million 

was the stricter regulation of 

grid valuation and the capital earnings 

rate pursuant to the amended ordinance, 

and the passing on of some of 

the system service costs to the power 

plant operators. Because of the associated 

losses, Swissgrid and several 

transmission grid owners, including 

EGL, lodged an appeal against the 

ElCom ordinance with the Federal Administrative 

Court. Some important 

questions regarding the correct valuation 

of the grids still need to be clarifi 

ed before any judgements are issued 

in these appeal proceedings. 

Following the intervention by 

the Federal Council and ElCom, the 

price debate has settled down a little 

at national level. Regionally, the liberalization 

of the electricity market is 

still controversial and hotly discussed. 

In Canton Lucerne, a campaign committee 

is resisting the renewal of the 

concession agreements with CKW, demanding 

that the canton exercises 

more infl uence on electricity supply. 

As a result, the cantons are also applying 

more pressure for an early revision 

of the Electricity Supply Act. The Federal 

Council has already announced 

that it intends to investigate the introduction 

of ex ante or incentive regulation 

in this context, as well as tighter 

sanction powers for ElCom. 

Politicians set to impose additional 

electricity price burdens 

Despite heated public reaction to the 

electricity price increases, policymakers 

and authorities have been involved 

in several deals that will lead 

to an increase in electricity prices. Although 

the surcharge to fi nance the 

cost-covering subsidies for feed-in to 

the electricity grid will remain 0.45 

cents per kWh in 2010, the system for 

the promotion of renewable energies 

will be revised. Due to the unexpectedly 

large number of applications, the 

Swiss Federal Offi ce of Energy announced 

at the beginning of February 

2009 that the available grants had 

already been exhausted and that grants 

would be stopped for all technologies. 

In this situation, demands for solutions 

are being made from all sides, particularly 

for a more fl exible allocation 

of grant funding and an increase in 

grant volume and resources. 

Policymakers also view an increase 

in water rates as acceptable. The 

Council of States followed a proposal 

by its Commission for the Environment, 

Regional Planning and Energy (UREK-S) 

to adjust the compensation of infl ation 

in two stages. The water rate will therefore 

increase from CHF 80 to CHF 100 in 

2011 and then to CHF 110 in 2015. In 

2020, Parliament will again review the 

rate. An additional reservoir tax will 

not, however, be introduced. The planned 

increases are likely to raise the price 

for hydroelectricity by 0.3 to 0.45 cents 

per kWh. 

Measures to combat the adverse 

effects of hydropower will also be fi - 

nanced by an additional charge on the 

transmission grid of 0.1 cents per 

kWh. According to Parliament’s counterproposal 

to the “Living Water” 

referendum initiative, power plant operators 

will be compensated in full 

for implementing these measures. A balance 

was also found between stronger 

protection for fi sh habitats and some 

degree of fl exibility as regards resid - 

ual fl ow requirements. As the concerns 

The discussion about electricity 

prices gives rise to 

confl icting signals – on the 

one hand, the Federal 

government should regulate 

price increases, but 

on the other hand, policymakers 

are adopting measures 

that lead to an increase 

in electricity prices for end 

users. 

More on the Federal Electricity 

Commission (ElCom) at 

www.elcom.admin.ch 

The draft bill for the revision 

of the CO2 law makes 

provision for the reduction 

of domestic CO2 emissions 

by 20% until 2020, the use 

of part of the CO2 tax to 

fi nance building measures, 

and stricter thresholds for 

new vehicles.


14 – 15 








With its demand for a strategy 

for large-scale power 

plants, the Council of States 

is increasing pressure 

on the electricity industry, 

requiring it to agree on 

two sites for the replacement 

of the existing nuclear 

power plants. 

Negotiations with the EU on 

a bilateral electricity agreement 

should ensure security 

of supply for Switzerland 

and investment protection 

for Swiss companies. 

of those behind the referendum initiative 

have largely been taken into 

account, the fi sheries association has 

withdrawn the initiative. 

A new strategy for large power plants 

and nuclear energy delays 

In August 2009, the Federal Council 

announced that the draft bill for a revision 

of the CO2 law had been passed. 

Among other things, this makes provision 

for the reduction of domestic 

CO2 emissions by 20% until 2020, the use 

of part of the CO2 tax to fi nance building 

measures, and stricter thresholds 

for new vehicles. For the time being, 

compensation for gas-fi red combined 

cycle power plants is still regulated 

in a Federal Council decision that will 

remain valid until the end of 2010. 

It is a subject of political debate 

whether fossil-fuel power plants 

should be used as an interim solution 

for domestic electricity production 

until replacement nuclear power plants 

are commissioned. If the Council of 

States has anything to say about this 

issue, the matter will be resolved as 

part of a new strategy for large-scale 

power plants. On the one hand, the 

Council of States wants to close the remaining 

gap in the Federal Council’s 

four-pillar strategy, and on the other 

hand, this would increase the pres - 

sure on the electricity industry to agree 

on two sites for the replacement of 

existing nuclear power plants. 

However, delays are emerging in the 

general licence approval procedure. As 

far back as January 2009, Federal 

Councillor Leuenberger stated that the 

processing of three applications for 

general licences will place an excessive 

drain on the resources of the authorities 

involved. The time schedule might 

have to be extended until the results 

of a possible referendum are available, 

but no binding statements on this can 

be made as yet. In contrast, the implementation 

of the repository plan for 

deep geological repositories is proceeding 

as scheduled. Following the Fede - 

ral Council’s identifi cation of possible 

sites at the end of 2008, both the Swiss 

Federal Nuclear Safety Inspectorate 

ENSI and the Commission for Nuclear 

Waste Disposal KNE stated their position 

on this issue last year. Their 

reports on possible sites will be published 

at the beginning of 2010. 

Diffi cult negotiations between 

Switzerland and the EU 

The third round of negotiations between 

Switzerland and the EU on a bilateral 

electricity agreement took place during 

the past fi nancial year. However, the 

starting position changed after the EU 

approved the third energy package 

in June 2009. The EU is now demanding 

that Switzerland continue the negotiations 

on the basis of the new legislation 

and adopt Community law if a conclusion 

is reached. This would, of course, 

require the reformulation of the Swiss 

negotiation mandate. The protection of 

the long-term agreements plays a key 

role in the negotiations, as security of 

supply for Switzerland and the safeguarding 

of corporate investments must 

continue to be guaranteed.

Energy market 

The global economic crisis during the 

2008/09 fi nancial year signifi cantly 

changed the global and European energy 

markets. These changes concerned 

energy prices and the demand for electricity 

and primary energy as well as 

investments in the energy sector. 

Collapse of primary energy and 

electricity prices 

During the fi rst six months of the 

2008/09 fi nancial year, prices for crude 

oil, coal and gas at times plunged by 

around 50%. The price for CO2 emission 

rights in the European emissions trading 

system also contracted. 

Prices only began to stabilize in 

2009, albeit at a lower level than before 

the fi nancial crisis, when the fi rst 

indications that the economic crisis 

might be waning appeared in the middle 

of the year. Electricity prices did 

not fall further, and crude oil became 

more expensive again. However, there 

has been no indication of any increases 

in demand and prices on the electricity 

market to date. 

Stable demand for electricity 

in Switzerland 

Gas prices decoupled from oil and fell 

substantially, resulting, among other 

things, in a reduction in electricity generation 

costs in gas- and coal-fi red 

power plants, which in turn meant that 

prices on the electricity markets 

dropped. The main contributor to the 

lower electricity prices was shrinking 

demand. In France, Germany and Italy, 

demand shrank by 1.4%, 2.3% and 5.4% 

respectively in the fi rst quarter of the 

year under review (International Energy 

Agency IEA, 2009). This contraction 

in demand is mainly due to falling demand 

from industry, especially the 

steel sector. In Switzerland, however, 

electricity demand remained stable, 

with end consumption largely on a par 

with the previous year. A small dip 

was observed in spring, but this was 

only partially due to economic effects. 

The weather also had an impact. The 

deciding factor for the stability of 

domestic demand was the steadily growing 

demand from private households 

and the service sector. 

Negative effects on investments 

According to IEA studies, the economic 

crisis had a threefold negative effect on 

investment in the energy sector: fi rstly, 

lending policy was stricter, secondly, 

project profi tability dropped in view 

of lower energy prices, and thirdly, de- 

Electricity price trends 

EUR/MWh 

0 25 50 75 100 

0 50 100 150 200 

1.7.2008 1.10.2008 

1.1.2009 


EEX spot price 

Crude oil, gas and coal price trends 

in CHF 

1.7.2008 

1.10.2008 

API No.2 coal price for 2010 delivery (USD/tonne) 

Front-month Brent crude oil price (USD/barrel) 

TTF gas price, 2010 delivery (EUR/MWh) 

Read more about the 

demand for electricity at 

www.iea.org 

1.1.2009 1.4.2009 


1.7.2009


16 – 17 








Among other things, shrinking 

demand led to reduced 

costs for electricity generation 

in gas- and coal-fi red 

power plants, which in turn 

meant that the price on the 

electricity markets was 

lower. 

Axpo was also affected 

by the market fl uctuations. 

However, thanks to the 

stable domestic market and 

the proceeds from its foreign 

business, Axpo was 

able to hold fi rm. 

mand for investment was generally 

lower. As a result, investment projects 

that were really necessary were postponed 

or cancelled. Depending on the 

extent to which investments in the 

energy sector have been cut back, economic 

recovery will lead to an in - 

crease in energy prices. If growing demand 

is met with insuffi cient capacities, 

the security of supply will also be 

adversely affected. 

Axpo withstands the market 

fl uctuations 

Axpo and its business activities were 

also affected by the market fl uctuations 

in the 2008/09 fi nancial year. However, 

thanks to the stable domestic market, 

its domestic production portfolio and 

solid foundation in Northeastern and 

Central Switzerland, Axpo held fi rm. 

The electricity trade in Switzerland and 

Europe also helped to balance out 

fl uctuations in prices and demand. 

Reliable and climate-friendly 

power plant fl eet 

Axpo’s power plant portfolio, with its 

emphasis on domestic hydropower 

and nuclear power as well as gas-fi red 

power plants in Italy, is proving to be 

an advantage. Against the background 

of climate change and the expansion 

of renewable energies in Switzerland 

and Europe, this portfolio places Axpo 

in a strong position: thanks to its runof-river 

and nuclear power plants, it can 

provide reliable base load energy with 

low emissions and at reasonable prices. 

Axpo is also in a position to supplement 

the irregular production from renewable 

energies with its reservoir capacities. 

The EGL gas-fi red power plants 

in Italy also combine economic attractiveness 

with lower emissions than 

coal-fi red power plants, thus improving 

Italy’s CO2 balance sheet. 

This means that Axpo already 

has a power plant fl eet that ensures a 

reliable, competitive supply and can 

achieve demanding targets set by climate 

protection policies. The expan- 

sion of large-scale hydropower will further 

strengthen this position. Axpo 

has thus managed to forge ahead with 

its forward-looking investment projects 

during the reporting year, and is wellequipped 

to cope with the liberalization 

of its domestic market in Switzerland 

and to meet future challenges. 

Signifi cance of gas on the rise 

In the past fi nancial year, the signifi - 

cance of natural gas and Europe’s dependence 

on gas for its energy supply 

became clear. The term “energy solidarity” 

and the safeguarding of longterm 

gas supplies became more important 

after international confl icts 

affected gas deliveries to the EU. It 

has become apparent that a growing 

amount of electricity in Europe is 

produced from natural gas. Gas-fi red 

power plants promise to be competitive, 

and they combine short construction 

times and with low investments 

in the commissioning process. Demand 

for gas looks set to increase accordingly. 

With its commitment to 

the gas sector, the Axpo subsidiary EGL 

is focusing on this development. Gas 

is also a viable supplement to Axpo’s 

electricity business.

Electricity prospects 

In the fi nancial year 2008/09, Axpo 

made further progress with the implementation 

of the fi ndings of the “Electricity 

Prospects 2020” study. In order 

to eliminate the power supply shortage 

and ensure security of supply, Axpo is 

relying on a broad electricity mix: in 

addition to energy effi ciency, hydropower 

and the new energies, nuclear 

energy remains one of the main pillars 

of the diversifi cation strategy. 

Rising electricity consumption, 

falling production 

In the last ten years, electricity consumption 

in Switzerland increased by 

1.7 % per year on average. This trend 

is set to continue. Axpo expects consumption 

to increase by 1 to 2 % per 

year until 2010 and then between 0.5 

and 1.5 % per year, primarily as a re - 

sult of population and economic growth, 

the increased use of electrical appliances 

and the replacement of fossil fuels 

with electricity for heating and 

transport. The percentage of total energy 

consumption represented by 

electricity is likely to increase from 

the current level of 23 % to 40 % in 

2050. In the very long run, an electricity 

share of up to 60 % can be expected. 

Electricity is central to achieving improved 

energy effi ciency and is therefore 

the key energy of the future. 

While electricity consumption 

will continue to rise, the supply trend 

appears to be the opposite: production 

capacity in Switzerland will fall substantially 

over the coming years. The 

import agreements with French nuclear 

power plants will start running out 

from 2016, and it is unclear for how 

long this privileged import of electricity 

under long-term agreements will 

still be possible before border auctions 

are implemented. The operating life 

of the Beznau and Mühleberg nuclear 

power plants is also likely to end 

sometime after 2020. In its “Electricity 

Prospects 2020” study, Axpo con- 

cludes that Switzerland is in danger of 

suffering a power supply shortage 

from winter 2011/12 if there should be 

any changes to the long-term agreements 

with the French nuclear power 

plants. 

Product mix diversifi cation 

Axpo intends to sustainably close this 

power supply gap in Switzerland – 

in harmony with the economy, the environment 

and society. It is relying 

on a diversifi cation strategy that takes 

account of the following elements: 

− Energy effi ciency; 

− The development, expansion and 

optimization of hydropower; 

− The promotion of new energies; 

− The construction of new nuclear 

power plants to replace the older 

plants in Switzerland and the import 

agreements for French nuclear 

energy that will start running out 

soon. 

While electricity consumption 

in Switzerland continues 

to rise, production capacity 

will contract over the next 

few years. Switzerland could 

face a power supply shortage 

as early as the winter 

of 2011/12. 

Read more about the power 

supply shortage at 


“Knowledge/Engergy gap”. 

Security of supply 

Development of electricity production and demand in Switzerland in winter, in billion kWh 

0 10 20 30 40 50 

60 

2005 2015 

2025 

2035 

2045 

High CH demand 

Low CH demand 

Nuclear energy EDF 

Nuclear energy CH 

Fossil/thermal 

Hydroelectric power


18 – 19 








Domestic capacity is a clear 

priority for Axpo as far 

as supply to Switzerland is 

concerned. Security of 

supply cannot be guaranteed 

by imports alone. 

Questions regarding the 

future supply of electricity 

to Switzerland should be 

clarifi ed through a broad 

dialogue involving all sectors 

of society. As a company 

owned by the cantons 

of Northeastern Switzerland, 

Axpo will continue to 

play a leading role in this 

dialogue. 

Axpo is also making a great effort to 

ensure optimum energy effi ciency 

within the Group. This applies to production 

facilities and grids as well as 

to internal processes and buildings. 

Due to the higher residual fl ow 

requirements and climate change, 

which will lead to an irregular supply 

of water, hydropower output can only 

be expanded to a limited extent. Axpo 

is continually working on optimizing 

its existing plants to compensate 

for these external factors. Increasing 

output, as with the expansion of the 

Linth-Limmern power plant to create a 

pumped-storage plant, ensures that 

the growing demand for peak-load energy 

can be satisfi ed. 

Axpo has become the leading 

provider of renewable energies in 

Switzerland, thereby also diversifying 

its production mix. It will invest approximately 

CHF 3 billion in this programme 

by 2030. Axpo invests both 

abroad and in Switzerland, where it acquires 

shareholdings in the smallscale 

hydropow er and biomass sectors. 

With this strategy, it has already built 

up a strong portfolio of new renewable 

energy capacity. 

In the interests of long-term 

security of supply, Axpo intends 

to replace the nuclear power plants at 

Beznau and Mühleberg and the supply 

contracts with Electricité de France, 

which will start running out from 2016, 

with two new nuclear power plants in 

Switzerland. At the end of 2008, Axpo 

and its partners from the energy sector 

took the fi rst steps by submitting 

the relevant applications for general 

licences. Taking account of all approval 

procedures and the whole political 

process, it should take around 15 years 

before the plants are commissioned. 

Domestic capacity is a clear 

priority for Axpo as far as supply to 

Switzerland is concerned. Security 

of supply cannot be guaranteed by imports, 

as grid capacity for imports is 

limited and expensive. To this it must 

be added that in future many coun- 

tries of Europe will have to cope with 

power supply shortages. 

Dialogue with the public 

The “Electricity Prospects 2020” study 

triggered discussions on the future 

of power supply in Switzerland. It is 

well-known and the subject of much 

discussion in professional circles, the 

media and the general public. It is in 

Axpo’s interest to support the opinionforming 

process and a well-informed 

energy dialogue among the population. 

This dialogue should take place at 

all levels, among all interested groups 

and through various channels.

Bettina Baer, 19, plays in the women’s team of FC Zurich. 

Her dream is a permanent place on the national team. 

“Energy is crossing the boundaries.”

PRO: ARGUMENTS IN FAVOUR 

For future generations energy will come from the sun, 

wind, biomass and geothermal heat. New renewable 

energies are perfect energy carriers – unlimited, usable 

anywhere, free from emissions.

Renewable energies 

How we are investing in the future.

Axpo is convinced of the benefi ts of renewable energies and 

will invest three billion Swiss francs in their development by 

2030. But we need to be realistic – given their limited potential, 

new renewable energies can only play a supplementary 

role in the Swiss electricity mix for the next 50 years. 

Energy carriers are renewable if their resources 

are available in unlimited quantities. 

Some natural energies constantly 

renew themselves. Renewable energies 

include hydropower, biogas, solid biomass 

(wood), geothermal energy, wind power 

and solar energy. Today, 57 % of Switzerland’s 

electricity already comes from 

renewable energies, mainly from wellestablished 

hydropower. Power plants with 

an output of more than 10 megawatts 

are classifi ed as large-scale hydropower 

plants. Newly built power plants above 

this limit are not classifi ed as new renewable 

energies. 

In Switzerland, currently only 1 % 

of electricity is generated from such new 

renewable energies. In 2008, the Federal 

Council defi ned an ambitious objective 

in its action plans for the promotion of 

new energies and the increase of energy 

effi ciency: by 2030, about 10 % of electricity 

consumption in Switzerland 

should be covered by new renewable 

sources. 

The theoretical potential of 

new energies is limited 

Theoretical potential of new energies in 

Switzerland after 2050, not including costs 

or spatial planning considerations 

in billion kWh 

0 

1,9 

3,8 

5,9 

4,2 

5,3 

10 

17,5 

Small-scale hydropower 

Geothermal energy 

(this technology is still at the research stage) 

Biogas 

Solid biomass 

Wind 

Photovoltaics 

Source: Axpo, Stromperspektiven 2020 

20 

The Desertec vision: giant solar power plants in the North African desert 

to produce electricity for Europe. 

Electricity from the desert 

This vision is as attractive as it is scintillating: an international 

consortium is planning to use the Sahara sun as a CO2-neutral source 

of energy for Africa and Europe. Known as “Desertec”, the project 

envisages the construction of giant solar energy plants in the North 

African desert to produce more or less unlimited energy, which will 

be transported to Europe practically without loss via modern highvoltage 

direct-current transmission lines. 

Desertec plans to be in operation by 2050. It is still unclear, 

however, in what countries the plants can be erected and how the 

project, estimated at EUR 400 billion, should be fi nanced. There is 

also the matter of dependence on politically unstable countries. 

