EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Research & development, patents and licences

Preparing the electricity systems 1.6.2.2 of the future Energy transition towards a low-carbon economy in Europe primarily involves reducing the carbon footprint of electricity systems. This involves addressing new challenges for electrical systems: managing the intermittence of production sources that use renewable energies ■ and pushing back the limits of their inclusion in electrical systems; integrating new uses of electricity by optimising the production mix and grid ■ requirements; developing network transmission infrastructures and optimising electricity traffic ■ in Europe; optimising decentralised energy systems (demand-side management, ■ decentralised generation and storage, etc.) by integrating them into larger scale energy management systems; adapting the coordination of electricity systems in order to address a reduction in ■ inertia in a context of increasing use of power electronics in order to factor in patterns of use and new production sources; and, more generally, optimising investments in production and storage facilities, ■ in network infrastructures and energy efficiency and green energy solutions, having regard to the interest of the public and the competitiveness of electricity, without there being any significant increase in bills for customers, while also maintaining the quality and reliability of the electricity system. The trend towards more intelligent electricity systems, also known as smart grids, is one of the pivotal points in transitioning towards a low carbon energy economy in Europe. It raises not only technical, economic and regulatory issues, but over and above the integration of renewable energies and new uses, issues relating to the management of information for the various users of the grid and the need to control costs. R&D’s work can be divided into three main categories. The first category of work aims to anticipate the impacts of energy transitions and the emergence of decentralised energy systems on the development and management of electricity systems: energy transitions: this work involves developing an overview of changes in the ■ fundamental aspects of demand for power and new electricity uses, potential disruptions in supply, energy mix choices and the conditions for implementing energy transition scenarios (financing, technologies and infrastructures) with a view to reaching carbon neutrality by 2050. In 2018 R&D undertook market research with the Provence-Alpes-Côte d’Azur region in France to identify ways to encourage the emergence of a low-carbon, resilient and thriving local economy enjoying competitive power prices; market design and the emergence of local energy markets: this work involves ■ contributing to the definition of the future ground rules for the electricity and gas markets in the context of intermittent energy sources such as wind and solar, electric mobility and distributed energy systems. The second category of work aims to improve the performance of electricity grids: R&D is working to improve the management of distribution network assets. ■ Studies are being carried out into the lifespan of materials. Predictive maintenance techniques are also being tested. These combine detailed knowledge of the behaviour of components and data and image processing techniques, with the aim of optimising maintenance cycles and detecting early signs of equipment failure; in 2018, R&D continued testing a new generation of software to connect, ■ manage and administer instrumentation & control systems, network management systems and distributed energy resources. The tools are based on recent standards developed by the International Electrotechnical Commission (IEC) for high interoperability between machines and components. The first versions of the embedded software used to manage distributed energy resources and substations will be delivered in early 2019 to be integrated into the industrial systems of the Group's entities and subsidiaries. Advanced cybersecurity tools for terminal equipment and central administration and management systems are also under development;

Under EDF's smart factory initiative, work has intensified on the operating safety of industrial electrical networks and a range of Software as a Service for industrial customers is being developed. This work is a component of a broader project destined to produce a range of offers of the EDF group for the “Smart Factory”, in line with the objectives outlined in the Factory of the Future initiative launched by the government. As for client relations, to allow residential clients to be aware of their electricity use and its budgetary impact between two bills, EDF has designed and developed a prototype range of features compatible with smart meters, including an application for smart phones and PCs that allows consumers to estimate their bill, taking into account their own particular characteristics, seasonal variations in their electricity consumption, and their past consumption history. EDF's R&D is also studying ways to combat energy poverty. In 2018 the “Don d’énergie” [gift of energy] initiative was launched with the Abbé Pierre Foundation to enable people to give to energy poor households via their smartphones. R&D continued to develop a new offering of energy services this time combining electricity supply, control of electric heating by connected thermostat and the digital customer interface for a new EDF subsidiary. That same year also saw the launch of new customer interfaces, using techniques linked to artificial intelligence, in particular chatbots and augmented reality. In sustainable territories, to address the needs of cities that are seeking to optimise infrastructures and their management (e.g. for transport, waste treatment, buildings, energy production, and networks) and aspiring to become sustainable, “smart cities”, R&D is developing urban engineering resources for EDF sales staff in France, such as the study performed for the Nice urban district. R&D particularly supported work organised around the Local Energy Pilot concept. R&D renewed its partnership with the city of Singapore to develop decision-support tools for town planning. With these tools, collaboration with the Singaporean authorities covers the following areas: energy efficiency of buildings and their air-conditioning systems as well as household waste collection. It also includes the possibility of addressing issues such as the incorporation of photovoltaics into buildings, green roofs, and local water recycling. This modelling is coupled with innovative 3D visualisation tools at the level of individual buildings or a neighbourhood, allowing the impacts of planning decisions, for instance on greenhouse gas emissions, to be studied. The experience gained resulted in a service which is being tested with a property developer in Moscow. Electric mobility is an important dimension of sustainable cities: electric transport opens up the prospect of a fundamental transformation of modes of travel. Battery storage is the key technology for electric transport. R&D research in this respect consists, firstly, in characterising battery safety and performance in the lab, and secondly, in innovating in the realm of breakthrough technologies with the potential to deliver significant improvements in battery life and/or cost. R&D is also studying non mobile applications for the reuse of batteries that were originally used in electric vehicles (combining them with renewable energies, system services, etc.). In the longer term, R&D will adopt a similar approach for the hydrogen (H2) technologies that are used for mobility, including electrolysers and charging stations, as well as fuel cells for heavy transport and light vehicles. More generally, the goals of R&D activities in the field of electric vehicles (EVs) and rechargeable hybrid vehicles (RHVs) are as follows: supporting the development of this new use (monitoring initial experimentation; ■ standardisation; innovations with the potential to remove technological barriers such as wireless charging); managing integration with the electricity system (smart charging, dimensioning ■ and location of charging stations); developing mobility service resources (fleet supervision platform, charging station ■ operation software, smart charging stations for residential customers and resources to advise local authorities on mobility); preparing the integration of electric vehicles into local energy systems, with the ■ study of vehicle to grid (V2G) and vehicle to home (V2H) models. In particular, through partnerships with leading car manufacturers; developing alternative mobility solutions, such as batteries and fuel cells, for ■ heavy road and water transport that tailor batteries to vehicle types and uses and that encompass modes of charging electric and hydrogen vehicles; developing Mobility as a Service by preparing the way for self-driving cars. ■

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I Reference Document 2018