Swiss energy group Axpo extends nuclear power contract with France

Switzerland has committed to phase out nuclear but the Ukraine war and energy shortage concerns have prompted debate about the future role of nuclear power. Keystone / Caroline Blumberg

Switzerland’s largest energy company Axpo has extended a purchase agreement with the French electricity group EDF for the long-term supply of nuclear power.

Energiefinanzierungs AG (ENAG), of which Axpo has a stake with other Swiss companies, extended the corresponding contract with Electricité de France (EDF) from 2025 to 2039, according to an Axpo press releaseExternal link on Monday.

+ What do the Swiss think about nuclear power?

With the extension of the supply contract, 180 megawatts of power or around 1,500 gigawatt hours of electricity per year will flow into Switzerland from 2025 onwards. That corresponds to the average annual consumption of 350,000 four-person households.

From 2025, the Axpo Group will hold 36.5% of ENAG’s shares (divided between Axpo Solutions and CKW) and will thus be entitled to 65.7 megawatts of capacity until 2039.

“The extension of the contract is important for the security of supply in Switzerland, as the power is available around the clock – even during possible shortages in winter,” Axpo wrote.

Phasing out nuclear

This is one of several long-term energy contracts Axpo has with France. Axpo purchases almost six terawatt hours of electricity per year from France – about 10% of Switzerland’s annual consumption.

Switzerland has committed to phase out nuclear energy and is in the process of closing its five nuclear reactors following a 2017 decision prompted by safety concerns after the 2011 nuclear disaster in Fukushima, Japan.

However, the Ukraine war and associated energy shortage concerns have prompted debate about the role of nuclear power in the energy mix. Nuclear power currently accountsExternal link for 20% of Swiss gross energy consumption. Domestically, the largest share of electricity production comes from hydropower (62%) followed by nuclear power plants with 29%.