More at 

www.desertec.org 

Geothermal energy – energy from the interior of the earth 

In Switzerland, the temperature at a depth of 5000 metres is around 

200 degrees Celsius. Geothermal energy uses this ground heat, 

which is mainly produced by the radioactive decomposition of longlived 

isotopes, to generate energy. The underlying technology involves 

boring into these rock formations and setting up a water circulation 

system by means of a second bore hole. On the surface, 

the hot water and steam mixture is passed through heat exchangers 

to generate electricity and heat. 

Although the potential for geothermal electricity in Switzerland 

is enormous, the fi rst Swiss project in Basle was abandoned as the 

exploration drilling caused unexpectedly strong tremors. This shows 

that the technology is still at the research stage and that there are 

uncertainties regarding its feasibility. A second project has been in 

progress in Zurich since October 2009, involving exploratory drilling 

for the use of geothermal heat at the foot of the Uetliberg. 

How deep heat mining works – using a deep geothermal reservoir 

to generate electricity and heat. 

Illustration: Siemens

Illustration: Geopower Basel AG 

Limited domestic potential 

In any country, the potential harboured by new renewable 

energies for the supply of electricity depends on factors such 

as climate, topography and population density. Switzerland 

has traditional advantages in hydropower, while the potential 

for wind energy and solar energy is limited by their very nature. 

Biogas and solid biomass can also already be used in Switzerland. 

Theoretically, the potential for geothermal energy 

is very high, but this technology is not yet secured. A dependable 

assessment cannot be made until a pilot plant has been 

operated reliably for at least one year. 

Although the renewable energies generally have a great 

deal of appeal, the actual construction of power plants is often 

a problem – small-scale hydropower projects, for example, 

often meet with resistance from water conservation lobbies 

and fi sheries. Wood-fi red power plant projects are also sometimes 

opposed by local residents, usually because of the 

height of the chimney or concerns about smoke pollution, while 

wind power plants are often resisted by landscape protection 

lobbies, and the installation of solar panels on house roofs in 

central urban zones can also be problematic. 

Axpo is making a difference 

Axpo has been offering Axpo natural electricity (“Naturstrom”) 

for several years, in particular from large- and small-scale 

hydropower plants and from the Axpo Kompogas biogas plants. 

Axpo has also set up a green electricity fund to further promote 

its natural electricity. This fund supports innovative 

projects in the fi eld of renewable energies by contributing 

to research and development, pilot or demonstration plants 

and studies. 

Axpo is convinced of the future of renewable energies 

and supports the objectives of the Federal Council. In order to 

consolidate its market leadership in this fi eld, Axpo will invest 

CHF 3 billion by 2030 in the promotion of renewable energies 

and the associated expansion of production capacities in 

Switzerland and abroad. In Switzerland, the focus falls on the 

generation of base load energy, in particular from small-scale 

hydropower and biomass facilities, extending in the longer term 

to geothermal energy. The emphasis abroad is on wind power, 

small-scale hydropower and biomass projects. 

4 4 5 

1 2 6 

1 

3 

8 

7 

District heating grid 

Electricity grid 

1 Probe drilling at various depths 

2 Injection drilling to transfer cold water 

to lower depths 

3 Fracture in crystalline bedrock 

4 Production drilling to transfer heated 

water to the surface 

5 Heat exchangers 

6 Turbine house with generator for 

electricity production 

7 Cooling of generator cycle (water cooling) 

8 Cooled water returns to the earth 

Sediment 

Crystalline 

6000 m 

Axpo Kompogas transforms organic 

waste into energy 

Biogenic waste, whether organic matter from 

gardens or domestic and commercial kitchen 

scraps, is an excellent energy source. 

With the innovative Kompogas process, biomass 

is fermented in an anaerobic environment 

in an enclosed reactor, producing 

compost and biogas. The biogas is fed into 

packaged combined heat and power plants, 

where it is either transformed into electricity, 

fed into the natural gas grid or used as 

biofuel. 

Around 14 million kilowatt-hours (kWh) 

of electricity are produced by the Axpo 

Kompogas plants in Switzerland, and this 

fi gure is set to increase. Axpo Kompogas 

will soon be one of the leaders in the production 

of electrical energy from biomass 

in Switzerland and Europe. 

In order to consolidate its 

market leadership in new 

renewable energies, Axpo 

will invest CHF 3 billion 

by 2030 in expanding the 

relevant production capacities 


and abroad. 

Revitalization of small-scale 

hydropower plants 

Small-scale hydropower plants with an 

output ranging from a few kilowatts to 

a maximum of 10 megawatts produce 

climate-friendly electricity and have a negligible 

impact on the natural environment. 

Accordingly, electricity from small-scale 

hydropower generally meets with a high 

level of acceptance. While around 7000 

small-scale hydropower plants were in 

operation in Switzerland a hundred years 

ago, the number has since dropped to 

about 1000. Axpo is committed to the revitalization 

of disused plants in its supply 

area.

CONTRA: ARGUMENTS AGAINST 

The potential of new renewable energies is overestimated 

and the impact of the high costs is 

underestimated. They do not present a sustainable 

solution. In Switzerland in particular, their 

potential is limited by geography and climate. The 

best support programmes can do nothing to 

change this fact.


22 – 23 








Success factors 

Axpo combines an economic frame 

of mind with ecological and social 

responsibility. 

With its vision “reliable, sustainable, innovative”, Axpo 

shows that it regards sustainability as a key task. Axpo 

is convinced that it can strengthen its own position, 

minimize the risks and exploit new potential for innovation 

by making outstanding contributions to the economy, 

the environment and society. This greatly strengthens 

confi dence in the Group – not only among customers, 

but also among all stakeholders.

Sustainability 

Axpo’s central task is to ensure a reliable 

supply of electricity for its customers. 

It aims to fulfi l this task both as economically 

as possible and with the least 

possible impact on people and the environment. 

Economic and ecological 

effi ciency in the production, distribution 

and use of energy are essential 

to Axpo. Axpo is implementing measures 

to increase its own energy effi - 

ciency, and also provides support to 

customers in this area. 

Climate-friendly electricity mix 

The ecological effect of electricity generation 

is a core aspect of sustainable 

development. The operation of a power 

plant affects the environment in various 

ways. The release of CO2 and other 

greenhouse gases into the atmosphere 

takes centre stage. With the power 

plants it operates, Axpo is contributing 

to an improvement of the Swiss climate 

balance sheet, as practically no 

CO2 is emitted from electricity production 

by hydropower and nuclear 

plants. 

As well as hydropower and nuclear 

energy, the main pillars of Axpo’s 

electricity mix, the company is also 

committed to new energies. The emphasis 

here is on biomass and smallscale 

hydro power, and in future also 

geothermal energy. Axpo invests in selected 

projects and acquires shareholdings 

in appropriate companies. One 

example is Axpo Kompogas AG, which 

operates more than a dozen plants in 

Switzerland for generating power from 

organic matter. Axpo is the leading producer 

of electricity from renewable energy 

sources in Switzerland. By 2030 it 

will invest CHF 3 billion in expanding 

its production from new energies. 

Axpo analyses the ecological effects 

of its electricity production, including 

all upstream and downstream 

processes such as the construction 

and dismantling of a power plant and 

the acquisition of fuel. Such compre- 

hensive, certifi ed environmental balance 

sheets have already been produced 

by Axpo for the nuclear power plant at 

Beznau and the Axpo Kompogas plant 

at Otelfi ngen. Axpo has drawn up an ISO 

14064-certifi ed greenhouse gas inventory 

for the whole Group. Axpo is hereby 

adopting a pioneering role in Switzerland 

in the transparent publication 

of data on greenhouse gas emissions. 

Environmental products and advice 

Axpo has been offering Axpo natural 

electricity (Naturstrom) for several 

years now, in particular from large- and 

small-scale hydropower plants and 

from the Axpo Kompogas biogas plants. 

Sales of Axpo natural elec tricity have 

increased constantly in recent years. 

Axpo has also created a green electricity 

fund to further promote its natural 

electricity. This fund supports innovative 

projects in the fi eld of renewable 

energies by contributing to research and 

development, pilot or demonstration 

plants and studies. 

Climate protection and energy 

effi ciency are also important issues for 

Axpo customers. In order to help them 

develop climate protection strategies 

and implement specifi c measures, Axpo 

now offers a portfolio of special services. 

Axpo’s energy check is a tool for 

identifying potential energy savings. 

The aim of the recently-launched CO2 

service is to identify the CO2 emissions 

Axpo’s CO2 service 

Axpo customers can choose from three CO2 services: 

Identifi cation 

Axpo helps its customers to 

identify their carbon footprint, 

and customers can see where 

they are emitting most CO2. 

Reduction 

Axpo Natural Electricity sales 

(in million kWh) 

0 60 


2007/08 

2006/07 

2005/06 

Axpo helps to reduce CO2 

emissions using company- 

internal means, for example by 

increasing the energy effi ciency 

of buildings and vehicles or by 

replacing fossil fuels with CO2neutral, 

renewable fuels. 

The greenhouse gas emissions of 

various energy systems are 

shown as they relate to nuclear 

energy under “Pro/Contra 

nuclear energy”. 

97 

96 

87 

80 

With its power plant fl eet, 

Axpo contributes to the 

improvement of the Swiss 

climate balance sheet, as 

hydroelectric and nuclear 

power plants emit almost 

no CO2. 

Neutralization 

120 

Thirdly, Axpo offers its customers 

the option of neutralizing 

their remaining emissions, which 

cannot be reduced in an economically 

viable manner, with 

emission credits of the highest 

quality.


24 – 25 








Take part in the energy 

dialogue at 

www.axpo.ch/energiedialog 

The sustainability report is 

enclosed with this annual report. 

It can also be ordered from 

Axpo. An electronic version is 

available at: www.axpo.ch 

under “Media/Downloads/ 

Publications”. 

Information on “Energie Trialog 

Switzerland” can be accessed at 

www.energietrialog.ch 

of companies (carbon footprint) and to 

help them reduce and neutralize these 

emissions. 

Spadework in energy-saving 

construction 

Axpo is a pioneer in the area of sustainable 

buildings. The new Axpo AG 

building in Baden attracted considerable 

attention on completion in August 

2009. Designed for 150 employees, 

it is the fi rst offi ce building in Canton 

Aargau to comply with the extremely 

strict “Minergie-Eco” environmental 

protection standard and the SIA Ener - 

gy B effi ciency standards, which, in addition 

to a high level of energy effi - 

ciency, also demand healthy, comprehensively 

ecological building methods. 

The building achieves energy savings 

of well over 50% compared to conventional 

buildings. A further example 

is the new extension to the CKW building 

in Rathausen, the fi rst Minergie-P 

building of this size in Central Switzerland. 

Manifold social commitment 

Axpo supports and sponsors selected 

national and regional projects and 

organizations that make an important 

contribution to the development of 

society and the environment in Switzerland. 

These include sports associations, 

youth development and environmental 

protection projects, and 

charitable organizations. 

Axpo supports a wide range of projects and organizations, including: 

Sports Axpo Super League, Schweizer Sporthilfe [Foundation for Swiss 

Sports Assistance], Swiss Alpine Club (SAC), Plusport (the Swiss 

umbrella organization for sports for the disabled) 

Youth development Zurich Children’s University, Kindercity Volketswil and PSI School 

Laboratory 

Environmental protection Glacier research project of the University of Zurich 

Charitable organizations Winterhilfe Schweiz [Winter Aid Switzerland] 

Transparency and dialogue 

Axpo seeks a dialogue with all stakeholder 

groups that are important to 

its activities – the business, scientifi c 

and political sectors, shareholders, 

customers, non-governmental organizations, 

the general public and employees. 

The Group takes the expectations 

of these interest groups seriously 

and consider them in all its actions. 

In this spirit, Axpo is involved in 

“Energie Trialog”, the Swiss forum for 

a responsi ble energy policy. Under 

the “Energie Trialog” banner, representatives 

from the scientifi c, business 

and social sectors come together to 

seek solutions for a sustainable, 

competitive energy policy. 

Axpo has also established its 

own platform for dialogue with the website 

www.axpo.ch/energiedialog. 

Visitors to the website can obtain information 

on energy issues, read 

controversial opinions on energy matters 

and take part in the discussions. 

In this way Axpo can pass on information 

on its undertakings and also 

gain input from outside. 

At the end of 2007, Axpo created 

a Sustainability Advisory Board consisting 

of well-known fi gures from the 

business sector, non-governmental 

organizations, the media and the scientifi 

c community. The Board has the 

task of checking, supporting and questioning 

Axpo’s sustainability undertaking. 

Axpo regularly accounts for its 

commitment to sustainability. In 2010, 

it is publishing for the second time a 

comprehensive sustainability report to 

accompany its annual report, based 

on the internationally-recognized standards 

of the Global Reporting Initiative 

(GRI).

Jonas Rindlisbacher, 26, is a model maker and needs energy 

for the vocational matriculation exams in summer. 

“Energy is staying power.”

«Energie ist die Sonne.» 

“Energy is strength.” 

Felix Roland Liebi, Bucher, 21, arbeitet 20, has been seit einem doing Jahr Swiss als wrestling freischaffender as a hobby Steinbildhauer. 

since the age of seven. 

Mit His objective seiner Arbeit is to möchte win a garland er einmalige at a cantonal Kunstwerke Swiss schaffen. wrestling festival.

Employees 

Axpo is a reliable employer, even in 

diffi cult economic times. In the year 

under review, Axpo Group had an average 

workforce of 4092 full-time employees, 

who ensure that our customers 

have access to reliable and environmentally 

friendly power at all times. 

Their know-how and commitment are a 

prerequisite for our corporate success. 

As Axpo wants to be an attractive 

employer for its current and 

potential employees, it offers a broad 

spectrum of training and educational 

opportunities, as well as individual development 

plans for employees following 

a specialist or management career 

and a corporate culture that allows 

the employees to develop and foster 

their skills. Axpo accepts its responsibilities, 

even when the economy is 

suffering a downturn, and offers a fascinating 

working environment in an 

industry that combines a pioneering 

spirit and cutting-edge technology. 

Ongoing training and further education 

Axpo sets specifi c standards as regards 

the qualifi cation of its employees 

and managers, to which end it has 

established its own modular training 

programme. The training courses 

on offer meet with a positive response 

from employees and managers, particularly 

as these courses are reviewed 

annually and adjusted to ensure that 

the employees always have access to 

training and further education opportunities. 

Vocational training is seeing 

positive developments. Over the past 

four years Axpo has substantially 

increased the number of training positions. 

During the 2008/09 fi nancial 

year, 345 apprentices fi nished their 

apprenticeships in 22 professions 

with Axpo. By training its own young 

talents, Axpo is investing not only 

in its own competitive strength and 

future, but also discharges an important 

social and political obligation. 

Attracting and retaining 

a new generation of managers 

Axpo aims to fi ll as many as possible 

of its vacant specialist and management 

positions with internal staff. At 

the same time it wishes to offer interesting 

career opportunities to its 

employees and managers and retain 

valuable know-how for the Group. 

The management development programme 

creates the necessary conditions 

and allows Axpo to promote 

potential management candidates 

and support a systematic succession 

planning process. During the 2008/09 

fi nancial year, 30 candidates attended 

the Axpo Development Centre, thereby 

enrolling for a two-year development 

process which should prepare them to 

take on greater management or project 

management responsibility. 

As Axpo intends to successfully 

hold its ground in the fi ght for the best 

young talent, in particular university 

graduates, the Group has expanded 

its personnel and university marketing 

activities in the past few years. Opportunities 

to introduce the Group to 

students and graduates of Swiss universities 

of applied sciences and universities 

and to establish contact with them 

are systematically exploited. Axpo 

holds workshops, specialist lectures 

Apprenticeship trends 

Axpo is greatly committed to vocational training: 

in the 2008/09 fi nancial year, Axpo employed 

345 apprentices compared to 338 apprentices 

in the previous year. 

0 200 


2007/08 

2006/07 

2005/06 

345 

338 

305 

299 

400 

Axpo aims to be an attractive 

employer. The company 

offers a fascinating 

working environment in 

addition to a wide range of 

training courses, many 

development opportunities 

and a modern corporate 

culture. 

Employees of Axpo Group 

During the 2008/09 fi nancial year, Axpo successfully 

and substantially increased the numbers 

of employees at all Group companies.. 

80 

225 

746 

0 600 1200 


Axpo Informatik AG 


CKW Group 

EGL Group 

1620 

1422 

1800


28 – 29 








In the reporting year, university 

graduates in different 

degree programmes voted 

for Axpo as one of the top 

50 employers in Switzerland 

and the most attractive 

company in the industry. 

The “Swiss graduate barometer 

2008” can be accessed at 

www.trendence.de 

EGL’s derivatives trading 

business is subject to the 

banking laws and is supervised 

by the Swiss Financial 

Market Supervisory Authority 

(FINMA). 

and university events all over Switzerland. 

These efforts are bearing fruit, 

and in the reporting year, university 

graduates in different degree programmes 

voted for Axpo as one of the 

top 50 employers in Switzerland and 

the most attractive company in the 

industry. 

In the 2008/09 fi nancial year, 

Axpo Group employed a total of 15 

university graduates and 12 trainees. 

Apart from a company-specifi c induction 

programme and an individual 

training and further education programme, 

these employees are also 

given the opportunity to get to know 

another company in the Axpo Group 

during a short-term job placement or 

an internship of a maximum of fi ve 

months. With its “Engineering Student 

of the Year 2009” award, Axpo introduced 

students throughout Switzerland 

to the interesting career-launching 

opportunities offered by the Group. 

Risk management 

It is the task of Axpo’s risk management 

team to ensure risk transparency, 

manage the Group-wide risk potential 

within the guidelines defi ned by the 

Board of Directors and promote a culture 

that handles risk in a transparent 

manner. Axpo defi nes risk as all events 

that may cause the Group to exceed 

its objectives (opportunities) or fail to 

reach its objectives (threats). The following 

four risk dimensions that go 

beyond a purely fi nancial perspective 

can be derived from the mission statement 

and vision of the Group: 

1. EBIT@risk assesses the risk-related 

fi nancial deviations from established 

plans. 

2. Supply reliability@risk assesses the 

impact of risks on the secure supply 

of electricity. 

3. Environment@risk analyses the 

potential hazards to man and the 

environment. 

4. Reputation@risk studies potential 

risks to the reputation of the Group. 

Systematic risk management process 

Axpo has set up a risk management 

process to assess and analyze the risks 

at Group level and in the Group companies 

every six months. The likelihood 

of occurrence and the probable impact 

are assessed. By aggregating and validating 

these risks, the Group obtains a 

consolidated picture that allows an 

analysis of the risks at Group level. Basically, 

each Group company is responsible 

for its own risks according to 

the principle of causation and manages 

them under its own responsibility. 

The results of this risk analysis 

are compiled every six months in a risk 

report and a catalogue with measures 

that are processed by the Corporate Risk 

Council. The Corporate Risk Council 

consists of the Executive Board, representatives 

of selected Group functions 

and a representative of the Board of 

Directors. The Corporate Risk Council 

then reports to the Audit and Finance 

Committee and the Board of Directors. 

Risk situation 

in the fi nancial year 2008/09 

As regards the four risk dimensions, 

the risk situation has changed in the 

reporting year as follows: 

1. EBIT@risk 

The general risk environment has 

calmed down again. The drastic and 

abrupt economic slump at the beginning 

of 2009 was not followed by 

an unchecked nosedive as expected. 

Thanks to fast action by the central 

banks and government stimulus programmes, 

the global economy performed 

better than expected. By now 

there are growing signs that the economy 

is likely to recover gradually 

in 2010, and the forecasts issued by 

the fi nancial institutions are slightly 

friendlier. Axpo, however, is regarding 

the forces of economic recovery with 

all due caution. The main factors that

present a risk to a sustainable economic 

recovery include the possibility of 

a distinct increase in unemployment 

fi gures, the end of the government 

stimulus packages, and the high levels 

of government debt. 

