EDF / 2018 Reference document

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

IES KEY ELEMENTS IN 2018

Data at end-2018

Total of which Corsica

762

Headcount (1)

3,457

Number of customers Network length (in km)

1,166,994

259,914 11,951

37,348

2,058

574 204 369 569 894 278 615

Net installed capacity of the EDF fleet (in MW)

of which hydropower fleet and other renewable energy sources

437

of which thermal fleet (1)

1,621 5,928 1,682 3,762 1,377 2,385 9,690

Output (1) (in GWh)

1,388

of which hydropower output

Purchases of energy from third parties (in GWh) of which renewable energies, including bagasse

of which other energies

2,281

TOTAL ENERGY GENERATED BY EDF AND PURCHASED FROM THIRD PARTIES

Data including EDF Production Électrique Insulaire (PEI), a wholly-owned subsidiary of the EDF group, which is in charge of renewing the (1) thermal power plants in Corsica and overseas departments. Thermal installed capacity remained stable between 2017 and 2018.

EDF also contributes to making advances in technical capacities relating to the insertion of intermittent renewable energies into IES by suggesting improvements to their technical specifications, making the grid more resistant to power disruptions, and developing smart metering systems. EDF is also spearheading three 5MW battery projects, intended as a means of offsetting supply/demand fluctuations, out of a series of power storage projects selected by the CRE in 2018. Work is also ongoing to create micro-networks 100% powered by renewable energies in certain isolated zones. In 2017, an innovative system combining photovoltaic, digital monitoring and storage was installed on the island of Sein off the coast of NW France, allowing for a 100% renewable electrical supply several hours each day, while part of Mafate on the island of Réunion receives solar power and is equipped with a battery and a hydrogen fuel cell. Several other projects are planned, especially for remote communes in the interior of Guiana (Maripasoula, Papaicthon, Saint Georges de l’Oyapock). Energy efficiency is a crucial energy transition lever in the island systems. EDF contributes to the elaboration and implementation of the demand side management (DSM) territorial strategy, one of the main tools of which are public grants for equipment (€600 million validated by the CRE for 2019-2023). EDF actively promotes DSM operations financed by these grants for all types of customers, particularly through the Agir Plus label. EDF has committed to deploy 1.2 million digital meters in the overseas departments (excluding Mayotte) and Corsica by end-2023. This represents an investment of €268 million. These digital meters will introduce much more modern customer relations and amplify the energy transition levers. At end-2018, over 115,000 meters were installed Reconstruction phase after the extreme weather events of 2017 Hurricane Irma struck the islands of Saint-Martin and Saint-Barthélemy on 6 September 2017. The means of generation were relatively spared. Reconstruction of the electricity grids began in 2018. This work should improve the resilience of the grids and structures to extreme weather events. In addition, the deployment of digital meters on both islands will maximise efforts to manage the demand for energy and insert renewable energies onto the network. Électricité de Strasbourg 1.4.4.4 Électricité de Strasbourg (ÉS) is an Alsatian energy producer which is committed to the long-term energy and economic performance of its territory via its four activities: the distribution of electricity, supply of energies, energy services and the production of renewable energies. This portfolio of activities makes it possible for the ÉS group to better provide support to its customers in the energy transition. ÉS also provides services to Local Distribution Companies (Entreprises Locales de Distribution, or LDCs) in eastern France. The ÉS group is 88.64% owned by EDF, and the remaining shares are owned by the public and its employees. Its shares are traded on Euronext Paris.

In view of the difference within these systems between the megawatt-hour generation costs and the sale price at the equalised tariff, EDF is applying demand-side management (DSM) strategies in these territories together with institutional players such as government departments, municipalities, the French Agency for Environment and Energy Management (ADEME), and local institutions. Changes and outlook nvestments to modernise and reinforce the electricity generation fleet with guaranteed capacity In accordance with the territorial PPEs, the EDF group has undertaken to replace the main power plants which are at the end of their useful lives. The new power plants will be constructed and operated by the EDF subsidiary PEI (Production Électrique Insulaire). The construction sites for four diesel power plants were completed successfully between 2012 and 2015, for a total net capacity of close to 746MW: Port-Est in La Réunion, Bellefontaine B in Martinique, Pointe-Jarry in Guadeloupe and Luciana B in Haute-Corse. These new generation resources, equipped with innovative technologies, allow the Group to deliver better industrial and environmental results and contribute to satisfying a part of the emerging electricity demands in these regions. Two more plants are in the works in Corsica and French Guyana. The extension of the Saint-Barthélemy power plant (two new generators of 16MW) and the renewal of the power plant on Saint-Pierre-et-Miquelon (21MW) have respectively been operational since 2014 and 2015. The Saint-Martin power plant was delivered in end June 2016 for an installed capacity of 40MW. In total, EDF invested €92 million in IES electricity generation in 2018. Investments in electricity networks The continued growth in consumption in these regions despite the energy efficiency actions undertaken, as well as the development of renewable energies and the growing number of generation facilities coming online, have led the EDF group to integration of renewable energies in the electricity generation mix and to optimising the management of electrical systems The energy transition Law stipulates that France’s overseas territories must be energy self-sufficient by 2030 (for Corsica, the deadline is 2050). The EDF group supports the emergence and development of electricity generation methods based on renewable energies adapted to IES. The methods favoured are those that provide abundant and guaranteed energy at competitive generation costs, but also sustainable in the long term, in such a way as to position them as credible alternatives to thermal generation: biomass, marine and river energies, waste recovery, biogas. continue the reinforcement of the electricity networks. EDF thus invested €201 million in networks in 2018. A commitment to projects devoted to a better

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I Reference Document 2018