EDF / 2018 Reference document

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

Edison's gas and hydrocarbon output

4,013

4,001

2,500

4,000

2,263

2,073

2,000

Petrol and condensate out of Italy

3,000

Petrol and condensate out of Italy

2,127

2,349

1,500

Gas out of Italy

1,909

2,000

1,636

Gas out of Italy

1,000

1,000

Petrol and condensate in Italy

Petrol and condensate in Italy

1,874

500

1,664

Gas in Italy (1)

437

Gas in Italy (1)

354

0

0

2018

2018

2017

2017

Gas output In millions of cubic meters

Petrol and condensate output In millions of barrels

(1) Includes a part of ouput from Croatia (Izabela gas field) imported into Italy since July 2014.

extension of wind farms, for total installed capacity of 165MW, including 153MW with the guarantee of a subsidised tariff. In 2018 E2i began building and upgrading these wind farms, financed by a 15 year €150 million credit facility granted in late 2017 by the European Investment Bank (EIB). Once the projects are completed in 2019, E2i will have added over 700MW to its installed capacity. Apart from Edison and the partnership with F2i, EDF Renewables is active in Italy (see section 1.4.1.5.3 “EDF Renewables”). In terms of innovation, in late 2018 Edison set up its first energy storage system, with a capacity of 822kWh, at the 3.3MW solar power plant in Altomonte, Calabria, to test its compatibility with renewable generation. From an international point of view, Edison benefits from a well-established presence in Greece, where it is one of the main electricity operators in the country, through ElpEdison SA, (Edison owns a 38% equity stake, the remaining 62% bellongs to Hellenic Petroleum, Hellenic Energy and Development the Hellactor group and Halcor). ElpEdison owns two CCGT plants: one in Thessaloniki (389MW) and one in Thisvi (410MW), built by Edison and selling electricity on the private users market. Last, Edison holds a 50% stake in Ibiritermo, a subsidiary in Brazil, which operates a 226MW CCGT plant, and a 20% stake in Kraftwerke, which operates 626MW of hydropower in Switzerland. Hydrocarbons 1.4.5.2.3.2 For the implementation of its gas strategy, the EDF group, through Edison, benefits from experience developed along the entire value chain, from exploration-production through to the direct sale of natural gas. Edison’s gas supply portfolio in Italy is mainly based on long-term contracts and, in 2018, it included around 14.6Gm 3 of imports via gas pipelines and LNG, with 0.4Gm 3 of own production in Italy and 5.8Gm 3 purchased on the market. In 2018, total sales of gas in Italy amounted to 20.7Gm 3 (compared with 21.3Gm 3 in 2017). Edison delivered 4.5Gm 3 of gas to the industrial sector, 2.8Gm 3 to the residential sector, 6.5Gm 3 to the thermoelectric sector (including Edison’s own internal needs), and 6.9Gm 3 to the wholesale market.

In Italy and abroad, the Group’s gas production business through Edison increased by 9% compared with 2017, reaching 2.3Gm 3 . Production of oil and condensates remained steady at 4 million barrels, of which 1.7 million barrels in Italy. Electricity generation 1.4.5.2.3.1 At 31 December 2018, Edison's installed generation capacity was 6.1GW, with net electricity output of 18.8TWh for 2018, down by 4.8% compared with 2017. This was mainly due to lower thermal power and wind power output, partially offset by higher hydraulic generation as a result of better weather. Edison’s generation fleet is currently made up of 91 hydropower plants, 14 thermal power plants, 39 wind farms, 8 photovoltaic plants and 1 biomass plant. Combined-Cycle Gas Turbines (CCGT) account for 79% of electricity generation, while hydropower accounts for 16% and combined wind and solar for 5%. Edison operates around 1,012MW of hydropower facilities in Italy with an output of 3.1TWh (up 39% compared with 2017). In 2018, Edison continued its venture into mini-hydropower plants with the acquisition in January of a 72.9% stake in Frendy Energy which owns 15 plants situated for the most part on irrigation canals in Piedmont and Lombardy. In late 2018 Edison acquired from Eaux Valdotaines, a local hydropower producer in Valle d'Aosta, three mini-hydropower plants in service with a capacity of 4.6MW each, one plant under construction and another in the official approval stage. In the renewable energies sector, Edison maintains critical mass thanks to E2i Energie Speciali srl, an entity created in 2014 in partnership with the F2i fund which has a 70% stake, the remaining 30% being held by Edison Partecipazioni Energie Rinnovabili srl, itself 83.3% held by Edison and 16.7% by EDF Renewables. E2i holds 661MW of renewable assets and transfers 100% of the energy generated to Edison, which uses it for integrated management of its production portfolio. EDF EN Services Italia srl, an entity owned by Edison Spa (30%) and EDF Renewables Services SAS (70%), is responsible for operating and maintaining this platform. With the aim of developing its activities in the wind sector, at the end of 2016, E2i won a public auction for eight projects for the construction, reconstruction or

68

I Reference Document 2018