After a sharp rise in 2008, wholesale 

electricity prices have stabilized 

again at a low level. The equity markets 

have started recovering at an unexpected 

pace and have almost returned 

to the levels seen at the beginning of 

2009. The regulatory situation has also 

stabilized after the fi rst measures to 

open the electricity market and the related 

grid fee system changes were 

introduced in the reporting year. However, 

Axpo will continue to be vulnerable 

to regulatory changes in future, and 

the task of ensuring an economic and 

sustainable supply of electricity remains 

one of the Group’s central challenges. 

2. Supply reliability@risk 

As far as the short-term security of 

supply is concerned, the threat potential 

did not change during the course 

of the year. Risk factors include, among 

others, catastrophes that affect the 

grids, such as the total shutdown of 

a substation in the wake of a storm. 

System breakdowns on the European 

transmission grid network also pose a 

threat. 

The long-term security of supply 

is increasingly threatened by the 

growing demand for electricity. The 

risk factors that could speed up the 

electricity supply shortfall include a 

drop in the production of hydropower 

as a result of climate change and new 

regulatory requirements (minimum 

fl ow requirements) as well as the delayed 

realization or failure of projects 

to build new power plants. 

3. Environment@risk 

As far as the dangers to the environment 

(people, property or the environment) 

are concerned, the threat potential remains 

unchanged since the last report. 

The construction and operation of 

power plants and grids harbour a residual 

operating risk which is systematically 

controlled and monitored in line 

with strict safety regulations. 

4. Reputation@risk 

As a public company engaged in the 

supply of energy, Axpo is subject to a 

number of reputational risks. These 

could arise primarily from current discussions 

on the general future of energy 

supply, the level of electricity prices, 

and the construction and operation of 

new power plants and grids. 

Risk management process 

Axpo’s risk management process follows a comprehensive 

set of rules. The process starts with 

the identifi cation of the relevant risks half-yearly at 

Group level and in the Group companies. 

The risk assessment and measures required to 

manage and monitor the risks are then compiled 

in a risk report addressed to the Corporate Risk 

Council and the Board of Directors. The results 

of the risk monitoring process are included in the 

next risk identifi cation process. 

nt 4 Measure implementation 5 Risk monitoring 

The risk environment has 

calmed down. The economy 

is likely to recover slowly in 

2010, but some uncertainties 

remain. Axpo will continue 

to be particularly vulnerable 

to regulatory changes in 

the future. 

1 Risk identification 2 Risk assessment 3 Risk manageme


The protection of the climate is a challenge for all of 

us. Electricity can replace fossil fuels for heating 

and mobility, thereby reducing the use of these energy 

carriers. Heat pumps instead of oil heating, electric 

engines instead of petrol or diesel drive – electricity 

will play a key role in the protection of the climate.

Climate protection 

How we are protecting the climate with almost 

CO2-free electricity.

Axpo is dedicated to climate protection – on several fronts. 

The company is the largest producer of low-CO2 electricity in 

Switzerland. Its power plant fl eet is climate-friendly, and it 

offers its customers new and focused support in the reduction 

of CO2 emissions. 

Putting a price on CO2 

Since 2005, companies in the EU must offset 

their CO2 emissions with emission certifi - 

cates. This system aims to put a price on CO2 

and reduce emissions in the long term. 

Until now, companies received their certifi - 

cates free of charge from their state governments, 

but the price can also be fi xed 

by obliging companies that emit more CO2 

than permitted by their certifi cates to buy 

additional rights on the market. Those 

who emit less CO2 can sell their superfl uous 

certifi cates. In this way, emission trading 

creates incentives to invest in environmental 

technologies. 

In Switzerland, 344 companies have 

undertaken to meet binding emission targets 

during the period from 2008 to 2012. 

They were allocated free emission rights, 

and since November 2009 have been able to 

trade these on an off-exchange platform of 

the Cantonal Bank of Berne. 

The carbon footprint 

An international comparison of per capita 

CO2 emissions in tonnes. 

11,1 

10 

8,9 

7,6 

6 

5,8 

0 10 

US 

Russia 

Germany 

UK 

Italy 

France 

Switzerland 

Source: International Energy Agency, Key World 

Energy Statistics (2008) 

19 

20 

Climate change demands the reduction of energy consumption 

as well as CO2 emissions and other climate-damaging gases. 

It is very important that electricity is produced with the 

lowest possible CO2 emissions. 

The most pressing target that must be reached is only 

one tonne of CO2 per person per year, with energy consumption 

as low as possible. The Swiss carbon footprint is currently 

just under six tonnes per annum per capita – this may be 

low in an international comparison, but from the point of view 

of climate protection it is still far too high. Axpo is helping 

on various levels to reduce this carbon footprint. 

Axpo power plants protect the climate 

With its power plant fl eet, Axpo makes a considerable contribution 

to the Swiss climate balance sheet, as hardly any CO2 is 

emitted by its hydropower and nuclear power plants. Axpo is 

the largest producer of low-CO2 electricity from hydropower in 

Switzerland. As Swiss waters are already used very intensively, 

further development will primarily focus on the optimization 

of existing plants. In the coming years, Axpo will invest 

around CHF 3 billion for this purpose. 

Axpo is convinced that at present nuclear energy is the 

second most important pillar of the Swiss electricity supply 

system. Apart from run-of-river power plants, no other technology 

is available which – measured over the whole cycle 

from construction through fuel procurement and operation to 

dismantling and storage of waste – has such low levels of CO2 

emissions. Axpo has confi rmed this with a certifi ed environmental 

balance sheet study carried out at the Beznau nuclear 

power plant. 

Reducing the carbon footprint 

As a new service, Axpo can now support its customers in developing 

and implementing a climate protection strategy. The 

CO2 service comprises three phases with different products 

for every phase. Firstly, Axpo helps its customers to identify 

their carbon footprint so that they know where they are emitting 

most CO2 and how they can best reduce these emissions. 

Secondly, Axpo helps its customers to reduce CO2 emissions 

by company-internal means, which could include measures to 

increase energy effi ciency, but also a change-over to CO2neutral 

natural electricity products or the optimization of building 

systems. Finally, Axpo offers its customers the option of 

neutralizing the remaining emissions which cannot be reduced 

in an economically viable manner by means of high-quality 

emission credits from Switzerland and abroad.

The global objective: 

halving CO2 emissions 

Climate change is directly related to energy 

production. The International Energy 

Agency (IEA) has therefore adopted the objective 

of halving global CO2 emissions by 

2050, and lists the measures required to 

achieve this objective in its World Energy 

Outlook 2008. These include improved effi 

ciency, renewable energies, nuclear energy 

and carbon capture and storage (CCS). 

Three questions for Robert Seiler, 

Head of the CO2 Business Unit at 

Axpo Suisse AG 

“Electricity imports do not impact the 

Swiss CO2 balance sheet” 

Where in the electricity production cycle 

is CO2 generated? 

Robert Seiler: CO2 is only emitted where 

fossil fuels are used. In Switzerland, we 

mainly generate electricity from hydropower, 

nuclear power and renewable energies, 

so that very little CO2 is released. 

How is the price of CO2 calculated? 

Ideally, the price of a certifi cate equals the 

cost of preventing one tonne of emissions. 

This is, of course, where the market comes 

into play. Since a price has been put on 

CO2, this price has fl uctuated between CHF 

20 and CHF 40 per tonne. The current price 

is CHF 25 per tonne of CO2 emissions. 

How do foreign electricity imports affect 

Switzerland’s CO2 balance sheet? 

Not at all! According to the Kyoto protocol, 

the principle of territorial integrity applies. 

Electricity imports have no effect on 

the Swiss CO2 balance sheet at a political 

level, but from a physical point of view we 

do in fact cause emissions at the point of 

production. On the other hand, Switzerland 

does not receive any CO2 “credit” for the 

CO2-free electricity that it exports. 

Climate-killing cattle? 

The digestive systems of cattle emit large quantities of methane, 

which is harmful to the climate. In Canada, cattle are responsible for 

no less than 72 % of methane* emissions. Researchers at the University 

of Alberta in Canada have identifi ed certain feed types and 

genetic factors as causes, which means that it should be possible 

to reduce methane emissions by as much as 25 % by giving cattle different 

feed and applying selective breeding methods. 

* Methane is 17 times more harmful to the climate than CO2. 

Additional Information: 

www.ualberta.ca 

With its power plant fl eet, Axpo makes 

a considerable contribution to the 

Swiss climate balance sheet, as hardly 

any CO2 is emitted by its hydropower 

and nuclear power plants.


Warnings about global warming are scaremongering. 

Our domestic electricity is mainly 

generated from hydropower and nuclear power 

and is almost free of CO2. The Swiss population 

is thus already making an important contribution 

to the protection of our climate. Nothing more 

needs to be done.


32 – 33 








Corporate governance 

Effi cient management, effective 

control and transparent 

information. 

As an entity owned by the cantons of Northeastern 

Switzerland, Axpo is committed to managing the company 

in accordance with accepted corporate governance 

guidelines. It attaches the utmost importance to effi cient 

management, effective control mechanisms and a 

transparent information policy. Axpo aims to strengthen 

the confi dence of its customers, business partners, 

capital providers and shareholders by providing transparent 

information on its organizational structures, 

management bodies and shareholder structure.

Group structure 

and shareholders 

Group structure 

In operational terms, Axpo Group is 

managed via the subsidiary companies 

of Axpo Holding AG and by the Group 

head offi ce. The subsidiaries are: 

− Axpo AG (until 30.9.2009 NOK), 

comprising 

• Power generation, transmission, 

distribution and supply in Northeastern 

Switzerland, 

• Electricity trading, 

• Electricity products, energy 

services 

− Centralschweizerische Kraftwerke 

AG (CKW), comprising 

• Power generation, transmission, 

distribution and supply in Central 

Switzerland, 

• Electricity trading, 

• Energy services. 

− Elektrizitäts-Gesellschaft Laufenburg 

AG (EGL), comprising 

• Power generation, transmission 

and supply in Switzerland 

and Europe, 

• International trading with power, 

gas and energy-related fi nancial 

products. 

− Axpo Informatik AG, comprising 

IT support, consulting and services 

as well as the operation of infrastructure 

and applications for the 

Axpo Group companies and several 

affi liated cantonal utilities. 

Axpo Group’s management and corporate 

structures are presented on pages 

41 and 42. The tables listing the fully 

consolidated and equity-consolidated 

companies and the equity-consolidated 

partner plants can be found on pages 

60 to 63. 

Subsidiaries listed 

on the stock exchange 

The registered shares of the Lucernebased 

Centralschweizerische Kraftwerke 

AG are listed on the SIX Swiss Exchange 

under security number 2060 347 (ISIN 

CH0020603475; Telekurs code CKWN). 

Market capitalization as of 30 September 

2009 amounted to CHF 2096.9 million 

at a share price of CHF 353. Axpo Holding 

AG owns 74.8 %. 

The bearer shares of the Laufenburg-based 

Elektrizitäts-Gesellschaft 

Laufenburg AG are listed on the SIX 

Swiss Exchange under security number 

328822 (ISIN CH0003288229; Telekurs 

code EGL). Market capitalization as of 

30 September 2009 amounted to CHF 

2904 million at a share price of CHF 

1100. Axpo Holding AG owns 91 %. 

Shareholders 

The Axpo Holding AG shares are wholly 

owned by the cantons of Northeastern 

Switzerland and the corresponding 

cantonal utilities. As of 30 September 

2009 these were: 

The shareholders of Axpo Holding AG 

in % in CHF million 

Canton of Zurich 18.342 67.9 

Utilities of Canton of Zurich 18.410 68.1 

Canton of Aargau 13.975 51.7 

AEW Energie AG 14.026 51.9 

SAK Holding AG 12.501 46.3 

EKT Holding AG 12.251 45.3 

Canton of Schaffhausen 7.875 29.1 

Canton of Glarus 1.747 6.5 

Canton of Zug 0.873 3.2 

Total share capital 100.000 370.0


34 – 35 








The Axpo Holding AG 

shares are wholly owned by 

the cantons of Northeastern 

Switzerland and the corresponding 

cantonal utilities. 

Under the founding agreement of Axpo 

AG (formerly Nordostschweizerische 

Kraftwerke AG) of 22 April 1914, the 

Axpo Holding AG shareholders undertook 

to purchase the entire amount of 

power needed by the cantonal utilities 

exclusively from Axpo AG. This purchase 

obligation is matched by Axpo AG’s 

exclusive obligation to supply the 

cantons and the cantonal utilities. 

Cross shareholdings 

There are no cross shareholdings. 

Capital structure 

Share capital 

The share capital of Axpo Holding AG 

amounts to CHF 370 million, divided 

into 37 000 000 registered shares with a 

par value of CHF 10 each. The shares 

are fully paid up. Each share entitles 

the holder to one vote at the annual 

general meeting of shareholders and to 

a pro-rata share of the dividend distributed. 

Shares 

Registered shares may only be transferred 

with the approval of the Board 

of Directors. This restriction also 

applies to the establishment of a benefi 

cial interest. As long as the required 

approval of transfer is not granted, 

ownership of the shares and all associated 

rights remain with the seller, 

subject to Art. 685 c par. 3 of the Swiss 

Code of Obligations. Reasons for 

denying consent are: 

− acquisition of shareholdings 

by a competitor, 

− the fi nancial autonomy of the 

company is jeopardized by the 

transaction, 

− the objective of the company 

is jeopardized by the transaction. 

Changes in equity 

The share capital of Axpo Holding AG 

has not changed since the establishment 

of the company in 2001. Details 

of other changes in equity can be 

found on page 8 of the fi nancial report 

for the consolidated fi nancial statements 

of Axpo Group and on page 72 

for the fi nancial statements of Axpo 

Holding AG. Axpo Holding AG has neither 

authorized nor contingent capital 

at its disposal. 

Board of Directors 

and Executive Board 

Election and term of offi ce 

The Board of Directors is elected by 

the annual general meeting (AGM) of 

shareholders. The shareholders make 

binding proposals regarding the members 

of the Board of Directors. The 

seats on the Board of Directors are distributed 

among the cantons according 

to their shareholdings. The members 

of the Board are elected for a term of 

offi ce of two years and re-election 

is possible. The current term of offi ce 

runs from the 2009 AGM to the 2011 

AGM. The current Board members do 

not exercise any executive functions 

within Axpo Group. 

Powers and responsibilities 

The duties of the Board of Directors 

are based on the relevant provisions of 

the Swiss Code of Obligations. The 

Board is responsible for the top-level 

management of the company and for 

supervising the Executive Board. In 

particular, it is responsible for establishing 

organizational structures, 

arranging the accounting system, fi nancial 

controlling and fi nancial planning, 

appointing the members of the Executive 

Board and determining their 

salaries, preparing the annual report, 

and preparing for the AGM and implementing 

its resolutions. The Board of 

Directors represents the company

Dr. Wulf Glatz, 35, won the 2009 Swisselectric research award and was recently 

promoted from being a doctoral candidate at the Swiss Federal Institute of Technology 

in Zurich to CEO of greenTEG. He would like to use thermo-electric generators to 

make a contribution to the energy supply industry of tomorrow – to the benefi t of 

everybody and without harming the environment. 

“Energy is the foundation 

for progress.”

Judith Stöckli-Joos, 36, works on her brother’s farm in Untervaz 

and hopes to continue spending time enjoying nature in the future. 

“Energy is essential.”

vis-à-vis third parties and deals with 

all matters that have not been assigned 

to another governing body of the company 

by law, the articles of association 

or the organizational rules. In addition, 

the Board of Directors of Axpo Holding 

AG decides on the strategic principles 

and planning of the major companies 

of the Group and also on measures in 

connection with profi t reporting. 

The powers and responsibilities 

of the Board of Directors and the Executive 

Board are set out in the organizational 

rules of 4 April 2003. These describe 

the non-transferable duties of 

the Board of Directors, at the same time 

delegating all other business activities 

to the Executive Board. The Executive 

Board is responsible for the operational 

management of the Group, for which 

the CEO bears overall responsibility. The 

CEO’s responsibilities and powers are 

also defi ned in the organizational rules 

and in the fi nancial responsibilities 

statement of 3 July 2003. 

The Board of Directors can only 

bind the company legally by way of 

joint signature, with a minimum of two 

signatures. 

Management information 

and controlling tools 

The CEO regularly updates the Board 

of Directors on business performance 

and important events. The Board has 

the following tools at its disposal for 

monitoring and supervising the Executive 

Board and executive management: 

− internal quarterly, half-yearly 

and annual reports 

− strategic planning (Group strategy 

and goals) 

− long-term fi nancial plan (planning 

horizon ten years), 

− annual budget (planning horizon 

one year, plus a further two years) 

− comprehensive auditors’ report 

to the Board of Directors, 

− reports of the CEO. 

The Board of Directors has entrusted 

PricewaterhouseCoopers with the function 

of internal auditor. It carries out 

its audits in accordance with an audit 

plan laid down by the Audit and Finance 

Committee. The area of competence 

of the internal auditor basically covers 

all Group companies. 

In addition, the Board of Directors 

is represented on the Corporate 

Risk Council in the person of Rudolf 

Hug, member of the Audit and Finance 

Committee. The Corporate Risk Council 

met twice in the reporting year. 

Internal organization 

The Board of Directors constitutes 

itself and elects its Chairman and 

Vice-Chairman. In addition, the Board 

can appoint a secretary, who need not 

be a member of the Board of Directors. 

The Board of Directors can set up 

committees and confer special duties 

and powers on these committees. There 

are currently four standing committees, 

which analyze in greater depth 

the business- or personnel-related 

decisions made by the Executive Board. 

The committees report to the Board 

of Directors to allow it to prepare its 

resolutions and exercise its supervisory 

functions and make recommendations 

regarding various business- and 

personnel-related matters. Specifi cally, 

the committees have the following 

main functions: 

Axpo issues transparent, 

active and honest information 

on the Group, its 

objectives and specifi c 

events. Its dialogue with the 

public enhances the Group’s 

credibility and promotes 

understanding of its business 

policies.


38 – 39 








Axpo Group sets great 

store by the ethical and 

responsible conduct of all 

employees and governing 

bodies in their contact 

with business partners, 

government authorities 

and the public, as well as 

within the Group itself. 

Audit and Finance Committee: 

− Formulating assessments of the 

fi nancial state of the Group, the 

quality of the external auditing and 

internal controlling systems, the 

functioning of the risk management 

system and compliance with the 

regulations within the Group 

− Coordinating the audit plan with the 

internal and external auditors and 

assessing the fi nancial statements 

− Advising the Board of Directors on 

matters of fi nancial management, 

transactions and investments and 

on corporate governance and compliance 

issues. 

The Audit and Finance Committee met 

seven times in the reporting year. 

The Committee assessed the quarterly 

fi nancial reports, the annual fi nancial 

statements and the Group’s fi nancial 

planning. It studied the half-yearly 

risk report to obtain an overview of 

the current risk situation of Axpo 

Group. It also discussed the audit plan 

and the reports submitted by the 

internal auditor. In addition, management 

regularly updated the Committee 

on the progress made with the implementation 

of the measures proposed by 

the internal auditor. During the year 

under review, the Committee also assessed 

various acquisitions, investments 

and divestments and submitted 

reports to the Board of Directors. 

Remuneration and Human Resources 

Committee: 

− Preparing proposals for the remuneration 

and expenses regulations of 

the members of the Board of Directors 

and taking the fi nal decision on 

the remuneration paid to the members 

of the Executive Board in accordance 

with the Board’s guidelines on 

the management salary system 

− Supporting the selection and assessment 

of candidates for the Executive 

Board 

− Ensuring that the total remuneration 

packages are in line with the market 

and employee performance and that 

Axpo remains competitive on the labour 

market 

− Advising the Board of Directors on 

all personnel issues and personnel 

management proposals by the CEO of 


− Formulating an opinion and recommendations 

on the Group’s personnel 

policy and strategy as well as the 

pension plans. 

