EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

More generally, the Group is working to optimise the performance of all of its thermal fleet. Closure of the oil-fired fleet EDF decided to permanently shut down the Aramon thermal plant on 1 April 2016 and the Porcheville and Cordemais unit 2 thermal plants in the spring of 2017 as they had been scarcely used over the past number of years. EDF also permanently shut down the last oil-fired unit (Cordemais 3) in the spring of 2018. odernising the thermal generation fleet with natural gas combined cycle turbines EDF commissioned the first Combined Cycle Gas Turbine (CCGT) plant in France at Blénod in 2011, then two CCGT plants at Martigues in 2012 and 2013 followed by a next-generation CCGT plant at Bouchain in 2016 in partnership with General Electric. This modernisation of the thermal generation fleet reduces its atmospheric emissions of CO 2 , nitrogen oxides and sulphur oxides. The CCGTs in Martigues are the result of the repowering of former oil-fired units, a part of whose facilities, such as the steam turbine, the condenser and the water treatment facilities, were reused. The repowering of a unit of this capacity is a first in Europe. The installed capacity of the Martigues site is 930MW and the return is over 50%, markedly higher than the return from coal-fired thermal units, for example. The CCGT plant at Bouchain is equipped with General Electric's new high-capacity “9HA” turbine. The innovative 9HA CCGT delivers improved capacity (600MW achievable in under 30 minutes) and return (over 60%, versus an average return for a standard CCGT of 57-58%) and offers good environmental performance with CO 2 emissions of around 360g/KWh on average, one-third of those of the old neighbouring coal-fired plant shut down in 2015. Under specific operating conditions it generated a record return of 62.22%. As a prototype it underwent testing from when it was commissioned in the spring of 2016 to when ownership was transferred from General Electric to EDF in December 2017. The facility operated steadily in 2018 (5,630 hours) and generated 2.6TWh. Evolution of the environmental regulatory framework Today, EDF’s thermal power plants are operated within the context of regulations that apply to installations classified for environmental protection purposes (Installations classées pour la protection de l’environnement – ICPE), as well as regulations relating to greenhouse gas emissions and a specific regulation for air quality (see section 1.5.6.1 “General regulations that are applicable to the environment, health, hygiene and safety”). In 2018, EDF’s thermal power plants in mainland France emitted 6.4 million tonnes of CO 2 (9.5 million tonnes in 2017) for a net electricity generation of about 11TWh (16TWh in 2017). The CO 2 content per kWh generated by EDF’s thermal power plants in mainland France in 2018 is 579g/kWh net i.e. the lowest CO 2 footprint in EDF's entire thermal history (590g/kWh net in 2017). This decarbonisation of EDF's thermal kWh is the direct result of the ramp up of the share of CCGT plants in EDF's thermal generation mix, which contributed over 62% of the production of the thermal generation fleet in 2018 (compared with 56% in 2017). It is to be noted that in 2010, the CO 2 content per kWh generated by EDF's thermal fleet in mainland France was still more than 900g CO 2 /kWh net. In 2018, EDF's thermal generation fleet in mainland France also emitted 1.8kt of SO 2 , 4.6kt of NO x and 0.03kt of dust. Per kWh generated, polluting emissions from EDF's thermal plants have fallen compared with 2010 by four times for NO x , by over ten times for SO 2 and by over twenty times for dust. These drastic reductions in emissions were made possible by the shutdown of the oldest thermal plants, the renovation and installation of smoke treatment equipment using the best techniques

available at the most recent plants, the use of low sulphur fuel and the commissioning of low pollution natural gas combined cycle turbines. The environmental performance of the thermal fleet in mainland France is fully in keeping with the objectives set out in the new Sustainable Development policy of the EDF group signed in June 2018 and in particular: reduce CO 2 emissions of the EDF group in line with the path defined by the ■ Group in order to reach 30 million tonnes in 2030 (i.e. - 40% between 2017 and 2030, Corporate Social Responsibility Goals no. 1 of the EDF group); reduce the EDF group's SO 2 , NO x and dust emissions in the air by 50% between ■ 2005 and 2020. Generation and technical performance 1.4.1.4.3 Thermal generation in 2018 amounted to 11TWh with a lower level of operation than in 2017 given the stagnating consumption in France. In 2018, coal units supplied 3.9TWh, CCGT plants 6.9TWh and oil-fired units 0.2TWh. Minimising unplanned outages is the essential aim for facilities such as thermal plants, used for mid-merit and peak generation. The priority for these means of generation required on a variable basis all year round is to ensure system security by ensuring maximum reliability and availability. The reliability of the thermal fleet was confirmed in 2018 and meets European standards. The fleet’s adaptability to a sustained level of operation was demonstrated. The response rate achieved by combustion turbines to requests from optimisation services and from RTE was very good. In a tense balance between supply and demand, the combustion turbines fully played their role in maintaining the system’s safety. Decommissioning of shutdown units EDF has planned all of the decommissioning operations on its thermal fleet units which were shut down or whose shutdown is scheduled. The provisions for these operations have been made in an amount that corresponds to the cost of decommissioning all of the units being operated and the clean-up of the sites (see section 6.1 “Consolidated financial statements at 31 December 2018”, note 30 to the consolidated financial statements for the year ended 31 December 2018). In 2018, EDF continued the decommissioning work on sites that had been definitively shut down. Renewable energy generation 1.4.1.5 Renewable energy (1) (hydropower, wind, solar, biomass, geothermal, marine etc.) has seen robust growth worldwide. The EDF group is now the renewable energies leader in Europe and specifically the leading supplier of hydropower in the European Union; hydropower generation represents the Group’s most important renewable energy, with an installed capacity of 23GW and 301 (2) large dams in the world. The Group also plays a role in the rise of competitive sectors, primarily wind and solar. Hydropower is the renewable energy leader in the world, with an aggregate installed capacity estimated at 1,271GW (3) , of which 119GW of storage capacity through pumping. It has significant prospects for development in certain regions, even though it is close to its maximum operating potential in many developed countries. According to the IEA, from 2018 to 2022, hydropower is expected to account for about 13% of new capacity. The combined installed onshore wind capacity reached 495GW (4) worldwide (of which 161GW in China) compared with 453GW a year before (of which 147GW in China).

1.

Renewable, or “green” energies, are derived from natural resources that are replenished quickly enough to be considered non-depletable in human terms. (1) Counting done in 2018, according to the French classification (Decree 2015-526) relating to class A and B dams (with a height exceeding 10 metres). Number of dams in gross, (2) regardless of the equity interest of EDF group in these dams. Number of dams in net: 270. Source of hydraulic capacities worldwide: Renewable capacity statistics 2018, International Renewable Energy Agency (IRENA) – March 2018. (3) Source of onshore wind power capacity worldwide: International Renewable Energy Agency (IRENA) – March 2018 (4)

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EDF I Reference Document 2018