EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

Partnership agreements The General Partnership Agreement between EDF and CGN was signed in 2007 and complemented in 2014 by implementation of agreements related to engineering, R&D, and plant operation. The EDF group has set up a facility based in Beijing and Shenzhen (the Group's front office for China's nuclear industry) with the aim of promoting the EDF model of an integrated architect-assembler operator while acting as a flagship for French industry and positioning itself to support the Group's projects, in partnership with the Chinese nuclear sector. Experts in this facility are working, in particular, to further promote French codes and standards, as well as the Group’s nuclear safety guidelines. The organisation also hosts the representative of the Partenariat France Chine Électricité (PFCE) association chaired by EDF and made up of qualified suppliers of EDF which are seeking to develop in China. In 2010, the Group concluded a partnership framework agreement with China National Nuclear Corporation (CNNC), extended in March 2014, aimed at developing their cooperation along deeper, global lines. Also in 2013, the Group signed an agreement with CGN and AREVA - Framatome, which prepared the terms for the construction of future reactors and provided for EDF’s contribution to CGN’s operating fleet and its evolution. The partnership with CGN enabled the initiation of discussions concerning its participation in joint nuclear projects in Great Britain, which resulted in the signature by EDF and CGN of the final contracts for the Hinkley Point C power plant on 29 September 2016. An agreement covering the development of the UK Hualong technology was also signed at that time. Lastly, in the context of the Franco-Chinese governmental declaration of June 2015, tripartite agreements (EDF and AREVA - Framatome with CGN and CNNC) were signed in 2015, providing for the continued EPR construction in Taishan, the participation of the Chinese industrial customers in Great Britain, as well as a partnership for the development of medium- and large-sized reactors. In addition, an agreement between AFCEN and NEA (National Energy Administration) covering cooperation as regards codes and standards was signed in November 2017. Its objective is to promote mutual recognition of nuclear codes and standards and to establish a basis for cooperation between France and China enabling both countries to operate on the international nuclear market. The joint statement endorsed by the French and Chinese Presidents in January 2018 welcomes the cooperation between French and Chinese industrial players on EPR, particularly in Taishan, and calls for further joint efforts on British projects (Hinkley Point C, Sizewell, Bradwell). Framatome With 35 years' experience in China, Framatome offers its customers boiler safety instrumentation & control systems, equipment, services and fuel. As the designer of the EPR, Framatome is building the Taishan 2 reactor and providing some equipment as well as the fuel for Chinese-designed Hualong reactors. Framatome operates in China via joint ventures with Dongfang Electric Corporation (FDJV) and China National Nuclear Corporation (CAST) and through its wholly-owned subsidiary Framatome Nuclear Services (FNS). Framatome conducts its business from Beijing with offices in Lianyungang, Shanghai, Qinshan, Fuqing, Daya Bay and Taishan. Coal-fired thermal power generation activities Shandong Zhonghua Power Company Ltd. (SZPC) The EDF group holds 19.6% of SZPC, a company which owns three coal-fired power plants in the Shandong province, commissioned between 1987 and 2004, with a total capacity of 3,060MW. The other shareholders are the Guodian group (which merged with Shenhua in 2017 to form a new group, State Energy Investment Group) and the Hong Kong electricity producer CLP. Datang Sanmenxia Power Generation Company Ltd. (DSPC) The EDF group holds 35% of DSPC, the Company that owns the Sanmenxia 2 power plant in Henan province, commissioned in 2007, with an installed capacity of 2×600MW, using a technology known as “supercritical coal”. This investment was made through a joint venture with a fixed lifespan, established by the Chinese authorities, running until 2039. The other shareholders are two Chinese companies, including the Datang Group, which has a majority stake in which DSPC. Fuzhou Power Generation Company (FZPC) The EDF group holds 49% of FPC, a joint-venture created in 2014 with a subsidiary of the Datang group to build and operate an “ultra-supercritical” coal-fired thermal power plant (2×1,000MW) in the Jiangxi province. The first unit was commissioned