With the exception of determining the 

remuneration of the members of the 

Executive Board in accordance with the 

guidelines on the management salary 

system approved by the Board, overall 

responsibility for the duties delegated 

to the Committee remains with the 

Board of Directors. 

The Remuneration and Human 

Resources Committee met twice in the 

year under review. It focused on the 

remuneration of the members of the 

Board of Directors and the Executive 

Board. 

Strategy Committee: 

− Dealing with all strategic issues affecting 

the Group and subsequently 

submitting these to the Board of 

Directors. 

The Strategy Committee met four 

times in the year under review. The 

topics handled by the Committee 

included the Group strategy, sustaina-

ility, the strategic energy business, 

the planning of future production 

plants, renewable energies and acquisitions. 

Nominations Committee: 

− Formulating criteria for the selection 

and re-election of candidates to 

the Board of Directors in the form 

of a recommendation to the shareholders 

− Discussing the selection of candidates 

with shareholders 

− Preparing the nomination of the 

members of the Board of Directors 

and the Executive Board 

The Board of Directors retains overall 

responsibility for the tasks delegated 

to the Nominations Committee. The 

Nominations Committee has only advisory 

powers. The Committee did not 

meet during the reporting year. 

Remuneration, shareholdings 

and loans 

The members of the Board of Directors 

receive a fi xed fee based on a sliding 

scale for the Chairman, the Vice- 

Chairman and the other Board members. 

They are also paid for attending 

meetings. The amount of the remuneration 

is determined by the Board of 

Directors. 

Remuneration for the members 

of the Executive Board consists of basic 

salaries plus variable salary components, 

pension benefi ts and benefi ts in 

kind. The variable salary components 

depend on the attainment of fi nancial 

and operating objectives. 


and loans to members of the Board 

of Directors and the Executive Board 

are disclosed on pages 75 and 76. 

Shareholders’ 

rights of participation 

The property and participation rights 

of the shareholders are regulated by law 

and by the company’s articles of association. 

The articles do not contain any 

provisions that deviate from the law. 

Axpo Holding AG has issued only registered 

shares and maintains a share 

register. Only those shareholders whose 

names are entered in the share register 

are deemed by the company to be 

shareholders. 

Shareholders holding at least 

10 % of the share capital can request 

the Board of Directors to convene an 

extraordinary general meeting. The 

request must be submitted in writing 

and contain the reasons for calling 

the meeting. The written notice must 

contain the agenda as well as the motions 

of the Board of Directors and the 

shareholders who requested the calling 

of the meeting or who exercised their 

right to add an item to the agenda. 

The general meeting carries out 

its elections and passes its resolutions 

by an absolute majority of the votes 

present and represented, unless a 

qualifi ed majority for ratifying resolutions 

is required by the law (Art. 704 

of the Swiss Code of Obligations). The 

articles of association do not contain 

any provisions on a required quorum 

for voting. The shareholders listed in 

the share register are entitled to vote 

at the general meeting. There are no 

restrictions on voting rights. A shareholder 

can be represented at the general 

meeting by a third party, who need 

not be a shareholder him/herself, with 

a written power of attorney. 


and loans to the members of 

the Board of Directors and the 

Executive Board are disclosed 

on pages 75 and 76.


40 – 41 








Controlling 

Fees 

The following fees were charged in the fi nancial year 2008/09: 

There are no long-term contractual 

ties with members of the Board of 

Directors or the Executive Board. No 

agreements have been made regarding 

severance pay. 

External auditors 

KPMG AG, Zurich is the Group auditor 

and statutory auditor of Axpo Holding 

AG. The audit mandate was given to 

KPMG for the fi rst time for the 2003/04 

fi nancial year. The statutory auditor 

and Group auditor are elected for a period 

of one year by the annual general 

meeting of shareholders. The current 

mandate manager has exercised his 

function since 2004. 

Statutory auditor/ 

Group auditor (KPMG) 

in CHF million 

Auditing fees 3.2 

Additional fees for services 0.1 

The internal audit team 

reviews the risk management 

as well as the effectiveness 

and effi ciency of the business 

procedures. 

The Audit and Finance Committee of 

the Board of Directors periodically 

reviews compliance with the audit plan 

agreed with the statutory auditor. 

Internal auditors 

Internal auditing is not prescribed by 

law and is carried out for all Axpo Group 

companies by PricewaterhouseCoopers 

(PwC). PwC audits risk management 

and the effectiveness and effi ciency 

of business procedures on the instructions 

of the Chairman of the Board 

of Directors or the CEO in consultation 

with the Chairman. The annual audit 

plan is drawn up by the Audit and Finance 

Committee. PwC submits a 

written report to the Chairman of the 

Board of Directors, the Audit and Finance 

Committee, the Executive Board 

and the divisions that were audited. 

The Board of Directors is informed 

orally of the results of the audit. The 

internal auditor is supervised by 

the Audit and Finance Committee of 

the Board of Directors. 

In the 2008/09 fi nancial year, 

the internal audit team focused on 

accounts receivable management, IT 

management and energy and gas 

trading. 

Information policy 

Axpo issues transparent, active and 

honest information about the Group, 

its objectives and specifi c events. 

Its dialogue with the public enhances 

the Group’s credibility and promotes 

understanding of Axpo Group’s business 

policies. 

Axpo attaches great importance 

to communication that meets the 

needs of the target groups. It provides 

its shareholders with information 

at the annual general meeting as well 

as via the half-yearly shareholders’ 

newsletter. In 2008/09, approximately 

70 media releases regarding current 

events at the Group and its subsidiaries 

were sent out to the media. Background 

discussions and interviews provide 

the media with welcome opportunities 

to obtain in-depth information from 

the top management on specifi c topics 

of interest related to the Group or 

the industry. 

Information and news are also 

disseminated to the broad public via 

the two websites energiedalog.ch and 

axpo.ch. Both websites have been updated 

and revised. The energiedialog. 

ch website is a modern information 

platform targeting a younger audience. 

Other fundamental features of Axpo’s 

information policy include regular 

publications such as the annual report 

and the sustainability report as well 

as the quarterly “Energiedialog” newsletter 

targeting opinion leaders in 

the spheres of business, politics and 

society. The redesigned annual report 

was rated among the top 20 annual 

reports in Switzerland by the business 

magazine “Bilanz”.

Axpo also has several tools on hand to 

promote a dialogue between management 

and the employees. The intranet 

serves as a regular information platform 

and a platform for dialogue. The 

employees are also kept up to date 

with developments via Axpo’s own magazine. 

In the past fi nancial year the 

Group also issued a modern electronic 

journal for the fi rst time, which received 

a “best electronic newsletter” award 

for Europe from the Federation of 

European Business Communications. 

Implementation 

of corporate governance 

In keeping with its corporate philosophy, 

Axpo Group sets great store by 

the ethical and responsible conduct of 

all employees and governing bodies 

in their contact with business partners, 

government authorities and the public, 

as well as within the Group itself. 

Axpo does not condone discrimination 

on the basis of personal characteristics 

such as national origin, race, 

gender, age, language, religion or disability. 

Confl icts between personal interests 

and the interests of the company 

are to be avoided. Personal and business 

relationships should be kept apart 

and unavoidable confl icts of interest 

must be disclosed. Axpo’s business 

principles condemn corruption and 

similar actions such as bribery and 

the granting of special favours. 

Management structure 

Corporate Finance 

Rolf Bösch, CFO* 

Corporate Legal 

and Compliance 

Hansueli Sallenbach 

Corporate Public Affairs 

Martin Saxer 


Manfred Thumann, CEO* 


Heinz Karrer, CEO* 


Kraftwerke AG 

Andrew Walo, CEO* 

Corporate Communications 

Rainer Meier 

Corporate Development 

Niklaus Zepf 

Corporate Human Resources 

Martin Lüthy 


Laufenburg AG 

Hans Schulz, CEO* 

*Member of the Executive Board


42 – 43 








Corporate structure 


Baden 

Share capital: CHF 360 million 

100 % 

Axpo Hydropower 

Axpo Nuclear Energy 

Axpo New Energies 

Axpo Grids 

Partner plants and 

subsidiaries 


Kraftwerke AG 

Lucerne 


74,8 % 

Partner plants 

and subsidiaries 


Baden 



Laufenburg AG 

Laufenburg 


91 % 

Partner plants and 

subsidiaries 

Project and production 

companies abroad 

Trading companies and 

grid 

Axpo Informatik AG 

Baden 

Share capital: CHF 0.1 million 

62,7 %

Corporate bodies and Group functions 


BOARD OF DIRECTORS 

Chairman 

Robert Lombardini, Hünenberg 

Vice-Chairman 

Pankraz Freitag, Haslen GL 

Members 

Dr. Ueli Betschart (since 13.3.2009), Nürensdorf 

Peter C. Beyeler, Rütihof 

Jakob Brunnschweiler, Teufen 

Dr. Reto Dubach, Schaffhausen 

Ernst Frey, Kaiseraugst 

Rita Fuhrer, Auslikon 

Hans-Peter Härtsch, Flawil 

Rudolf Hug, Oberrohrdorf 

Markus Kägi, Niederglatt 

Peter Reinhard, Kloten 

Rolf Sägesser, Greifensee (until 13.3.2009) 

Dr. Hansjakob Zellweger, Weinfelden 

EXECUTIVE BOARD 

Heinz Karrer, CEO 

Dr. Rolf Bösch, CFO 

Dr. Hans Schulz, CEO EGL 

Dr. Manfred Thumann, CEO Axpo AG 

Dr. Andrew Walo, CEO CKW 

GROUP FUNCTIONS 

Eduard Annaheim, 

Corporate Finance & Controlling 

Thomas Erb, Corporate Insurance 

Martin Lüthy, Corporate Human Resources 

Andreas Lützelschwab, Corporate Treasury 

Dr. Clemens Mann, Corporate Risk Management 

Rainer Meier, Corporate Communications 

Rolf Meier, Corporate IT Management 

Hansueli Sallenbach, 

Corporate Legal and Compliance 

Martin Saxer, Corporate Public Affairs 

Michael Schmid, Corporate Tax 

Niklaus Zepf, Corporate Development 

STATUTORY AND GROUP AUDITOR 

KPMG AG, Zurich 



Chairman 

Dr. Philipp Stähelin, Frauenfeld 

Vice-Chairman 

Heinz Karrer, Münsingen 

Members 

Dr. Rolf Bösch, Wettingen 

Jürg Schöning, Zurich 

Dr. Hans Schulz, Balzers 

Dr. Andrew Walo, Zurich 

Ernst Werthmüller, Holziken 


Dr. Manfred Thumann, CEO 

Dr. David Brunner, Trading & Sales 

Dr. Stephan Werner Döhler, Nuclear Energy 

Peter Enderli, CFO 

Dr. Valentin Gerig, New Energies 

Rolf W. Mathis, Hydropower 

Dr. Dieter Reichelt, Electrical Grids 

AUDITOR 

KPMG AG, Zurich 


Kraftwerke AG (CKW) 


Chairman 


Vice-Chairman 


Members 

Paul Meier, Meggen 

Max Pfi ster, Nebikon 

Dr. Hans Schulz, Balzers 

Dr. Manfred Thumann, Lengnau (AG) 

Heidi Zgraggen, Erstfeld 


Dr. Andrew Walo, CEO 

Heinz Beeler, 

Electrical Grids division 

Beat Schlegel, CFO 

Dr. Thomas von Weissenfl uh, 

Energy division 

AUDITOR 

KPMG AG, Root/Lucerne 


Laufenburg AG (EGL) 


Chairman 


Vice-Chairman 


Members 

Dr. Peter A. Derendinger, Schwyz 

Dr. Dominik Koechlin, Riehen 

Dr. Manfred Thumann, Lengnau (AG) 

Dr. Andrew Walo, Zurich 

Dr. Benedikt Weibel, Muri (BE) 


Dr. Hans Schulz, CEO 

Markus Brokhof, Gas Supply & SEE 

Dr. Guy Bühler, Assets 

Domenico De Luca (since 1.4.2009), 

Energy Trading & Origination 

Dr. Andreas Rudolf, Finance & Operations 

AUDITOR 

KPMG AG, Basle


44 – 45 








Board of Directors 

Robert Lombardini 

Chairman of the Board of Directors 

Born in 1949, Swiss 

Robert Lombardini, dipl. El.-Ing. ETH (electrical 

engineer), has been a member and the Chairman 

of the Board of Directors since 2004, as well as 

a member of the Audit and Finance Committee, 

the Remuneration and Human Resources Committee 

and the Strategy Committee. Until 2003, Robert 

Lombardini was a divisional head and CEO of 

Dätwyler Group. Prior to this he worked in various 

managerial functions for Motor Columbus and Agie. 

Robert Lombardini is also a member of the following 

boards: Kistler Instrumente AG (chairman), 

Sécheron Hasler Holding SA (chairman) and SIG 

Combibloc Group AG (member). 

Pankraz Freitag 

Member of the Board of Directors 


Pankraz Freitag, a qualifi ed mathematician, has 

been a member of the Board since 2001 and 

Vice-Chairman since 2005. He is also the chairman 

of the Strategy Committee and a member of 

the Nominations Committee. He has been the representative 

of Canton Glarus in the Council of 

States since 2008. Between 1998 and 2008, he 

served as Director of Public Works and the Environment 

in the Government of Canton Glarus. 

From 1978 to 1996, Pankraz Freitag was a teacher 

and, from 1996 to 1998, the vice-principal of 

the cantonal school in Glarus. 

Pankraz Freitag is also a member of the following 

boards: Marelcom AG and Nagra. 

Ueli Betschart 

Member of the Board of Directors since March 2009 


Ueli Betschart, dipl. El. Ing. ETHZ (electrical 

engineer) and Dr. sc. techn., has been a member 

of the Board of Directors since 13 March 2009. 

He is also a member of the Audit and Finance 

Committee. He has been Director of Electrosuisse 

since 2003. From 2000 to 2003 he was the CEO 

of Brugg Cables and from 1997 to 2000 he served 

as the CEO of Afag AG. 

Ueli Betschart has also been a member of the 

board of directors of the Utilities of the Canton 

of Zurich (management committee) since 2006. 

Peter C. Beyeler 



Peter C. Beyeler, dipl. Bauing. ETH (construction 

engineer), has been a member of the Board of 

Directors since 2001. He is also a member of the 

Strategy Committee. He has been a member of 

the Government of Canton Aargau since 2000, 

where he serves as the Director of Public Works, 

Transport and the Environment. From 1983 to 

2000, he served as deputy director of Axpo AG, 

Baden. 

Peter C. Beyeler is also a member of the board 

of Alp Transit Gotthard AG ATG. 

Jakob Brunnschweiler 

Member of the board of directors 


Jakob Brunnschweiler, dipl. Bauing. FH (construction 

engineer), has been a member of the Board 

of Directors since 2001. He is also chairman of the 

Nominations Committee. He has been a member 

of the Government of Canton Appenzell Ausserrhoden 

since 1998, where he served as Director of 

Public Works and the Environment, and has been 

Chief Magistrate of Appenzell Ausserrhoden since 

2006. From 1980 to 1998 Jakob Brunnschweiler 

was the managing director of an engineering company 

and a member of the executive board of a 

construction company. Prior to this he worked as 

an engineer in Effretikon and in Teufen. 

Jakob Brunnschweiler is also a member of the following 

boards: SAK Holding AG (vice-chairman) 

and SEAG Aktiengesellschaft für schweizerisches 

Erdöl. 

Reto Dubach 



Reto Dubach, Dr. iur. (lawyer), has been a member 

of the Board of Directors as well as a member of 

the Remuneration and Human Resources Committee 

since 2008. Reto Dubach has also been Director 

of Public Works in the Government of Canton 

Schaffhausen since 2008. From 1997 to 2007, he 

was State Chancellor of Canton Schaffhausen. 

Reto Dubach is also a member of the following 

boards and executive bodies: Elektrizitätswerk 

des Kantons Schaffhausen AG (chairman), Regionale 

Verkehrsbetriebe Schaffhausen AG (chairman), 

Verein Agglomeration Schaffhausen (chairman), 

Schweizerische Schifffahrtsgesellschaft Untersee 

und Rhein AG, Kraftwerk Schaffhausen AG. 

Ernst Frey 



Ernst Frey, dipl. Bauing. ETH/SIA (construction 

engineer), has been a member of the Board of 

Directors since 2005. He is also a member of the 

Nominations Committee. From 1980 to 2003, 

he served as CEO of Ernst Frey AG and has been 

the chairman of the board of Ernst Frey AG 

since 1987. Prior to this he was a member of the 

executive board of Ernst Frey AG. 

Ernst Frey is also a member of the following 

boards and executive bodies: Buebechilch AG 

(chairman), Immoka Immobilien AG (chairman), 

Kraftwerk Augst AG (chairman), Belags werk 

Rinau AG, Regio Wiederverwertungs AG, AEW 

Energie AG, BEC AG, Immobilien AEW AG. 

Rita Fuhrer 



Rita Fuhrer has been a member of the Board of 

Directors and the Nominations Committee since 

2001. She is also Director of Public Economy in 

the Government of Canton Zurich. 

Rita Fuhrer is also a member of the following boards: 

Elektrizitätswerke des Kantons Zürich, Unique 

Flughafen Zürich AG, Schweizerische Nationalbank, 

Stiftung Greater Zurich Area, Stiftung Technopark 

Zürich, Stiftung für bürgerliche Politik. 

Hans-Peter Härtsch 



Hans-Peter Härtsch, lic. oec. HSG (economist), 

has been a member of the Board of Directors and 

Chairman of the Audit and Finance Committee 

since 2001. He is also a judge at the Commercial 

Court of Canton St. Gallen. From 1977 to 1980, 

Hans-Peter Härtsch was the marketing manager 

and assistant to the executive board of Flawa AG. 

From 1980 to 2004, he served as the managing 

director reporting to the board of directors and 

chairman of the executive board of Flawa AG 

(from 1989 Flawa Group). 

Hans-Peter Härtsch is also a member of the following 

boards: Flawa Holding AG (chairman and 

managing director), Flawa AG (chairman and 

managing director), Hotel Rössli Flawil AG (chairman), 

St. Galler Kantonalbank (vice-chairman), 

SAK Holding AG, Euro Wipes SA, France, Lohmann 

& Rauscher International GmbH & Co. KG, 

Germany (deputy chairman of advisory council). 

Rudolf Hug 



Rudolf Hug has been a member of the Board of 

Directors and a member of the Audit and Finance 

Committee since 2003. He is also a member of 

the Corporate Risk Council of Axpo Holding AG 

and a judge at the Baden Labour Court. Rudolf 

Hug has been in business since 1983 and established 

a number of companies under the umbrella 

of HT-Holding AG. 

Rudolf Hug is also a member of the following 

boards and executive bodies: HT-Holding AG 

(chairman), AOS Technologies AG (chairman), 

ELSOFT AG (chairman), MPL AG Elektronik- 

Unter nehmen (chairman), MPI Distribution AG 

(chairman), M-TEK AG (chairman), AEW Energie 

AG, HINT AG, Swissmem (board member), 

Economie suisse (board member and chairman of 

the Energy & Environment standing committee). 

Markus Kägi 



Markus Kägi has been a member of the Board of 

Directors since 2007. He is a member of the 

Government of Canton Zurich, where he serves 

as Director of Public Works. From 1996 to 2007, 

he was ombudsman for Canton Zurich and, from 

1991 to 1996, he was a member of the Parliament 

of Canton Zurich. 

Markus Kägi is also a member of the board of 

directors of Elektrizitätswerke des Kantons Zürich 

and holds a Zurich notary’s patent.

