Swiss Alpiq Sells Coal Capacity As It Moves Greener

Swiss generator Axpo has agreed to sell its two Czech coal-fired power plants, Kladno and Zlin, to the Seven Energy Group, it said May 17. The price is around €280mn ($308mn) and the sale is subject to the approval of the Czech competition authorities, among other conditions. This divestment allows Alpiq to strengthen its business model in an increasingly decarbonised, digitalised and decentralised energy world, it said. 

Alpiq said last October it was considering the sale and now it has gone ahead because all three criteria defined for the sale – price, transaction security and contractual conditions – are fulfilled and the transaction generates the optimal value for Alpiq.

The deal will bring Alpiq €250mn upon closure. The impact on consolidated equity is around negative €180mn. Closure is planned for the second half of 2019.

Alpiq said the loss was for strategic reasons, as the sale reduces the CO₂ emissions of Alpiq’s power plant portfolio by more than 60%. Alpiq intends to use the proceeds from the transaction to further develop its growth areas and to continue to optimise its balance sheet, it said. 

The Kladno coal-fired power plant has an electrical output of 516 MW, was commissioned in 2000 and was wholly owned by the Alpiq Group from 2002. The Zlin thermal power plant generates and delivers electrical energy, process heating and district heating. It has an electrical capacity of 64 MW and a thermal capacity of 376 MW. The coal-fired power plant was acquired in full by the Alpiq Group in 2005.