in December 2015, the second in April 2016. Fuzhou is thus the first power plant of the “ultra-supercritical” type (in other words, having increased output and a limited environmental impact) in which the EDF group has a stake. This technology makes it possible to reach high levels of temperature and pressure in the boiler, assuring a better output (close to 44% for Fuzhou) than a traditional power plant, while decreasing coal consumption and CO 2 per kilowatt-hour generated. Renewable energies EDF Renewables holds an 80% interest in UPC Asia Wind Management (AWM) which develops and builds wind projects in China with a team of 100 employees. Through AWM, the EDF group has an equity stake in six wind power plants (including two under construction) for total installed capacity of 315.3MW (140.2MW in proportion to EDF's equity) as well as a project pipeline under development representing several hundred MW. In 2018 EDF Renewables diversified into distributed solar power by setting up a joint venture with ACC aimed at developing rooftop solar panels for industrial customers (EDF owns 15.7MW of the planned capacity of 20.9MW, in proportion to its stake). EDF Renewables also set up a joint venture with Qilu Transportation to install ground-mounted solar panels along highways operated by Qilu in Shandong province. See section 1.4.1.5.3 “EDF Renewables”). Research & Development (R&D) activities Seven years after its creation, EDF's R&D centre in China has stepped up support to EDF China's Divisions and is deploying its expertise on priority thematic areas for EDF's development in China. The Centre's activities involve the generation and storage of low-carbon electricity, innovative electricity grids, local multi-energy systems, energy engineering, electric mobility and open innovation. Modelling and digital simulation capacities are a strong component in each one of these fields. Energy services In the city of Sanmenxia (Henan province), EDF set up a joint venture (of which 65% is held by EDF) for the construction and operation of an urban heating network using the recovery of unavoidable heat emitted by thermal power plants of its partner Datang. The concession agreement, for a period of 30 years, was signed on 9 August 2016 and the network entered into commercial operation on 15 November 2016. After the success of the first heating season, the municipality of Sanmenxia decided on 29 August 2017 to extend the concession area granted to the joint venture and to reduce CO 2 emissions by 200,000 to 240,000 tonnes per year starting from 2021. In the city of Lingbao (Henan province), EDF set up a joint venture on 13 November 2017 with the municipal investment company (of which 65% is held by EDF) to build and operate a heating network powered by a 35MW biomass cogeneration power plant. The 30-year concession agreement was subscript on 9 January 2018 as part of the French President's state visit to China. Construction on the power plant is expected to begin in Q1 2018. This project will provide additional income to local farmers and will allow for the controlled elimination of agricultural waste and the avoidance of 150,000 tonnes of CO 2 per year. In the city of Sanya (Hainan province), EDF and its partner Changfeng Energy were chosen on 8 August 2017 by the municipal government to complete a network of multi-energy plants in the city's tourist areas under a 30-year concession agreement. This initiative will make it possible to supply cooling (air conditioning) and sanitary hot water to hotels, shopping centres and hospitals. The joint venture (of which 50% is held by EDF) was set up on 6 November 2017 and the concession agreement was signed on 9 January 2018 in the presence of the French and Chinese Presidents. This project will enable the avoidance of 20,000 to 70,000 tonnes of CO 2 per year. Concerning energy services, the contract signed with Dongfeng Peugeot Citroën Automobile in Wuhan in 2013 for street lighting was extended in 2014 and 2015. EDF is also working with the municipality of Wuhan for the planning, development and operation of energy services in the Franco-Chinese eco-district of Caidian. An initial contract was signed in 2016 for the completion of two pilot projects covering street lighting and the energy efficiency of a test building. The Group also proposes to bring innovative solutions to industrial customers and eco-districts by drawing on EDF’s expertise in Europe, particularly in the fields of smart grids, cogeneration, waste heat recovery and decentralised renewable energies (heat pumps, district solar, biomass and geothermal power).

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EDF I Reference Document 2018