Peter Reinhard 


Born in 1954, Swiss and Italian 

Peter Reinhard has been a member of the Board 

of Directors and a member of the Remuneration 

and Human Resources Committee since 2005. He 

is a member of the Parliament of Canton Zurich 

and has been chairman of the EVP parliamentary 

group since 1994. He has also been the chairman 

of the Federal Association of Cantonal Police, 

Zurich since 1997 and managing director of a construction 

cooperative in Zurich since 1984. 

Peter Reinhard is also a member of the board of 

directors of Elektrizitätswerke des Kantons Zürich 

(member of Audit Committee). 

Rolf Sägesser 

Member of the Board of Directors until March 2009 


Rolf Sägesser, dipl. Bauing. ETH/M.Sc.E. (construction 

engineer), was a member of the Board 

of Directors from 2004 until 13 March 2009, as 

well as being a member of the Audit and Finance 

Committee. He is a founding partner of SKS 

Ingenieure AG, Zurich, which was established in 

1980. Prior to this, he worked for Basler & Hofmann 

for eight years as a project engineer and 

specialist in earthquake engineering. 

Rolf Sägesser is also a member of the following 

boards: Suisseplan Ingenieure AG (chairman) and 

Elektrizitätswerke des Kantons Zürich (chairman). 

Hansjakob Zellweger 



Hansjakob Zellweger, Dr.iur. (lawyer), has been 

a member of the Board of Directors and a member 

of the Remuneration and Human Resources 

Committee since 2004. 

He is also a member of the following boards: 

Polygal AG, Sun Bürglen AG and Stutz Holding AG, 

St. Gallen. 

The Board of Directors, from left to right: 

Rolf Sägesser, Markus Kägi, Reto Dubach, Hans-Peter Härtsch, Peter C. Beyeler, Peter Reinhard, 

Robert Lombardini (Chairman), Pankraz Freitag (Vice-Chairman), Rita Fuhrer, Rudolf Hug, Hansjakob 

Zellweger, Jakob Brunnschweiler, Ernst Frey 

Missing from the photo: Ueli Betschart


46 – 47 







Annual report / 50–65

Executive Board 

Heinz Karrer 

Chief Executive Offi cer 


Heinz Karrer has been Chief Executive Offi cer 

(CEO) of Axpo Holding AG since 2002. Until 

30 September 2007, he was also the CEO of Axpo 

AG (formerly NOK). From 1998 to 2002, Heinz 

Karrer was a member of the executive board of 

Swisscom AG, where he served as head of the 

Marketing & Sales division. Prior to this, he was 

the head of Ringier Schweiz and a member of 

the executive board of Ringier AG, as well as CEO 

and managing director of Intersport Holding AG. 

Heinz Karrer is a member of the supervisory 

boards of the following Axpo Group companies: 

Elektrizitäts-Gesellschaft Laufenburg AG (chairman), 

Centralschweizerische Kraftwerke AG 

(vice-chairman) and Axpo AG. He is also a member 

of the following boards: Swissgrid AG, Resun AG, 

SRG idée suisse Deutschschweiz (until the end 

of 2009) and Kuoni Reisen Holding AG. He is also 

a member of the board of directors of Swisselectric 

and Economiesuisse. Heinz Karrer has a 

business diploma. 

Rolf Bösch 

Member of the Executive Board 


Rolf Bösch, Dr. oec. HSG (economist), has been 

CFO of Axpo Holding AG and a member of the 

Executive Board since 2002. From 1986 to 2002, 

he was CFO and, from 1993, a member of the 

executive board of Vetropack Group. From 1979 

to 1986, he worked in various positions as a 

business economist in Swiss companies in the 

mechanical engineering industry. 

Rolf Bösch is a member of the following boards 

and executive bodies: Axpo AG, Centralschweizerische 

Kraftwerke AG (vice-chairman), Elektrizitäts- 

Gesellschaft Laufenburg AG (vice-chairman), 

PKE-CPE Vorsorgestiftung Energie (chairman 

of the board of trustees), Committee of the Decommissioning 

and Waste Disposal Fund for 

Nuclear Power Plants. 

Hans Schulz 


Born in 1959, German 

Hans Schulz is a qualifi ed industrial engineer 

and has a doctorate in mechanical engineering. 

He has been Chief Executive Offi cer (CEO) of 

Elek trizitäts-Gesellschaft Laufenburg AG since 

2007 and a member of the Executive Board since 

2006. From 2006 to September 2007, he was a 

member of the Executive Board of Axpo AG (formerly 

NOK) and head of the Electrical Grids and 

Trading & Sales divisions. Prior to this, he worked 

for today’s OC Oerlikon for 18 years, where he 

served in various managerial positions in the 

Balzers division (coating division). From 1999, he 

was also a member of the expanded executive 

board of OC Oerlikon. 

Hans Schulz is a board member of Swisselectric 

and a member of the following boards: Axpo 

AG, Centralschweizerische Kraftwerke AG, Trans 

Adriatic Pipeline AG, Rätia Energie AG, Poschiavo, 

and Rätia Energie Klosters AG. 

Manfred Thumann 



Manfred Thumann is a qualifi ed mechanical engineer 

and holds a doctorate in materials science. 

He has been Chief Executive Offi cer (CEO) of 

Axpo AG (formerly NOK) since 2007 and a member 

of the Executive Board since 2004. Until 

2003, he was a member of the Executive Board 

of Axpo AG. From 2003 to 2007, he was head 

of the Nuclear Energy division and CEO of Kernkraftwerk 

Leibstadt AG. From 1997 to 2003, he 

was director of the gas turbine business of Alstom. 

Prior to this, he worked for the ABB Group in 

various positions and was also a researcher at the 

German Aerospace Centre. 

Manfred Thumann is a member of the following 

boards and executive bodies: Axpo Informatik AG 

(chairman), Axpo Suisse AG (chairman), Resun 

AG (chairman), Ersatz Kernkraftwerk Beznau AG 

(chairman), Kernkraftwerk Leibstadt AG (chairman), 

Kernkraftwerk Gösgen-Däniken AG (vicechairman), 

Centralschweizerische Kraftwerke 

AG, Elektrizitäts-Gesellschaft Laufenburg AG, 

Ersatz Kernkraftwerk Mühleberg AG, Swisselectric 

research (chairman), Verband Schweizerischer 

Elektrizitätsunternehmen (VSE) (board member). 

The Executive Board, from left to right: 

Heinz Karrer (CEO), Hans Schulz, Andrew Walo, Rolf Bösch, Manfred Thumann 

Andrew Walo 


Born in 1963, Swiss and British 

Andrew Walo, Dr. oec. publ. (economist) has 

been Chief Executive Offi cer (CEO) of Centralschweizerische 

Kraftwerke AG and a member 

of the Executive Board since 2004. From 2001 to 

2004, he was the general manager of SN Energie 

AG and Kraftwerke Zervreila AG in Vals. Prior 

to this he held several managerial positions with 

Alstom and ABB. 

Andrew Walo is the chairman of the boards of 

CKW Conex AG and Elektrizitätswerk Altdorf 

AG. He is also a member of the following boards 

of directors: Axpo AG, Elektrizitäts-Gesellschaft 

Laufenburg AG, Swissgrid AG, Resun AG, Elektrizitätswerk 

Schwyz AG, Kraftwerk Göschenen AG, 

Kernkraftwerk Gösgen-Däniken AG and Kernkraftwerk 

Leibstadt AG. He is also a member of 

the CKW Providence Foundation, the board of 

Swisselectric, the Lucerne Industrial Association 

(LIV) and the Association of Swiss Electricity 

Companies (VSE).


Nobody will be able to do without electric cars where 

environmental-friendly individual transport is 

concerned. Developers around the globe are working 

feverishly to build electric cars that are suited 

for sale to the masses. In future, fi lling up your car 

from the electric socket will be a matter of course.

Mobility 

What will get us moving in future?

Axpo believes in the potential of electric mobility. In future, 

electric and hybrid vehicles will be an integral part of the 

Swiss streetscape and a dense public transport network will 

link town and country. As a result, the importance of electricity 

as an energy carrier will increase substantially, and electricity 

will be the “fuel” of the future. 

The race is on to produce the fi rst electric car 

for mass production 

Small, innovative car manufacturers still have the edge, such as the 

Californian company Tesla Motors with their sporty Roadster or the 

Norwegian manufacturer Think, which started developing its Think 

City electric car 18 years ago. With fuel-saving cars now becoming 

a roaring success in the US as well as Europe, they would like to keep 

the market to themselves for a few more years. 

This, however, is not likely to happen: the major car manufacturers 

may have been dragging their feet for a long time, but now they 

are all the more determined to catch up. Backed by large R & D budgets, 

they are focusing on alternative engines for the cars of the future. 

At the IAA International Motor Show in Frankfurt in September 2009, 

several car manufacturers exhibited electric cars that are more 

or less ready to go into production. The Chevrolet Volt, the Mitsubishi 

i-MiEV and the Nissan Leaf will be available on the market sometime 

in 2010. 

Illustration: Think 

Illustration: Tesla 

Californian car manufacturer 

Tesla Motors demonstrates 

with its Roadster 

that electric cars 

can look really sporty. 

Already available: Think 

City, the electric car from 

Norway, has a range of 

180 kilometres and 

achieves a top speed of 

100km/h.h. 

Electric cars use energy far more effi ciently 

than vehicles with internal combustion 

engines. Although an electric car 

uses around 15 kWh of electricity to 

travel 100 kilometres, the decisive factor 

is the way in which this electricity has 

been generated. The Swiss electricity mix, 

more or less CO2-free, means that an 

electric car releases far less CO2 than even 

a fuel-effi cient internal combustion engine. 

CO2 emissions in transport can be 

reduced signifi cantly with electric cars 

and our low-CO2 electricity mix. 

The battery is what matters 

Axpo is proceeding on the assumption 

that electric mobility will gain a larg - 

er market share in the longer term. At 

present there are approximately 500 

electric passenger cars with marginal 

electricity consumption on the road 

in Switzerland. If just 20 % of all vehicles 

in Switzerland were electric, only 

around 1.6 terawatt hours of electricity 

would be needed (total current electricity 

consumption for Switzerland: 

58 terawatt hours). As electric mobility 

is likely to develop slowly, electricity 

consumption will also grow slowly and 

not in a single leap. 

But it is energy storage that is 

causing developers the biggest headaches 

– the battery systems in use at present 

are hugely expensive and heavy, and they 

limit the distance that a car can travel. 

Researchers around the globe are working 

feverishly to develop the battery of the 

future. The lithium-air battery is a beacon 

of hope – fi rst prototypes exceed the 

energy density of the present-day lithiumion 

battery eightfold. Another advantage 

lies in the fact that this technology 

uses atmospheric air, thereby saving 

weight. However, there are still many 

obstacles to surmount before such 

systems are ready for the market.

Public transport consolidates its position 

The number of people using public transport 

in Switzerland will continue to rise. 

According to the Swiss Federal Railways 

(SBB), reduced capacity on the roads, 

increasing price advantages over private 

cars and a growing interest in environmental 

issues will convince ever more 

customers to use the train in the coming 

years. Goods traffi c by rail is also set to 

expand its position – not least thanks 

to the completion of some major infrastructure 

projects in Switzerland. 

A substantially higher volume of 

passengers and a similar rise in goods 

traffi c will lead to a noticeable increase 

in electricity consumption. To this must 

be added the fact that the SBB is improv- 

Axpo is working on the 

assumption that electric 

vehicles will prevail in 

the long term. 

ing the quality of its services: higher 

speeds and greater comfort in carriages, 

for example thanks to air conditioning, 

also increase the demand for electricity. 

Although the SBB intends to intensify 

its efforts to save electricity, it is nevertheless 

clear that it will soon suffer 

a power supply shortage that needs to 

be dealt with in good time. 

Regional traffi c trends 

in million passenger kilometres 

0 10 000 

2004 

2005 

2006 

2007 

2008 

12 565,2 

13 830,1 

14 267,0 

15 134,4 

16 109,1 

In 2008, the SBB covered a total distance of 

16 billion passenger kilometres – 6.7 % more 

than in 2007. 

20 000 

Rail remains popular 

The Swiss are the European champions in 

rail travel. In 2008, the SBB covered a distance 

of 16 billion passenger kilometres – 

6.7 % more than in 2007. The SBB estimates 

that the volume of passengers will increase 

by 50 % by 2030, and on certain routes (e.g. 

Zurich-Berne, Basle-Zurich, Lausanne- 

Geneva, etc.) the increase could be as much 

as 65 %. Although goods traffi c is more 

economy-sensitive than passenger traffi c, 

the growth rate is still likely to be around 

50 %. A substantially higher volume of 

passengers and a similar rise in goods 

traffi c will lead to a noticeable increase 

in electricity consumption. 

It is still not quite clear what the charging station network 

of the future will look like. 

“Filling up” with electricity – where and how? 

It will be several years before electric mobility becomes a widespread 

reality. Two conditions must fi rst be met: apart from the development 

of effi cient, safe and attractively-priced batteries, an 

effi cient charging infrastructure is needed. 

The type of charging station depends on the properties of the 

batteries, such as charging time, quick recharging options and 

range. There are also other open issues, including the fact that there 

are no European or international standards for a charging infrastructure. 

Axpo believes that an isolated Swiss charging network 

would hardly be viable, and that companies from countries with 

a strong automobile industry have a responsibility to go ahead with 

the standardization of the charging infrastructure. 

In Switzerland, where most cars have parking spaces at home 

or at work, linking up to the existing household electricity network 

would be easy. But before charging stations can be built, it 

has to be clarifi ed what infrastructure is required in Switzerland. 

Illustration: Siemens


Electric cars come up against limiting physical 

factors. Their batteries are heavy and storage 

capacity is limited, which restricts the use 

of these cars to local trips. For the next twenty 

years we will still use mainly petrol and diesel 

in our cars.


50 – 51 








Annual report of Axpo Group 

Unsatisfactory performance 

in a challenging 

economic environment. 

Axpo Group has to report a substantial profi t contraction 

for the 2008/09 fi nancial year. This downturn was 

mainly caused by additional charges arising from re gulatory 

intervention, a recession-related slump in electricity 

demand and a weaker fi nancial result. On the 

other hand, Axpo traded successfully on the international 

electricity exchanges, and the production of electricity 

by its own power plants increased again, with production 

from new renewable energies such as biomass 

and small-scale hydropower plants showing a pleasing 

gain. Axpo once again invested substantial amounts 

in the maintenance and expansion of its power plant and 

grid capacities.

Axpo Group generated revenues of 

CHF 7 550 million in the 2008/09 fi nancial 

year which, at –0.6 %, is slightly 

less than in the previous year. Sales 

were negatively affected by the recession-driven 

slump in electricity demand 

and the related drop in prices. 

However, in spite of the economic 

downturn, Axpo delivered almost 1 % 

more electricity to its supply area, 

mainly as a result of a colder winter. 

The energy trading business repeated 

the previous year’s excellent performance. 

In the fi rst half of the year, 

EGL’s trading strategies enabled it to 

successfully exploit all opportunities 

in a market environment characterized 

by sagging prices and high volatility. 

Net profi t drops substantially 

year-on-year 

At CHF 568 million, Axpo Group’s profi 

t for the 2008/09 fi nancial year was 

down 43 % from the previous year. This 

profi t setback was mainly triggered by 

the high fi nancial burden caused by regulatory 

changes – in particular contributions 

to system services – and the impact 

of the fi nancial crisis on the real 

economy and the energy markets. The 

fi nancial result was also much weaker 

in the wake of the fi nancial crisis, while 

the costs for energy procurement and 

grid utilization were on a par with the 

previous year. 

Personnel and operating costs 

increased once again. Our intensifi ed 

efforts in international energy trading, 

the realization of large projects, growing 

challenges associated with the opening 

of the market and the expansion of our 

production capacities for new renewable 

energies generated higher costs. 

The commissioning of gas-fi red combined 

cycle power plants in Italy in accordance 

with established plans also 

contributed to this increase. The total 

number of employees rose by 11 % to 

4 092 full-time equivalents. 

Energy procurement 

in million kWh 

0 35 000 

62 772 

70 000 

Nuclear power plants: 22 276 

Hydroelectric power plants: 8913 

Conventional thermal power plants: 6880 

New energies: 237 

From third-party corporations and 

trading: 24 466 

Energy procurement by country 


13.7 % 

0.2 % 

12.4 % 

14.8 % 

2.7 % 

Total: 62 772 

Switzerland: 35 248 

Germany: 1678 

France: 7787 

Italy: 8614 

Austria: 102 

Other countries: 9343 

56.2 % 

Once again big investments 

in electricity supply 

Axpo made investments of CHF 510 

million in the reporting year. Most of 

these funds went towards the expansion 

of production facilities, investments 

in electricity production and replacement 

investments in the Swiss power 

plant fl eet and grid installations. 

Energy sales 


0 35 000 

Core market: 20 000 

Losses/own use: 315 

To third-party corporations and 

trading: 42 457 

Energy sales by country 


0.4 % 

28.5 % 

18.2 % 

Total: 62 772 

1.7 % 

5.5 % 

Switzerland: 28 697 

Germany: 3463 

France: 1081 

Italy: 17 891 

Austria: 263 

Other countries: 11 377 

45.7 % 

62 772 

70 000 

In spite of the economic 

downturn, Axpo sold 

almost 1 % more electricity 

in its supply area, mainly 

as a result of a colder winter.


52 – 53 








Axpo Group made investments 

of CHF 510 million 

in the reporting year. The 

lion’s share of the funds 

was used to invest in production 

facilities and to 

fi nance replacements and 

the expansion of the power 

plant fl eet and transmission 

grids. 

Burdened by a challenging 

economic environment, 

Axpo AG Group’s performance 

for the 2008/09 

fi nancial year was unsatisfactory. 

Consolidated 

revenues were up year-onyear, 

but the profi t for the 

period was substantially 

lower than in the previous 

year. 

Comprehensive information is 

available in the separate annual 

report of Axpo AG. 

Own energy production improves 

year-on-year 

In the 2008/09 fi nancial year, Axpo 

Group’s energy procurement dropped 

by 6.5 % from the previous year, primarily 

due to a sharp decline in purchases 

from third parties and procurement 

through trading. On the other 

hand, own production from hydroelectric 

and conventional (thermal) 

power plants as well as new energies 

was up 3.2 %. Hydropower production 

was up 2.6 % from the previous year, 

while nuclear energy production 

dropped 1.8 % year-on-year. 

Electricity production by the 

gas-fi red combined cycle plants in Italy 

and electricity generated from renewable 

sources posted the biggest 

growth at more than 24 % each. The 

growth recorded for new renewable 

energies was mainly driven by the 

acquisition of Axpo Tegra, the former 

Tegra Holz + Energie AG, and the 

commissioning of new plants for the 

generation of electricity from biomass 

fermentation and small-scale hydropower 

facilities. 

Outlook 

Axpo Group expects that the energy 

market paradigms will remain challenging 

in the 2009/10 fi nancial year. 

Given the uncertain economy, unstable 

regulatory conditions and stagnating 

prices in the domestic as well as the international 

energy markets, the energy 

business is unlikely to see any signifi cant 

improvement. Current projects to expand 

production and grid capacities will 

impact costs, and developments on 

the fi nancial markets are adding to the 

uncertainty. Against this background, 

Axpo Group is likely to fi nd it diffi cult 

to repeat its performance for the 

2008/09 fi nancial year. 

Annual report 

of Axpo AG Group 

Weighed down by a diffi cult economic 

environment, Axpo AG Group’s performance 

for the 2008/09 fi nancial year 

was unsatisfactory. The Group countered 

the negative impact of the energy 

and fi nancial market crisis by optimizing 

its operating and strategic expenses. 

At CHF 2702.6 million, the 

consolidated revenues of Axpo AG Group 

were up 1.5 % from the previous year 

(2007/08 fi nancial year: CHF 2661.8 million). 

