EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

At the end of 2018, the cumulative investment (2014-2018) already carried out amounted to €1,911 million, for 15.6 million Linky meters installed (including those used in the experiment), of which over 13.7 million open to all services. See also section 1.5.3.2 “French legislation: the Energy Code”. Foster energy transition Concurrently, Enedis is conducting large scale testing of a number of solutions to provide a greatly modernised network to consumers and companies. This work covers the operation of low- and medium-voltage networks, the integration of renewable energies and electric vehicles, storage management, voltage stability, etc. The challenge for the distributor is to support energy transition while developing the networks at the lowest cost for society. Thanks to new technologies, a more detailed and responsive oversight is possible, based on a better understanding of consumption, generation and the state of the network. This “intelligence” makes it possible to avoid over-investment by adjusting it to consumption peaks, while guaranteeing the reliability of the network, pursuant to Enedis’ double public service objective of performance and security. The projects already completed have yielded results in areas such as innovation for the network, flexibility and the integration of renewable energies. In 2017, Enedis also proposed technical solutions for individual and collective self-consumption tested under real conditions in multi-family housing and commercial buildings, Enedis has continued the industrialisation of cutting-edge solutions in smart grids for the implementation of a “foundation network” by 2018. This concerns all the components of the network with digital technologies in the source control stations (PCCNs, or Digital Command and Control Stations, which provide central management of the network's transmission automation and FARs, or Functions for Automation of the Network, which facilitate management of the insertion of electricity from renewable sources), the distribution stations (HVA/LV Smart stations), the sensors on the network and all the information system tools (forecast, management, planning management, Linky network, etc.). In 2019, Enedis will continue with the modernisation of the network, in order to facilitate the insertion of renewable energies and to assist all players in the electricity system. Carry out the digital switch-over and the management of the data The digital programme undertaken by Enedis since 2014 has come to an end. Based on four vectors: infrastructure management (remote management, predictive management, etc.), dialogue with outside parties, management of data from electricity meters and sensors, and social and cultural transformation of the company, which is providing its employees with new tools connected to the Information Systems in order to deliver better services to customers. Enedis has organised itself to process, exploit and accumulate the collected data and provide it to the various players in the electricity system (suppliers, transmission network operators, local authorities, new entrants) in compliance with the confidentiality and security regulations. Acting for the “cities of the future” or "smart cities", all local communities and citizens. Self-consumption, self-supply, electric mobility, smart meters, data management and the optimisation in real time of networks - these are the new challenges facing storage, data management and economic models. Industrialising technical solutions

electricity distributors in relation to regions as a whole, and especially cities. This has now become a reality. Enedis is promoting the emergence of DSOs (distribution system operators), facilitators of energy transition for all uses at every level, including local (cities, neighbourhoods, etc), not only in terms of the networks but also the associated data, necessary for regional players and cities aiming to become smart cities. The Open Innovation policy developed by Enedis has become particularly popular in local communities which have organised many energy, technological and environmental initiatives, and rely on a number of startups. Enedis “enriches” these projects and developments with its own research and innovation, especially in the fields of smart grids and data. In 2018, Enedis also included in its strategic development plan the goal of becoming a key industrial partner for all electric mobility players in order to jointly develop solutions to support its development on a large scale. All charging stations will be directly or indirectly connected to the distribution network developed and operated by Enedis. All players are counting on Enedis' contribution to the collective challenge of electric mobility, in particular regional authorities and industrial operators which are Enedis' partners on a daily basis. Focus on international expansion In the field of smart grids, Enedis has gone from a simple concept to demonstrators, then to industrialisation with a high level of maturity in just a few short years. In addition to the smart meters being deployed, the objective is a large-scale deployment of smart grid solutions on the networks in major geographic regions. Belgium, Egypt, Indonesia and India have selected solutions proposed by Enedis and its expertise. Enedis has structured the French industrial sector for smart electricity grids with other French players in this sector through the “Thinksmartgrids” association which now numbers around one hundred members (major industrial players, start-ups, universities, research institutes, etc.). The goal of the French smart grids team is to maintain its leadership in Europe and to expand in the rest of the world. Island Energy Systems 1.4.4.3 Island Energy Systems (IES) brings together the electricity systems operated by EDF which are not interconnected, or only slightly connected, to the mainland: Corsica, the overseas departments (except Mayotte) and the overseas territories of Saint-Barthélemy, Saint-Martin and Saint-Pierre-et-Miquelon, as well as several Ponant islands (Sein, Ouessant, Molène). EDF’s organisation in these regions is based on two structures: the Island Energy Systems Department, ensuring the supply and demand balance ■ on a daily basis, overseeing all networks and providing a sales and marketing activity without competition, guided by an active energy efficiency policy the subsidiary EDF Production Electrique Insulaire, which is responsible for ■ building and operating new means of generation. The additional generation costs in these territories compared with equivalent costs on the mainland, which the legislator considers as a public service expense, are offset by the state budget (see section 1.5.2 “Public service in France”). Tariffs for Using the Public Transmission and Distribution Networks (TURPE) apply to users connected to the distribution networks (See also section 1.5.3.2 “French legislation: the Energy Code”).

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EDF I Reference Document 2018