Swiss energy company Axpo and Nestle have entered into a power purchase agreement (PPA) for output from the Mauvoisin hydropower plant in the canton of Valais.
The PPA, runs from the start of 2022 until the end of 2026, and Nestle will be supplied with almost 100 gigawatt hours (GWh) of electricity per year from Mauvoisin.
This corresponds to the cumulative electricity demand of Nestle’s factories in Basel, Konolfingen, Wangen, Henniez, Orbe, Broc and Sofinol.
Eugenio Simioni, CEO Nestle Switzerland, said: “Nestle’s climate goal of achieving net zero by 2050 includes decarbonizing all our operations.
“The supply of 100% renewable electricity is part of this commitment.
“Thanks to this agreement, we know exactly where the green electricity that Axpo delivers to us comes from. This traceability and proximity give even more meaning to our actions.”
Unlike many other PPAs on international scale, the agreement inked by Axpo and Nestle is not linked to a newly built renewable power plant, but to an existing one.
With the decision to phase out the nuclear power plants in the country, it is important for Switzerland that hydro power plants, which provide around 60% of the country’s electricity, remain viable for as long as possible.
Such long-term contracts help secure the selling price and can thus extend the lifecycle of hydropower plants.
Axpo’s Mauvoisin reservoir was built between 1951 and 1958 at an altitude of 2000 metres in the Val de Bagnes in Valais.
Its 250-metre high arch dam is one of the highest in Europe and attracts numerous visitors to its nature trail every year and the reservoir is one of the largest in Switzerland.
One year ago, Axpo closed the very first PPA ever in Switzerland for the AlpinSolar plant at Lake Muttsee.