Earnings before interest and 

taxes (EBIT), however, dropped sharply 

to CHF 384.6 million (previous year 

CHF 600.3 million). The balance sheet 

was also burdened by the negative 

fi nancial result of CHF –31.9 million after 

exceptionals. The main reason for 

this is that, despite the noticeable recovery 

of the fi nancial markets since 

spring, it has not yet been possible to 

completely eliminate the impairment 

losses of the Federal Decommissioning 

and Waste Management Funds for Nuclear 

Power Plants that were recognized 

in the previous year. The profi t for 

the period is CHF 314.8 million (previous 

year: CHF 546.5 million). This equals 

a substantial year-on-year decline of 

42.4 %. 

Trading & Sales division 

The Trading & Sales division implemented 

a far-reaching reorganization 

programme in the 2008/09 fi nancial 

year, aiming to adapt the organizational 

structure to the growing complex - 

ity of the international electric ity markets 

and to strengthen its specialist 

skills and know-how. Other benefi ts of 

the new structure include the elimination 

of duplication between the trading 

and sales teams and the improvement 

of the informative value of management 

information.

“Energy is needed every day.” 

Patricia Moya, 23, is doing an internship at the Frechdachs day nursery in Zurich. She would 

like to do an apprenticeship in this fi eld and to manage her own day nursery one day.

“Energy is, when I’m healthy.” 

Nelson Duarte, 30, is a construction worker at Walo Bertschinger AG and wants to advance to site foreman.

The balance group concept was introduced 

in Switzerland when the fi rst 

phase of the market liberalization entered 

into force on 1 January 2009. 

Axpo AG decided to assign all its supply 

areas to a single balance group. 

Currently, approximately one-third of 

the traditional electricity supplied in 

Switzerland is processed through the 

Axpo AG balance group, and more 

than half of all Swiss electricity suppliers 

belong to this balance group. 

Axpo AG has been successfully 

participating in the Swiss balancing 

energy market since 1 January 2009. 

Thanks to its diversifi ed production 

fleet, Axpo AG is well-positioned to 

provide system services. 

Axpo Vertrieb AG has been 

successfully marketing “Axpo Naturstrom” 

(natural electricity) for nine 

years. In the year under review, approximately 

14 000 households and 29 corporate 

customers have drawn almost 

100 million kWh of electricity from 

renewable energies, thus repeating the 

good result of the previous year. More 

than 80 producers generate this natural 

electricity in photovoltaic, biomass, 

small-scale hydropower and run-of- 

river power plants that do not receive 

any cost-covering remuneration for 

feed-in to the electricity grid. The customers, 

however, not only promote 

the use of electricity from renewable 

sources, but also contribute one cent 

per kilowatt-hour of electricity used to 

Axpo’s green electricity fund (“Axpo 

Naturstrom Fonds”). This is the only 

fund of its kind in Switzerland and 

supports technologies for generating 

electricity from renewable energies 

and improving energy effi ciency. This 

year the fund supported four projects, 

and a total of 30 projects have been 

funded since the fi rst contributions were 

paid out. 

Key fi gures for Axpo AG Group 

Electricity sales in million kWh 28 959 

Revenues in CHF million 2 703 

EBIT in CHF million 385 

Net profi t in CHF million 315 

Number of employees* 1 620 

* Average number of employees as of 30 September 2009 (expressed as full-time equivalents) 

Development of hydropower 

production 

Axpo AG’s hydropower production was slightly 

higher in 2008/09 than in the previous year and 

well above the long-term average. 

Development of hydropower procurement, 


4837 

5802 

5753 

6134 

6207 

0 3500 5699 

2004/05 

2005/06 

2006/07 

2007/08 


Arithmetic average 

7000 

In the past fi nancial year, Axpo Suisse 

AG was involved in a successful new 

business transaction. It concluded an 

agreement with the Coop retail group 

for the provision and coordination 

of various electricity-related services. 

This collaboration will be ex pan d ed 

in the coming years. 

Hydropower division 

With the exception of September, hydropower 

production was slightly above 

average for the entire past fi nancial 

year. Storage power plants with southern 

catchment areas benefi ted from the 

high rainfall south of the Alps, while 

Hydropower production 


With a share of total production of 17%, Axpo 

AG is one of the largest producers of hydropower 

in Switzerland. 

Share of hydropower procurement 

17 % 

83 % 

Hydropower procurement Axpo AG 

Hydropower procurement other companies 

Axpo AG restructured its 

Trading & Sales division 

to take account of the increasing 

complexity of 

the liberalized electricity 

market. All Axpo AG’s 

traditional electricity is 

allocated to a single 

balance group.


56 – 57 








Read everything about the 

Linthal 2015 expansion project 

at www.axpo.ch under 

“Hydro Energy/Knowledge/ 

Power plant projects”. 

At the end of 2008, Axpo, 

together with BKW, submitted 

two applications for 

general licences to replace 

the Beznau and Mühleberg 

nuclear power plants – a 

fi rst important step towards 

securing a climate-friendly 

and cheap supply of electricity 

for Switzerland. 

Production of nuclear power 

by Axpo AG in 2008/09 

Beznau Nuclear Power Plant is wholly owned 

by Axpo AG, while Axpo AG holds stakes of 25% 

and 22.8% respectively in the partner nuclear 

power plants at Gösgen and Leibstadt. Axpo AG 

is also the managing partner of Kernkraftwerk 

Leibstadt AG. Kernkraftwerk Leibstadt AG and 

Kernkraftwerk Gösgen-Däniken AG publish their 

own annual reports. 


2716 

2019 

Total: 16 795 

(Previous 

year: 16 963) 

5780 

6280 

EDF Park: power plant fleet 

Electricité de France 

KKB: nuclear power plant Beznau 

KKL: nuclear power plant Leibstadt 

KKG: nuclear power plant Gösgen 

the output from plants with northern 

catchment areas reached the long-term 

average. 

Axpo AG also invested in the 

expansion of domestic hydropower capacity 

in the 2008/09 fi nancial year. 

At present, the most important expansion 

project is Linthal 2015 with the 

1000 MW Limmern pumped-storage 

hydropower plant in the Limmernsee 

and Muttsee area. After Canton Glarus 

granted the building permit in July 

2009, the Axpo directors and the directors 

of the Linth-Limmern hydropower 

plant gave the green light for the largest 

hydropower project in Switzerland, 

which Axpo will complete in collaboration 

with Canton Glarus at a total cost 

of CHF 2.1 billion. 

Other projects in the reporting year: 

− Pumped-storage facility at Tierfehd, 

Canton Glarus: The new pumpedstorage 

facility commissioned in mid- 

May suffered serious damage to 

its motor and generator in July 2009. 

The repair work took several months. 

− Rupperswil-Auenstein power plant: 

The installation of the machine 

groups for the weir power plant has 

started. The plant will be commissioned 

in spring 2010. 

− Eglisau-Glattfelden power plant: 

As part of the complete renovation 

of the historic, listed Eglisau- 

Glattfelden power plant, work on 

the electro-technical systems has 

started. The fi rst machine was decommissioned 

in October 2008 and 

removed for overhaul. A further 

three machines will be overhauled 

by the end of the current fi nancial 

year. The overhaul of all seven machines 

in the power plant will continue 

until 2012. Axpo is making a 

huge effort to maintain the historical 

features of the old generator 

casings. 

To ensure reliable power plants with 

high availability, Axpo Hydropower is 

constantly carrying out maintenance 

and renovation work on all its facilities. 

The most important refurbishment 

projects of the past fi nancial year include 

the total overhaul of the Eglisau- 

Glattfelden power plant and the Sedrun 

underground machine aggregate centre 

at the Vorderrhein power plant, the 

replacement of the machine groups 

of the Bavona plant at the Maggia power 

plants, the construction of a gasinsulated 

circuit breaker at Forces Motrices 

de Mauvoisin, the upgrading 

of the corrosion protection for the pressure 

lines of ELIN SA, and the total 

over-haul of the process control system 

of Argessa AG. 

Nuclear Energy division 

At almost 17 billion kWh, the Nuclear 

Energy division produced more than 

half of Axpo AG’s electricity in the 

2008/09 fi nancial year. With its own 

nuclear power plants Beznau I and II 

and shareholdings of 22.8 % in the 

Leibstadt nuclear power plant and 25 % 

in the Gösgen nuclear power plant, 

Axpo AG owns more than one-third of 

the total net nuclear power output 

in Switzerland. In the 2008/09 fi nancial 

year, almost one-third of the Nuclear 

Energy division’s output was contributed 

by electricity purchases from 

French nuclear power plants. 

In the reporting year, all of 

Axpo’s own power plants and partner 

plants achieved their usual high output 

thanks to high load factors. The 

Nu clear Energy division is responsible 

for providing its own plants Beznau I 

and II and the Leibstadt nuclear power 

plant with nuclear fuel, transport and 

storage con tain ers as well as the necessary 

services.

Swiss electricity producers are mandated 

to continue to provide a secure, 

environmentally acceptable and economic 

supply of electricity. This is 

why the Axpo subsidiaries Axpo AG and 

Centralschweizerische Kraftwerke AG, 

together with BKW FMB Energie AG 

(BKW), submitted two applications 

for general licences to replace the nuclear 

power plants Beznau I and II 

and Mühleberg to the Swiss Federal Offi 

ce of Energy on 4 December 2008. 

These applications for general licences 

contain chapters on safety, security, 

environmental compatibility, a spatial 

planning report, a decommissioning 

concept, and the demonstration of 

feasibility for the safe disposal of all 

radioactive waste. 

This has started the political 

process as defi ned in the Nuclear Energy 

Act. The next steps involve the 

processing of the applications by the 

au thorities. It is expected that the 

Swiss electorate will vote on the applications 

for general licences to replace 

the nuclear power plants in an optional 

referendum in 2013. 

A large number of investments 

in retrofi tting and replacement projects 

in the past fi nancial year again 

guaranteed the safety and reliability 

of the nuclear power plants at a high 

level. These include the replacement 

and modernization of the safety systems, 

the overhaul of the process 

control systems for the outbuildings 

and the replacement of the baffl e 

bolts as well as intensive training courses 

for the employees and process 

improvements. 

New Energies division 

The New Energies division is responsible 

for implementing Axpo AG’s strategy 

regarding new renewable energies. 

It carries out relevant projects and 

invests in selected companies. The New 

Energy division’s portfolio also includes 

the provision of energy contracting 

services, i.e. services for energy 

supply systems. 

Expansion of new renewable energies at Axpo AG 

Production has been increased by 150 % compared to 2008. This productivity improvement was mainly 

achieved in the wood-fi red power plant in Domat/Ems, which commissioned another block. 


0 100 200 

30 

2006 2007 2008 

Production in million kWh 

Since 2006, Axpo AG has been rapidly 

building up a corporate network that 

was successfully expanded over the past 

fi nancial year and now incorporates 

investments in 25 companies. During 

the past fi nancial year this expansion 

included: 

− The acquisition of a 51 % stake in 

Axpo Genesys AG (former Genesys 

Biogas AG), Frauenfeld. 

− The restructuring of Axpo Holzenergie 

Group by the establishment of 

Axpo HE Holding AG (former Tegra 

Holding AG) and Axpo Holz und 

Energie AG (former Tegra Betrieb AG). 

− Strengthening of Axpo Kompogas 

AG (former Kompogas AG) by increasing 

existing investments and 

acquiring new investments. 

42 

67 

Axpo AG, CKW and BKW have 

established a development 

company called Resun AG. More 

information is available at 

www.resun.ch 

167 

2009 

New renewable energies electricity mix 

from Axpo AG 

About three-quarters of the electricity generated 

from new renewable energies by Axpo AG in 

the past fi nancial year were produced in woodfi 

red power plants. Electricity from small-scale 

hydropower and biomass fermentation supplements 

the new renewable energies electricity 

mix offered by Axpo AG. 


126 

Total: 167 

28 

Small-scale hydropower 

Biomass fermentation 

Biomass wood 

13


58 – 59 








With 167 million kWh of 

electricity produced by 

small-scale hydropower, 

biomass and biogas, 

Axpo AG has established 

itself as the largest producer 

of electricity from 

new renewable energies 

in Switzerland. 

More information is available at 

www.axpo.ch/kompogas 

Axpo AG grids 

Length of cables in km (confi guration) 

46 

60 

572 

0 20 

380 kV 

220 kV 

150 kV 

110 kV 

50 kV 

16 kV 

1048 

904 

More information on the national 

grid company Swissgrid is available 

at www.swissgrid.ch 

1414 

1500 

As part of its project business, Axpo AG 

builds facilities and power plants for 

itself as well as for third parties. In the 

reporting year, the following projects 

were implemented successfully: 

− Refurbishment of the Lotzwil hydropower 

plant and renovation of the 

small-scale hydropower facility at the 

Kollbrunn power plant. 

− Commissioning of three new facilities 

of Axpo Kompogas AG in Switzerland. 

− Successful conclusion of several 

projects by Axpo Contracting AG 

(formerly easyTherm AG) in the fi elds 

of indoor climate, process energy 

and district heating networks. 

− Construction and commissioning 

of two biogas plants by Axpo Genesys 

AG. 

Axpo Kompogas AG strengthened 

its position even further in the 2008/09 

fi nancial year. The focus fell on the 

construction of plants for third parties, 

in particular in other countries. 

Electrical Grids division 

Under the new Electricity Supply Act, 

ownership of the transmission grid 

must be unbundled with effect from 

the beginning of 2009 and transferred 

to the national grid company Swissgrid 

by 1 January 2013 at the latest. The 

Electrical Grids division implemented 

the fi rst step in this process in the 

2008/09 fi nancial year by transferring 

ownership of Axpo AG’s transmission 

grid to Nordostschweizerische Kraftwerke 

Grid AG (NOK Grid). 

The main regulatory topic was 

the determination of the tariffs for 

the use of the transmission grid and system 

services. After the electricity producers 

published their – partly much 

higher – tariffs for 2009 in May 2008, 

the Federal Electricity Commission 

ElCom initiated a review procedure. 

Axpo AG, as transmission grid owner 

and provider of system services, was 

also affected by this review procedure, 

and between August 2008 and March 

2009 it had to answer several enquiries 

by ElCom and submit large 

volumes of data. 

The publication of the tariffs in 

autumn 2008 triggered a heated debate. 

Politicians fi led a large number of 

motions and proposals targeting the 

electricity industry, most of which were 

approved by a large majority. Some 

people even called for the revision of 

the Electricity Supply Act. In reaction 

to these demands, the Federal Council 

revised the Electricity Supply Ordinance. 

The most important changes included 

the reduction of the capital 

earnings rate by 1 % for facilities that 

were commissioned before 2004, the 

capping of system services, the passing 

on of cost increases to power plants 

with a large output, and the introduction 

of a penalty of 20 % on synthetically 

valued grids. 

The Electrical Grids division developed 

a new tariff schedule for the 

110/50 kV grid that will be introduced 

in 2010. This is similar to the schedule 

for the transmission grid, and includes 

three price components, i.e. a basic 

price, a customer price and a unit price. 

The customer price will be based on 

the gross energy used instead of the net 

energy used. The gross energy includes 

all energy drawn by the end customer. 

The new tariff schedule allows Axpo 

AG to pass on the costs for the crossregional 

transmission grid to the 

cantonal and municipal utilities responsible 

for the costs in a transparent 

manner.


of CKW Group 

CKW Group increased its electricity 

sales by 3 % to 5584 million kWh in the 

2008/09 fi nancial year. Although electricity 

sales in its own supply areas 

tailed off as a result of the weak economy, 

CKW more than compensated this 

decline by increasing its sales in new 

supply areas and improving its optimization 

trading business by 26.5 %. 

Higher costs burden result 

In the reporting year, CKW Group’s revenues 

improved by 7.5 % to CHF 852 million, 

but earnings before interest 

and taxes (EBIT) shrank by 29.1 % to 

CHF 135.8 million. This was mainly 

due to higher electricity procurement 

costs and the assumption of system 

service costs in compliance with the 

new Electricity Supply Act. 

CKW Group earned CHF 106.6 million 

from the sale of its 20 % shareholding 

in Wasserwerke Zug AG. If the other 

exceptionals are taken into account, 

CKW Group posted an adjusted profi t 

of CHF 121.2 million, down 15.2 % 

from the previous year. The reported 

profi t is CHF 242 million. 

Security of supply takes top priority 

As the leading provider of energy 

services in Central Switzerland, CKW’s 

main priority is the secure, reliable 

and economic supply of electricity to 

its customers. To meet this obligation, 

CKW makes large investments in 

the security of supply. In the reporting 

year, it increased its investments in 

property and equipment by 38.8 % to 

CHF 127 million, most of which went 

towards the maintenance and reno vation 

of the grid infrastructure. 

Since 1980, the network load in CKW’s 

supply area has doubled, and in the 

same period CKW installed 17 500 new 

grid connections. 

Until 2020 CKW will invest more 

than CHF 2 billion in electricity supply, 

Key fi gures for CKW Group 


Revenues in CHF million 852 

EBIT in CHF million 136 

Net profi t in CHF million 242 

Number of employees* 1 422 


of which approximately CHF 1.5 billion 

will be used for replacing the Beznau 

and Mühleberg nuclear plants. In this 

way, CKW is securing the delivery of 

electricity to approximately 130 000 

customers and 180 000 employees at 

their workplaces in more than 15 000 

production and service companies. At 

the same time CKW creates much added 

value for Central Switzerland: it contributes 

around CHF 260 million per year 

to employees, the public sector and 

the regional business sector. Companies 

in Canton Lucerne alone receive orders 

from CKW every year for approximately 

CHF 48 million. 

Responsible tariff policy 

CKW is aware of its responsibilities towards 

its business location in these 

diffi cult economic times and will not 

increase its electricity prices before 

autumn 2010. During the reporting year, 

CKW already refrained from passing 

on additional costs of CHF 27 million 

caused by regulatory and statutory 

requirements, and also waived another 

CHF 6 million on the tariffs. This 

burdened the profi t by a total of 

CHF 33 million. 

CKW’s commitment to its business 

location is also exemplifi ed by 

its energy effi ciency initiative. This 

initiative was launched in collaboration 

with the Lucerne Cantonal Bank 

and the canton al Environment and 

Energy Agency and will run until the 

end of 2010. CKW is providing CHF 

5 million to help home owners replace 

Security of supply requires 

an effi cient grid infrastructure. 

CKW invests more 

than CHF 70 million per year 

in the maintenance and 

renovation of its grid infrastructure. 

The network load 

has doubled since 1980, 

and CKW has installed 

17 500 new grid connections. 

CKW spends about 

CHF 260 million per year 

on salaries, the public 

sector and the regional 

business sector in Central 

Switzerland. Companies 

in Canton Lucerne alone 

receive orders for 

CHF 48 million.


60 – 61 








More information on green 

power from Uri is available at 

www.greenpoweruri.ch 

their outdated heating systems with 

a modern heat pump. This initiative is 

expected to trigger CHF 35 million in 

investments by the regional business 

sector. 

New concession agreement in force 

Under the new Electricity Supply Act, 

grids and electricity purchases must be 

separated. As the existing concession 

agreements between CKW and the Lucerne 

municipalities do not take account of 

this provision, these agreements violate 

current federal law. CKW and the 

Association of Lucerne Municipalities 

drafted a new concession agreement 

which will enter into force on 1 January 

2010. By end of December 2009, 

62 of 79 municipalities had approved 

the new agreement. 

Production availability 

In the open electricity market, the ability to produce own electricity on a sustainable and fl exible basis 

is growing in importance. CKW Group’s power availability rate is between 87 % and 160 %. 

0 100 200 300 400 0 100 200 

% 

million kWh 

Winter 

2004/05 

Summer 

2005 

Winter 

2005/06 

Availability 

Supply 

Production of nuclear energy 

Production of hydropower 

Summer 

2006 

Winter 

2006/07 

Summer 

2007 

Winter 

2007/08 

Summer 

2008 

Winter 


CKW Group cannot guarantee that its own production will cover the requirements 

in Central Switzerland and must procure energy from other sources. 

