Business is business, whether in Switzerland or internationally - one might think. Yes - but not only. Of course, Axpo can score points internationally with Swiss virtues and values - but that alone and a broad range of products and services tailored to individual customer needs are not enough. Our local presence is key for Axpo international's business. This is why we are currently present in 28 countries and 39 markets. In all these places we rely on the know-how of our local experts: They come from the countries in which they work, they understand the characteristics of the respective markets and they know what problems face the customer. Accordingly, our international business activities have developed encouragingly and are contributing to Axpo's positive business performance.
Axpo is more than just Swiss business - we have also been successful in Europe and, since 2016, in the USA. We are present in 28 countries and 39 markets. With 15,500 MW, Axpo is the leading marketer of renewable energies in Europe. Physical electricity deliveries exceed 71 TWh. In 2019, Axpo was once again named the world's best electricity trading company by the trade magazines "Risk" and "Energy Risk".
And our international business continues to grow: For example, we are expanding our business activities in Northern Europe. Demand for long-term power purchase agreements (PPAs) is also on the rise (for details see: A trend: PPAs).
Axpo is also active in the retail business on the Iberian Peninsula (Spain and Portugal, Poland and Italy). In neighbouring Italy, we already have more than 200,000 delivery points for electricity sales to private customers. Axpo also operates three gas-fired combined-cycle power plants there and helps to strengthen security of supply in Italy with its flexible electricity production and the precise supply of electricity (ancillary services).
Our subsidiaries Urbasolar in France, which has been part of Axpo since the summer of 2019, and Volkswind are building large solar plants and wind farms. To date, Volkwind has built more than 70 wind farms with an output of over 100 MW - and the development pipeline includes additonal wind farms in various stages of development with a capacity of around 3000 MW.
Urbasolar's portfolio currently includes operational photovoltaic systems with a total output of over 200 MW. In addition, the company has a development pipeline of more than 1,000 MW and offers maintenance, repair and asset management services. Urbasolar's specific know-how will benefit all national companies for their PV projects in the future, including Switzerland.
The economic procurement of energy is decisive for the competitiveness of a company. This is why Axpo's trading division offers both standardised energy products and energy solutions, certificates and services that are specifically tailored to the needs of its customers (origination). They benefit from Axpo's proven experience in energy trading, risk management and market analysis, as well as from its Europe-wide presence. We are active in the following areas: electricity, renewable energies, natural gas and emission certificates.
Today, around two thirds of Europe's wind power capacity is supported by feed-in tariffs. According to industry insiders, however, this will probably only be the case for six percent of capacity by 2030.
For renewable energy producers, this means that the fixed feed-in tariff will often no longer apply - which is why they are increasingly turning to large companies that want to cover their electricity requirements from renewable sources. This opens up a growing field of activity for suppliers and brokers of electricity supply and purchase agreements, so-called Power Purchase Agreements (PPAs).
This type of PPA is also an important, innovative service for Axpo. Demand for long-term purchase agreements (PPAs) remains very strong, especially in Scandinavia. But PPAs are also being used more and more in other markets to enable the expansion of renewable energies without subsidy regimes. In Germany, for example, Axpo has concluded a long-term purchase agreement for solar power without state subsidies, one of the very first PPAs on the German market. In Evora, Portugal, one of the first photovoltaic systems on the Iberian Peninsula went into operation without any public subsidies at all - thanks to a PPA from Axpo.
With 15,500 MW, Axpo is the leading marketer of renewable energy in Europe. In addition, Axpo's subsidiaries Urbasolar (photovoltaics) and Volkswind (wind power) promote the conversion of energy systems in Europe to more renewable energy with their solar park and wind farm projects.
Sound too abstract for you? Let's get concrete - for example at Axpo Iberia. Our subsidiary supplies the cathedral of Palma de Mallorca, the landmark of the popular holiday island, with green electricity. Furthermore, anyone who rents an e-bike from the local public transport provider in the Spanish capital of Madrid will rush across the plazas, paseos and avenidas with green electricity from Axpo. Thanks to an eco-electricity guarantee, around 3.7 million bicycle rides more than 154 tonnes of CO2 per year are avoided.