The production of CKW Group is greater than the requirements in Central Switzerland. 

The surplus will be sold on the market. 

Summer 


Investments in renewable energies and 

sustainability 

CKW expanded its commitment to renewable 

energies in the year under 

review. Elektrizitätswerke Altdorf AG 

commissioned the biomass power 

plant of Green Power Uri, in which it 

holds a stake of 51 %. Green Power 

Uri recycles biowaste, using it to produce 

green power, heat and natural 

fertilizer. CKW purchased a CHF 4 million 

stake in BiEAG Biomasse Energie 

AG, which will build the fi rst biomass 

combined heat and power plant in 

Canton Zug by the end of 2010. This 

plant’s output of 2.5 million kWh per 

year will be enough to deliver electricity 

to around 500 households. The 

plant will also use a wood chip furnace 

to produce heat for approximately 

650 households. The ground-breaking 

ceremony for a run-of-river plant in 

Ettisbühl took place on 24 September 

2009. In future, Steiner Energie AG will 

produce approximately 4.5 million 

kWh of renewable energy on the banks 

of the Kleine Emme. This is enough 

to cover the energy requirements of 

around 1000 households. A trial run 

will start in autumn 2010. 

CKW’s activities in the fi eld of 

renewable energies are based on a 

2007 analysis that quantifi ed the potential 

for generating electricity from 

renewable sources in the supply area 

of CKW Group at 100 million kWh until 

2015. This electricity, generated 

mainly from hydropower and biomass, 

could cover the consumption of approximately 

30 000 households. 

CKW continues to bet on sustainability, 

as demonstrated by its new 

administrative building in Rathausen, 

which will be ready for occupation in 

summer 2010. This is the fi rst administrative 

building in Central Switzerland 

built according to the Minergie-P® 

standard. The new administrative building 

will use around 30 % less energy 

than conventional buildings.

“Energy is love of life.” 

Marco Erni, 21, has fi nished his apprenticeship with the Zurich public transport service and 

wants more. He is looking forward to attending a university of applied sciences.


62 – 63 








EGL traded successfully 

from its regional trading 

centres, even though both 

the economic situation and 

the market environment 

were diffi cult. Additional 

branches were opened in 

Northern and Southern 

Europe as well as in the UK. 

Key fi gures for EGL Group 

Leading trainer of apprentices 

in Central Switzerland 

In 2009, CKW had a total of 1422 fulltime 

equivalent positions in 80 dif ferent 

professions. In the reporting year, 39 

new positions were created. There are 

266 apprentices, and the ratio of apprentices 

to employees is around 18 %, 

which not only puts CKW ahead of the 

Swiss average of 7.5 %, but also confi rms 

its position as the leading trainer of 

apprentices in Central Switzerland. 


of EGL Group 

The 2008/09 fi nancial year was overshadowed 

by the impact of the fi nancial 

crisis on the real economy and the 

energy markets. This was manifested 

on the one hand in higher credit and 

market risks in the energy trading 

business, although EGL’s protection 

mechanisms worked well, and on the 

other hand in a drop in the real eco nomy’s 

demand for energy, which 

affected EGL in some trading regions. 


Gas sales in million kWh 1 520 

Revenues in million kWh 3 990 

EBIT in million kWh 330 

Net profi t in million kWh 187 

Number of employees* 746 


Net profi t well below previous year 

In this diffi cult market environment, 

EGL nevertheless managed to improve 

its gross margin slightly by 4 % yearon-year 

to CHF 810.4 million. However, 

as a result of writedowns due to the 

planned sale of the Energy Plus power 

plant project, a negative fi nancial result 

and losses on its natural gas trading 

activities, the profi t shrank 41 % year-onyear 

to CHF 186.7 million. The fi rst 

half of the year saw signifi cant outfl ows 

of cash following plunging prices for 

secured energy transactions, but in 

the second half of the year, EGL managed 

to signifi cantly improve its cash 

fl ow. The cash fl ow from operating activities 

was CHF 174.5 million for the 

full fi nancial year, which is 41 % less 

than in the previous year. EGL’s equity 

ratio improved slightly to 31.1 %, which 

is still solid. 

Good trading profi t 

In the Energy Trading & Origination division, 

EGL consistently pursued its 

strategy and traded successfully from 

its regional trading centres. This is 

a positive development, especially in 

view of the weak economy and the 

diffi cult market environment, which 

was initially dominated by a rapid 

price collapse and high volatility, followed 

fi rst by a short-lived and slight 

upswing and then by a sideways movement 

of prices and lessening volatility. 

EGL posted excellent results for its assetbacked 

trading activities and for trading 

between Italy and Switzerland as 

well as in the Iberian and Nordic markets. 

In Italy, the most important individual 

market, the very successful trading 

and origination business more than compensated 

the weaker results in the 

retail business. In the reporting year, 

EGL once again expanded its trading 

activities, including the establishment 

of a new trading centre in the UK and 

the opening of a new origination offi ce 

in Finland. It also initiated the opening 

of origination offi ces in Brussels and 

Düsseldorf, from where EGL will expand

its business activities to the Benelux 

countries and Germany. 

Forging ahead with power plant 

projects 

In the 2008/09 fi nancial year, EGL 

forged ahead with its power plant projects. 

The commissioning work 

for the SE Ferrara gas-fi red combined 

cycle power plant in Italy was completed. 

This power plant will presumably 

go into commercial operation in 

June 2010, once measures are in place 

for recycling the synthesis gas that 

accumulates at the site. With this, EGL 

will reach its objective of 2000 MW 

own production capacity in Italy, which 

is why it decided, while reviewing the 

previously announced consolidation 

and diversifi cation of its production 

portfolio in Italy, not to build the Energy 

Plus gas-fi red combined cycle power 

plant in Salerno itself, but to sell the 

project instead. 

Construction work on a planned 

EGL wind farm with a capacity of 66 MW 

in the Campania region of Italy has 

started. The commissioning of this 

wind farm is planned for the second 

quarter of 2011. With its acquisition of 

51.6 % of the Swedish wind farm developer 

HS Kraft AB in February 2009, 

EGL also secured access to a series of 

wind power projects in Southern Sweden. 

Loss on natural gas sales 

EGL continued to expand its natural 

gas business in the 2008/09 fi nancial 

year. The Gas Supply & SEE division 

expanded its natural gas procurement 

portfolio, among other things by extending 

the partnership with Gazprom 

Export. In addition to deliveries to its 

own gas-fi red combined cycle power 

plants in Italy, EGL also intensifi ed its 

sales activities. This unfortunately 

resulted in a loss, mainly as a result of 

the challenging economic environment 

and the demand-driven decoupling of 

natural gas and oil prices. 

EGL’s trading regions 

EGL’s energy trading business is organized into decentralized trading regions: Central and Eastern 

Europe, Southeastern Europe, Northern Europe, Iberia, Italy and Switzerland as well as the UK. These 

regions follow the Regional Energy Markets concept as defi ned by the European Union in a fi rst step 

towards the realization of a uniform European energy market. 

EGL trading regions with trading centres 

Northern Europe 

Great Britain 

Iberia 

Central and Eastern Europe 

Southeastern Europe 

Italy and Switzerland 

Madrid 

London 

Genoa 

Dietikon 

Oslo


64 – 65 








Comprehensive compliance information 

is available in Axpo’s 

sustainability report. 

In order to meet customer 

demands for highly available 

systems and to enable 

the processing of ever 

more data, Axpo Informatik 

will open a new computer 

centre. This centre will 

meet the most stringent 

demands. 

The business with liquefi ed natural gas 

(LNG) did very well. EGL procured additional 

volumes of LNG in the reporting 

year, which it sold to customers in 

the Spanish downstream market. With 

a view to the growth in the LNG sector 

that can be expected in the medium 

and long term, EGL also expanded its 

resources. 

In the year under review EGL 

also engaged in some preparatory 

work to ensure that the future potential 

in the natural gas business can be 

exploited, including the establishment 

of subsidiaries in Southeastern Europe 

and the Trans Adriatic Pipeline project. 

Switzerland: objection against 

ElCom valuation 

In the context of the partial liberalization 

of the electricity market in Switzerland 

for customers with an annual 

consumption of more than 100 000 kWh, 

effective as from 1 January 2009, EGL 

prepared and implemented the necessary 

measures. The required adjustments 

to technical facilities, systems 

and processes were fi nalized on time 

and implemented successfully on 

1 January 2009. 

The fi nal valuation of EGL’s transmission 

grid in Switzerland, which is 

needed to determine the grid utilization 

fees for the Swiss transmission grid, 

is still outstanding. EGL believes that the 

grid valuation carried out by the state 

regulatory authority ElCom is too low. 

EGL Grid AG therefore fi led an appeal 

against the ElCom valuation with the 

Federal Administrative Court in order 

to safeguard the interests of its owners 

and maintain its value as a business. 

176 full-time positions created 

As a consequence of the growth strategy 

of the past few years and the expansion 

of its business activities in the reporting 

year, EGL created 176 new fulltime 

positions. 

EGL also adapted its internal 

structures and processes to keep up with 

its growth. It started with the implementation 

of an advanced IT strategy, 

which consistently follows its business 

model and has been designed to ensure 

that the IT resources can meet 

the demanding requirements of a trans- 

European trading company. 

In the year under review, EGL 

also intensifi ed its compliance programme. 

Managers and employees were 

given in-depth training in EGL’s compliance 

culture and they are obliged to 

follow the applicable principles and 

rules. 


of Axpo Informatik AG 

As IT partner for the energy sector, 

Axpo Informatik AG primarily provides 

technical and commercial IT services 

for Axpo and the associated cantonal 

utilities. The company can look back 

on a successful 2008/09 fi nancial year: 

the customer portfolio expanded to 

include Kernkraftwerk Leibstadt AG, 

which will in future rely on Axpo Informatik 

AG for its IT infrastructure. 

Thanks to this addition and the expansion 

of its range of services, Axpo 

Informatik AG improved its sales by 

24 % to CHF 87.5 million. The workforce 

numbered 246 full-time equivalents 

at the end of September 2009, compared 

to 183 at the end of September 2008.

Added security with new computer 

centre 

In the past fi nancial year, the IT Infrastructure 

Services division successfully 

migrated Angst+Pfi ster AG, the fi rst 

customer who does not belong to Axpo 

Group, and the Axpo subsidiary EGL 

Italia S.A. to the Axpo Informatik service 

platform. It also provided highly 

available platform services to EGL 

and set up the IT infrastructure for new 

EGL branches such as those in the UK 

and Poland. On the heels of the growth 

enjoyed by Axpo AG’s New Energies 

division, Axpo Informatik integrated 

additional sites and companies into 

its IT environment, including Axpo HE 

Holding AG and Axpo Kompogas AG. 

In order to meet customer demands 

for highly available systems 

and to enable the processing of ever 

more data, Axpo Informatik investigated 

the possibility of setting up a new 

computer centre in the past fi nancial 

year. This computer centre will be built 

in the current fi nancial year by Axpo’s 

partner Green.ch, and will meet the most 

stringent demands of security and 

sustainability. 

Enhanced sustainability thanks 

to IT applications 

As part of the SAP@EGL project, the IT 

Applications division of Axpo Informatik 

AG implemented new SAP systems 

for salary administration, fi nance and 

controlling, workfl ows and e-fi les at EGL 

in the past fi nancial year. The systems 

were not only completely overhauled 

technically, but many processes were 

also automated, with some of them 

now being totally automatic with no 

paper trail. 

Key fi gures for Axpo Informatik AG 

Revenues in CHF million 87 

Number of employees* 225 


Innovation for the liberalized energy 

market 

The IT Consulting division developed 

innovative new services in the reporting 

year. The secure e-mail service, which 

has been available since spring 2009, is 

a state-of-the-art solution for customer 

e-mail security. IT Consulting pays special 

attention to IT innovation, with the 

business advantages of IT and technical 

planning and IT concepts taking centre 

stage. Axpo Informatik uses new technological 

trends such as SmartMetering 

and SmartGrids to develop new IT-based 

services. 

Growth needs stronger organizational 

structures 

By establishing the Finance & Business 

Services division, Axpo Informatik 

bundled responsibility for accounting 

and controlling, project offi ces, as 

well as licence, inventory and procurement 

management in a single division 

with the goal of optimizing all support 

processes for its internal Axpo customers 

as well as its external customers. 

Axpo Informatik uses new 

trends such as Smart- 

Metering and SmartGrids 

to develop new IT-based 

services.


If we are in favour of climate protection, we must 

also support nuclear energy. There is no other 

technology on the horizon that will allow us to cover 

our rising electricity needs reliably and economically 

without harming our climate. Nuclear power is an 

energy source with a future.

Nuclear energy 

How we meet the rising energy demand 

in a climate-friendly manner.

Electricity from nuclear energy is a supporting pillar of the 

Swiss electricity supply system. As this not only keeps 

electricity prices low but also ensures low CO2 emissions, it 

is clear to Axpo that these benefi ts must be secured for 

the future – in Switzerland and worldwide. 

Hybrid cooling towers for Beznau and 

Mühleberg 

The replacement nuclear power plants at 

Beznau and Mühleberg will have increased 

output. Moreover, they will no longer need 

river water for cooling. Instead, cooling will 

take place by means of hybrid cooling towers 

which, at a height of approximately 60 

metres, are substantially lower than “traditional” 

cooling towers such as the 150 metrehigh 

tower at Gösgen. They therefore do 

not spoil the landscape to the same extent. 

The second major benefi t lies in the fact 

that they release hardly any visible steam 

because the steam is mixed with dry, 

warm air. 

From nuclear power plant to recycling 

When they are removed from the reactor after 

three to four years’ service life, spent 

fuel rods contain only 4 % radioactive waste, 

while the remaining 96 % of the fuel can 

still be used as nuclear fuel. The re-usable 

nuclear fuel is separated from the highlevel 

radioactive waste at reprocessing 

plants, such as the plant at La Hague in 

France, and is available again for electricity 

generation. 

The fi ve Swiss nuclear power plants have an annual output of 

around 25 billion kilowatt-hours of electricity, thereby cover - 

ing 40% of Swiss electricity production. Nuclear energy is not 

only extremely competitive – current production costs amount 

to approximately 6 cents per kilowatt-hour of electricity – but 

it is also very climate-friendly. If we consider the CO2 output 

for the whole cycle from the mining of the uranium to the disposal 

of the radioactive waste, nuclear energy comes second 

only to hydropower. If the electricity produced in Switzerland 

by nuclear energy were to be generated in modern gas-fi red 

combined cycle power plants, the same volume of CO2 would 

be released into the air as is currently emitted by all the car 

traffi c in Switzerland. 

Replacement nuclear power plants urgently needed 

Switzerland is likely to see a power supply shortage from 2020 

onwards, when the oldest nuclear power plants at Beznau and 

Mühleberg will reach the end of their operating lives and important 

electricity import contracts with France will start running 

out. The foreseeable supply shortage can only be countered 

by replacing the existing nuclear power plants. 

As Axpo would like to secure this cost-effective and 

low-CO2 supply of electricity for its customers in Switzerland, 

it submitted the relevant applications for general licences at 

the end of 2008. Advanced third-generation reactors with even 

better safety features, greater effi ciency and operating profi tability 

will be used in the replacement nuclear power plants 

to be built on the present sites. 

Uranium reserves will last for a long time 

According to the Organization for Economic Cooperation and Development 

(OECD), the known uranium reserves that are commercially 

recoverable will last for another 100 years at current consumption 

rates. The map shows the distribution of these reserves. 

The speculative reserves for conventionally-mined uranium will 

last for more than 300 years. 

Source: OECD/IAEO, “Red Book”, 2007 

329 

339 

Canada 

USA 

157 

Niger 243 

Brazil 

Namibia 176 

Ukraine 

135 

284 

Kasakhstan 

72 

378 

172 

Uzbekistan 

46 Mongolia 

44 Jordan 

49 China 

49 India 

South Africa 

Australia 

725 

Russia

Deep geological repository disposal concept 

We know how we can dispose of and store radioactive waste in Switzerland. 

The Swiss disposal concept provides for deep geological 

repositories to ensure the long-term safety of people and the environment. 

The Federal Council recognized the feasibility of this 

concept in 2006, and mandated the National Cooperative for the Disposal 

of Radioactive Waste (Nagra) to evaluate suitable sites. 

The repositories will be constructed at a depth of several hundred 

metres in suitable rock formations. In the repository itself, 

a system of staged engineered safety barriers will isolate the waste. 

These barriers include, for example, suitable packaging of the 

waste and backfi lling of the disposal tunnels. Once the monitoring 

phase is over, the repository and access shafts will be backfi lled 

and sealed, although the contents must remain retrievable. 

Deep geological repository for highly radioactive waste 

Access tunnel 

Disposal tunnels for high-level 

waste and spent fuel rods 

Test facility/rock laboratory 

More information is 

available at www.nagra.ch 

Shaft 

Disposal question has been technically solved 

If nuclear energy is to be expanded in a responsible manner, 

deep geological repositories for radioactive waste should be 

built as soon as possible. Because of the relatively low volume 

of waste, it is technically possible and economically feasible 

to lock the radioactive waste away safely in a deep geological 

repository for long enough. In 2006, the Federal Council expressly 

recognized the technical feasibility of a deep geological 

repository. Before being committed to a deep geological repository, 

high-level radioactive waste must be kept at an intermediate 

storage site for about 40 years. In Switzerland, the 

waste is kept at the Zwilag intermediate storage site in Würenlingen 

in the Canton of Aargau, where low-grade radioactive 

waste is also prepared for storage in a deep repository. 

Part of the climate solution 

Like renewable energies, nuclear energy also harbours great 

development potential. The UN climate body, the Intergovernmental 

Panel on Climate Change (IPCC), lists nuclear energy 

alongside renewable energies as a key technology for alleviating 

the climate problem. 

The Federal Council has stated its support for nuclear 

energy in conjunction with the expansion of renewable energies. 

Axpo and its partner BKW are implementing these guidelines 

by investing in both renewable energies and nuclear 

energy. 

Illustration: Nagra 

Disposal tunnels for long-life 

intermediate-level waste 

Pilot facility 

Greenhouse gas emissions from European 

and Swiss electricity systems 

in g CO2-equivalent/kWh 

3,04 

3,0 

3,9 

15,9 

45,4 

59,8 

0 

432,0 

500 

“Imagine being able to 

burn coal ash ten times 

over. This is more or 

less the potential harboured 

by the use of 

existing uranium in advanced 

reactors.” 

Tony Williams, Head of Nuclear Fuel 

Axpo AG Baden 

903,0 

Beznau nuclear power plant 

Run-of-river power plant 

Storage power plant 

Wind power plant 

Geothermal power plant 

Photovoltaics 

Gas-fired combined cycle power plant 

Coal-fired power plant 

1000 

Source: EPD Beznau and environmental 

assessment of current and future electricity 

supply options. Hirschberg et al., Paul Scherrer 

Institute


Nuclear energy is a technology of the past. It 

harbours a residual risk that can never be 

excluded. And we dare not burden future generations 

with highly radioactive waste. This 

would be a high price to pay for the protection 

of our climate.


68 – 69 

Energy business 


AXPO 

AG 

Group 

2007/08 

AXPO 

AG 



CKW- 


2007/08 

CKW- 



EGL 


2007/08 

EGL 



Other + 

consolidation 

1) 

2007/08 

Other + 

consolidation 

1) 


Total 

2007/08 

Energy sales 

in million kWh 28 959 29 764 5 584 5 422 29 030 32 925 – 801 – 983 62 772 67 128 

Income statement 2008/09 (condensed), in million CHF 


AXPO 

AG 


2007/08 

AXPO 

AG 



CKW- 


2007/08 

CKW- 



EGL 


2007/08 

EGL 



Other + 

consolidation 

1) 

2007/08 

Other + 

consolidation 

1) 


Total 

Total 

2007/08 

Net sales 

Other operating 

2 660 2 624 818 755 3 958 4 167 2 – 54 7 438 7 492 

income2) 43 38 34 38 32 27 3 4 112 107 

Revenues 2 703 2 662 852 793 3 990 4 194 5 – 50 7 550 7 599 

Energy procurement, 

grid utilisation and 

cost of goods 

Material and 

– 1 757 – 1 564 – 402 – 325 – 3 147 – 3 386 49 18 – 5 257 – 5 257 

third party supplies – 111 – 103 – 27 – 30 – 16 – 18 – 10 – 6 – 164 – 157 

Personnel expenses 

Other 

– 232 – 216 – 147 – 138 – 150 – 136 – 46 – 43 – 575 – 533 

operating expenses – 204 – 145 – 80 – 60 – 234 – 171 44 42 – 474 – 334 

Total operating 

expenses – 2 304 – 2 028 – 656 – 553 – 3 547 – 3 711 37 11 – 6 470 – 6 281 

Earnings before 

interest, tax, 

depreciation and 

amortisation (EBITDA) 

Depreciation and 

399 634 196 240 443 483 42 – 39 1 080 1 318 

amortisation – 14 – 34 – 60 – 48 – 113 – 50 – 45 – 8 – 232 – 140 

Earnings before 

interest and tax (EBIT) 385 600 136 192 330 433 – 3 – 47 848 1 178 

Share of profi t 

of associates 29 31 7 8 2 13 5 4 43 56 

Financial result – 32 53 101 2 – 84 – 31 – 184 10 – 199 34 

Profi t before tax 382 684 244 202 248 415 – 182 – 33 692 1 268 

Income tax expenses – 67 – 138 – 2 – 33 – 61 – 100 6 6 – 124 – 265 

Profi t for the period 315 546 242 169 187 315 – 176 – 27 568 1 003 

Attributable to: 

Axpo Holding 

shareholders 321 549 238 166 187 315 – 250 – 108 496 922 

Minority interests – 6 – 3 4 3 0 0 74 81 72 81 

1) Other + consolidation includes Axpo Holding AG and Axpo Informatik AG, and the effects of consolidation. 

2) Includes changes in inventories and capitalised production costs. 

Total

Balance Sheet 30.9.2009 (condensed), in million CHF 


AXPO 

AG 


2007/08 

AXPO 

AG 



CKW- 


2007/08 

CKW- 



EGL 


2007/08 

EGL 



Other + 

consolidation 

1) 

2007/08 

Other + 

consolidation 

1) 


Total 

2007/08 

Non-current assets 7 393 7 211 1 240 1 103 2 465 2 486 – 840 – 983 10 258 9 817 

Current assets 2 069 1 497 422 470 4 323 4 694 515 1 037 7 329 7 698 

Total assets 9 462 8 708 1 662 1 573 6 788 7 180 – 325 54 17 587 17 515 

Equity 4 489 4 137 1 178 1 084 2 083 2 090 – 155 – 187 7 595 7 124 

Minority interests 12 17 42 38 28 20 487 551 569 626 

Liabilities 

Total equity 

4 961 4 554 442 451 4 677 5 070 – 657 – 310 9 423 9 765 

and liabilities 9 462 8 708 1 662 1 573 6 788 7 180 – 325 54 17 587 17 515 

Cash fl ow statement 2008/09 (condensed), in million CHF 


AXPO 

AG 


2007/08 

AXPO 

AG 



CKW- 


2007/08 

CKW- 



EGL 


2007/08 

EGL 



Other + 

consolidation 

1) 

2007/08 

Other + 

consolidation 

1) 


Total 

Total 

2007/08 

Cash fl ow from 

operating activities 

Net investments in 

651 545 182 154 175 296 – 107 21 901 1 016 

non-current assets2) – 328 – 210 – 20 – 100 – 162 – 244 0 – 13 – 510 – 567 

Free cash fl ow 323 335 162 54 13 52 – 107 8 391 449 

Cash fl ow from other 

investing activities 

Cash fl ow from 

– 173 – 169 – 66 32 33 – 33 183 59 – 23 – 111 

fi nancing activities – 142 – 164 – 52 – 43 – 97 102 – 392 158 – 683 53 

Foreign exchange 

differences 0 0 0 0 – 17 – 18 0 0 – 17 – 18 

Change in cash 

and cash equivalents 8 2 44 43 – 68 103 – 316 225 – 332 373 

1) Other + consolidation includes Axpo Holding AG and Axpo Informatik AG, and the effects of consolidation. 

2) Excluding loan receivables. 

Total


70 – 71 








Glossary 

Balancing energy 

Energy needed in the electricity delivery 

system to deal with unforeseen load 

fl uctuations and power plant outages. 

Balance group 

A virtual structure that groups together 

electricity suppliers and customers; 

the costs that arise from balancing 

the energy that is generated and the 

energy that is consumed are offset 

within the same balance group. 

Base load energy 

The energy that must be provided by 

electricity suppliers throughout the 

day (24 hours) in order to cover basic 

demand. The demand for base load 

energy in Switzerland is around 6000 

megawatts (MW) in summer, and around 

8000 MW in winter. 

Cost-covering remuneration for 

feed-in to the electricity grid 

The cost-covering remuneration for 

feed-in to the electricity grid (CRF) 

has been in force since 1 January 2009 

as a measure to promote renewable 

energies. It is raised by a surcharge of 

a maximum of 0.6 cents per kilowatthour 

on the transmission costs of the 

high-voltage grids and paid out to 

producers of electricity from renewable 

sources (hydropower up to 10 megawatts, 

photovoltaics, wind power, 

geothermal energy and energy from 

biomass and biomass waste). 

Deep geological repository 

A repository for the safe disposal of 

highly radioactive waste in deep and 

stable geological formations. In Switzerland, 

the Federal Nuclear Energy 

Act requires the disposal of all radioactive 

waste in deep geological repositories. 

Electricity Supply Act (StromVG) 

This federal act governs the liberalization 

of the electricity market in Switzerland. 

Energy effi ciency 

The percentage of total energy that is 

consumed in useful work and not 

wasted (e.g. room of a house). Energy 

effi ciency is said to increase when 

the same output is achieved with lower 

energy expenditure – for example, 

by using energy-saving light bulbs. 

Environmental Product Declaration 

(EPD) 

An EPD is an environmental declaration 

for products. The aim is to 

provide verifi able information on the 

environmental impact of products. 

Extra-high voltage grid 

The Swiss extra-high voltage grid, 

around 7000 kilometres in length, 

connects the power plants in the 

Swiss plateau and the Alps with the 

conurbations. It also connects Switzerland 

with Europe. Currently owned 

by the major electricity producers, it 

will be transferred to Swissgrid by 

1 January 2013 at the latest. 

Federal Electricity Commission (ElCom) 

ElCom is the independent state regulatory 

authority for electricity. It 

monitors compliance with the electricity 

supply laws and energy laws. 

Geothermal energy 

Using the heat of the earth to generate 

energy. Geothermal energy is a renewable 

energy, as the earth’s heat reserves 

cannot be exhausted and no 

waste gases or climate-damaging CO2 

are released by the generation of energy. 

Kilowatt-hour (kWh) 

The standard unit of electrical energy. 

A watt-hour (Wh) is the energy that 

a machine with an output of one watt 

uses or produces in one hour. 

1 watt = 1 joule per second. 

1000 watt-hours (Wh) = 1 kilowatt-hour 

(kWh); 1000 kWh = 1 megawatt-hour 

(MWh); 1 000 000 kWh = 1 giga watthour 

(GWh); 1 000 000 000 kWh = 

1 terawatt hour (TWh)

Minergie 

A registered quality label for new and 

refurbished buildings, where specifi c 

energy consumption is used as the 

main indicator quantifying the required 

building quality. The Minergie 

Association is the worldwide owner of 

the Minergie trademark. 

New renewable energy 

This includes all renewable energies 

except large-scale hydropower. 

For Switzerland these are: small-scale 

hydropower, solid biomass, biogas, 

geothermal, wind and solar energy. 

Packaged combined heat and power 

plant (packaged CHP) 

A plant based on the principle of a 

combined heat and power cycle that 

produces both electricity and heat. 

Peak-load energy (peak load) 

The volume of energy that must be 

provided in addition to the base load 

to cover the daily peak consumption 

periods. Power plants that can be easily 

switched on and off, such as pumpedstorage 

power plants, are particularly 

suited to this purpose. 

Pumped-storage power plant 

A hydropower plant with a reservoir 

at a higher altitude used for the production 

of peak-load energy. During 

periods when surplus electricity is 

produced, for example during the night, 

water is pumped up to a reservoir at 

a higher altitude. When electricity demand 

increases, the water is released 

to drive the turbines. 

Renewable energy 

Energy that is not used up despite 

continuous use, but is constantly 

renewed. Conventional large-scale 

hydropower is an example. 

Residual fl ows 

If water is siphoned off from a watercourse 

for use by a run-of-river power 

plant, appropriate minimum amounts 

of water (residual fl ows) must be maintained 

in the streambed. This constant 

water run-off is also called weir water. 

Swiss Federal Nuclear Safety 

Inspectorate ENSI 

The national supervisory authority 

responsible for the nuclear safety and 

security of Swiss nuclear facilities. 

ENSI is an independent body constituted 

under public law and the successor 

body to the Swiss Federal Nuclear Safety 

Inspectorate (HSK). 

Swissgrid 

Swissgrid is the national grid company 

responsible for the safe operation of 

the Swiss extra-high voltage grid. The 

shareholders of Swissgrid are the leading 

domestic electricity producers, 

including Axpo AG. 

System services 

Additional services provided by grid 

operators to enable the reliable supply 

of electricity and ensure grid stability. 

This includes in particular balancing 

energy. In Switzerland, Swissgrid is responsible 

for the procurement of system 

services. 

Weir power plant 

A small power plant that uses the 

run-off water below a dam to generate 

electricity.


72 – 73 








Axpo’s power plant fl eet in Switzerland 

Including shareholdings and purchase rights. The shareholdings in percentages in the plants below are listed from page 60. 

• Hydroelectric power plants 

• Nuclear power plants 

• Gas-fi red power plant 

• Small-scale new energies plants 

106 

96 

87 

95 

54 

55 

71 

64 

53 

52 

72 

70 

104 

102 

116 

107 

63 

51 

14 

111 

20 

12 

2 

67 17 

18 79 

16 

19 

73 

10 74 

11 

75 

4 

80 1 59 

7 

15 

61 

105 

76 

119 

78 86 

89 

118 

62 

3 5 

112 

6 

9 

60 114 

98 

101 

93 68 

65 103 

66 

100 

110 

117 

120 

121 91 

77 

41 

113 90 26 115 

94 

122 25 84 

40 

81 

108 


85 

97 

23 

39 

99 

24 

38 

50 

49 

48 

13 

22 

21 

69 

46 

32 

35 

47 

34 

33 

30 

42 

45 

44 

43 

88 

37 

83 

36 

29 

31 

92 

28

Conventional power plants 

• 1 KKB Kernkraftwerk Beznau 

• 2 KKL Kernkraftwerk Leibstadt AG 

• 3 KKG Kernkraftwerk 

Gösgen-Däniken AG 

• 4 GTD Gasturbine Döttingen 

• 5 KWRü Kraftwerk Rüchlig 

• 6 KRA Kraftwerk 

Rupperswil-Auenstein AG 

• 7 KWWB Kraftwerk Wildegg-Brugg 

• 9 KWBZ Kraftwerk Bremgarten-Zufi kon 

• 10 HKB Hydraulisches Kraftwerk Beznau 

• 11 WKB Wehrkraftwerk Beznau 

• 12 AWAG Aarewerke AG 

• 13 KWS Kraftwerk Schaffhausen AG 

• 14 RKN Rheinkraftwerk Neuhausen AG 

• 15 ERAG Elektrizitätswerk Rheinau AG 

• 16 KWE Kraftwerk Eglisau-Glattfelden 

AG 

• 17 RKR Rheinkraftwerk Reckingen AG 

• 18 RADAG Rheinkraftwerk 

Albbruck-Dogern AG 

• 19 RKS Rheinkraftwerk Säckingen AG 

• 20 KRS Kraftwerk 

Ryburg-Schwörstadt AG 

• 21 KWG Kraftwerk Göschenen AG 

• 22 KWW Kraftwerk Wassen AG 

• 23 KWSa Kraftwerk Sarneraa 

• 24 EWA Kraftwerke Elektrizitätswerk 

Altdorf AG 

• 25 KWEm Kraftwerk Emmenweid 

• 26 KWRa Kraftwerk Rathausen 

• 28 EKW Engadiner Kraftwerke AG 

• 29 KHR Kraftwerke Hinterrhein AG 

• 30 KWZ Kraftwerke Zervreila AG 

• 31 ALK Albula-Landwasser 

Kraftwerke AG 

• 32 KVR Kraftwerke Vorderrhein AG 

• 33 KWI Kraftwerke Ilanz AG 

• 34 HSAG Hydro Surselva AG 

• 35 KWF Kraftwerke Frisal AG 

• 36 KWR Kraftwerke Reichenau AG 

• 37 KSL Kraftwerke Sarganserland AG 

• 38 KLL Kraftwerke Linth-Limmern AG 

• 39 KWFä Fätschbachwerk 

• 40 KWLö Kraftwerk am Löntsch 

• 41 AKW AG Kraftwerk Wägital 

• 42 OIM Offi cine Idroelettriche 

di Mesolcina SA 

• 43 CAL Calancasca AG 

• 44 TEC Tecnicama SA 

• 45 ELIN Elettricità Industriale SA 

• 46 Ofi ma Offi cine Idroelettriche 

della Maggia SA 

• 47 Ofi ble Offi cine Idroelettriche 

di Blenio SA 

• 48 Aegina Kraftwerk Aegina AG 

• 49 EM Electra-Massa SA 

• 50 KWM Kraftwerke Mattmark AG 

• 51 Argessa Argessa AG 

• 52 Lienne Lienne SA 

• 53 GD Grande Dixence SA 

• 54 LMSA Lizerne et Morge SA 

• 55 FMM Forces Motrices de 

Mauvoisin SA 

New energies power plants 

Axpo Kompogas AG (composting plants) 

• 59 Otelfi ngen 

• 60 Rümlang 

• 61 Bachenbülach 

• 62 Niederuzwil 

• 63 Langenthal 

• 64 Aarberg 

• 65 Jona 

• 66 Kompogas Utzensdorf AG, 

Utzensdorf 

• 67 Kompogas Bioriko AG, Klingnau 

• 68 Ökopower AG, Ottenbach 

• 69 Greenpower Uri AG, Altdorf 

• 70 BV Kompostieranlage 

Önsingen AG, Önsingen 

• 91 Samstagern 

Elaqua AG (small-scale hydroelectric plants) 

• 71 Moutier 

• 72 Lotzwil 

• 73 Untersiggenthal 

• 74 Obersiggenthal 

• 75 Windisch 

• 76 Kollbrunn 

• 77 Schönenberg 

• 78 Bürglen 

• 79 Holzkraftwerk Kleindöttingen 

• 80 Solaranlagen Obersiggenthal 

• 81 Windturbine Schaber 

Wyssachen 

Axpo HE Holding AG (wood-fi red power plant) 

• 83 Domat/Ems 

Axpo Contracting AG 

(contracting for waste recycling plants) 

• 84 Emmenbrücke (1 site) 

• 85 Stans (2 sites) 

• 86 Amriswil 

• 87 Givisiez 

• 88 St. Gallen (3 sites) 

• 89 Oberaach 

• 90 Lucerne (3 sites) 

• 92 Davos 

• 93 Muri 

• 94 Littau 

• 95 Marly 

• 96 St-Légier 

• 97 Stansstad 

• 98 Zurich 

• 99 Sarnen 

• 100 Sursee (2 sites) 

• 101 Wangen b. Dübendorf 

• 102 Ittigen b. Bern 

• 103 Jona 

• 104 Berne (2 sites) 

• 105 Kloten 

• 106 Lausanne (2 sites) 

• 107 Wimmis 

• 108 Horw 

• 109 Ennetbürgen 

• 110 Rain (ComRo Rohner, 

formerly Kriens) 

• 111 Fruthwilen 

• 112 Oftringen 

• 113 Malters 

• 114 Brüttisellen 

• 115 Adligenswil 

• 116 Duggingen 

• 117 Cham 

• 118 Andwil 

• 119 Lipperswil 

• 120 Root 

• 121 Hirzel 

• 122 Wolhusen 

• Hydroelectric power plants 

• Nuclear power plants 

• Gas-fi red power plant 

• Small-scale new energies plants


74 – 75 








Axpo Group publications 

Axpo has created various online platforms and publications to inform the public 

of its activities, objectives and results and to foster the dialogue with its 

stakeholders. These publications can be ordered from Axpo or can be accessed 

on Axpo’s website: 


Financial Report 2008 | 09 Axpo Holding AG 

The future is our responsibility 

Axpo – delivers energy 

Financial report of Axpo Holding AG 

Axpo Group provides comprehensive 

information on its annual fi nancial 

results in the fi nancial report. 


“Media/Downloads/Publications” 

Corporate brochure 

of Axpo Holding AG 

Find out about the many facets of 

Axpo Group, one of the leading energy 

providers in Switzerland. 




Axpo Holding AG Sustainability Report 2008 | 09 

Annual Report 2008 | 09 

Extract from consolidated fi nancial statements Axpo AG 

Energy dialogue 

Axpo fosters a dialogue and looks for 

the best solutions together with all 

stakeholder groups. 

www.axpo.ch/energiedialog 

Axpo online 

Comprehensive and up-to-date information 

on Axpo on the Internet. 

www.axpo.ch 

Sustainability report 

of Axpo Holding AG 

In the sustainability report, which is 

included with this annual report, 

Axpo reports on the attainment of its 

objectives as regards economic effi - 

ciency, social responsibility and ecology. 



Annual reports of the Group companies 

Comprehensive information on the 

activities, highlights and challenges of 

the 2008/09 fi nancial year of the subsidiaries 

Axpo AG, Centralschweizeri sche 

Kraftwerke AG (CKW) and Elektrizitäts- 

Gesellschaft Laufenburg AG (EGL). 


“Group/Organisation”

Publishing details 

Published by 


Parkstrasse 23 

5401 Baden 

Tel. + 41 56 200 37 77 

Fax + 41 56 200 43 50 

www.axpo.ch 

Concept and design 

schneiter meier külling AG 

8001 Zurich 

www.smek.ch 

Texts 

Dynamics Group 

8008 Zurich 

www.dynamicsgroup.ch 

Photos 

Gerry Amstutz, Franz Rindlisbacher 

8047 Zurich 

www.gee-ly.ch 

www.franzrindlisbacher.ch 

Printing 

Linkgroup 

8008 Zürich 

www.linkgroup.ch 

Language versions 

This Annual Report is published in German, 

English and French. The German-language 

version is binding. 

Pro/contra photos 

Page 20: Fields in Thurgau 

Page 30: Ufenau Island in the Lake of Zurich 

Page 48: Motorway exit at Vichy 

Page 66: City of Glarus 

Note regarding forward-looking statements: 

This document may contain certain forward-looking 

statements regarding the business activities, 

development and profi tability of Axpo Holding AG. 

Such statements involve many risks, uncertainties 

and other important factors which mean that actual 

developments and results could deviate substantially 

from the statements contained in this 

document. Apart from its statutory obligations, 

Axpo Holding AG does not accept any obligation 

to update forward-looking statements. 

This annual report was printed CO2-neutrally on 

chlorine-free bleached FSC-certifi ed paper.


Parkstrasse 23 | CH-5401 Baden 

T + 41 56 200 37 77 | F + 41 56 200 43 50 

info@axpo.ch | www.axpo.ch DR0090

Annual report 2008/09 - Axpo Group

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