EDF / 2018 Reference document
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PRESENTATION OF EDF GROUP Description of the Group's activities
KES In South Africa, the KES (Kukhanya Energy Services) company, created in 2002, is 50% owned by EDF, 15% by the local operator, Calulo, and 35% by Total. It initially developed its business through photovoltaic kits in Kwazulu-Natal, and then extended its activities into the Eastern Cape region. ERA In Senegal, the EDF group holds a 70% stake in the ERA company, alongside Matforce, a local partner. Since 2014, ERA has been the operator of the rural electrification concession of Kaffrine-Tambacounda-Kédougou (25% of Senegal's surface area). Having received a grant from the French Development Agency, with a third and last tranche expected to be released soon, ERA is developing the electricity grid, installing photovoltaic panels in rural areas and currently provides electricity to around 6,000 customers. The tariff review process initiated in June 2017 by the Regulator at the request of concession holders should be completed in early 2019 with the publication of new tariffs which should ensure the concession's financial equilibrium and enable its long-term development. SunCulture On 18 July 2018, the EDF group took a stake in SunCulture, a Kenyan firm, to undertake the sale, installation and maintenance of solar-powered water pumps for rural households in Kenya and rapidly expand into other African countries. ZECI The EDF group and Off Grid Electric (OGE) – an American company involved in the distribution of solar energy in Africa, in which Electranova Capital, EDF’s cleantech venture capital investment fund, holds a shareholding – created in October 2016 a joint company in the Ivory Coast, ZECI, for the supply of competitive off-grid solar energy in Africa. Within the framework of this joint venture, the EDF group and ZolaElectric assume the cost of the installation and maintenance of solar kits intended for households in rural areas and on urban outskirts. ZEGHA Off Grid Electric, the Ghanaian company CH group and EDF decided to create ZEGHA and launched the pilot phase in December 2017 on the Ivorian model before entering the current development phase in 2019. In a changing legislative, technological and social context increasingly turned to combating global warming and increasing energy efficiency, the EDF group must adapt its energy services to offer its customers solutions that work. These solutions draw on the Group's expertise implemented through its various subsidiaries. In June 2017, they were grouped under "EDF Solutions énergétiques" with the aim of optimising their activities under the EDF brand. The Group's energy services are designed to meet the needs expressed by local governments, firms and individuals in a wide range of applications such as urban services (e.g. electric mobility and smart lighting), distributed generation, heating and cooling network management, affordable private investment in new energy equipment (e.g. boilers and indoor lighting), and smart building management. All these solutions share the imperative to reduce carbon emissions and increase energy efficiency. In 2018, EDF focused on electric mobility to help lower carbon emissions in the transport industry, which accounts for 20% of greenhouse gas emissions in Europe. To that end the Electric Mobility Plan announced by EDF on 10 October 2018 outlines the Group's goal of becoming the energy industry's leading electric mobility service provider in Europe by 2022. The plan has three objectives: be the leading supplier of electricity for electric vehicles by 2022; ■ be the leading operator of charging stations; ■ be the leading provider of smart charging services in Europe by 2020. ■ ENERGY SERVICES AND OTHER 1.4.6 ACTIVITIES Energy services 1.4.6.1
These offices manage the commercial activities and projects in these various countries. The area's major projects are in the UAE with the customer DEWA (responsible for water and electricity in the city of Dubai): a development project for a 800MW solar photovoltaic power plant. EDF, ■ through its subsidiary EDF Renewables, is developing this project alongside Masdar, an Abu Dhabi-based company belonging to the Mubadala group and the customer DEWA. With 200MW already brought online and 300MW put under construction in 2018, once completed it will be the biggest solar power plant in the world (see section 1.4.1.5.3 “EDF Renewables”); an assistance project for the management of a 250MW dam pumping station, ■ planned for the Hatta mountains in the Emirate of Dubai, for the customer DEWA. The EDF group has sought to establish a long-term relationship with Nawah, the operator of the Barakah nuclear plant in the UAE. On 21 November 2018, EDF and Nawah signed a long-term master agreement under which EDF will assist the Emirates Nuclear Energy Corporation (ENEC) subsidiary with the operation and maintenance of the Barakah plant through various services such as safety, radiation protection, fuel cycle management and environmental monitoring. Another major project is in the process of being completed in Doha: engineering consultancy for the customer Kahramaa (water and electricity in Qatar) in connection with the completion of electricity substations and high-voltage cable networks (project falling under “Phase 13”). In 2014, in Saudi Arabia, the EDF group signed a partnership agreement with the Saudi Electricity Company (SEC), the country's benchmark electricity operator, enabling a broad cooperation between the two groups, including training initiatives. In the extension of this agreement, the GOC “Generation, Optimisation Center” contract signed in February 2016 provides for support by EDF for the implementation of regional generation optimisation centres. Israel The EDF group has been present in Israel since 2010 through its subsidiary EDF Renewables, which operates photovoltaic power projects connected to the grid with gross installed capacity of 295.1MW, and launched in 2018 the construction of an additional 87MW (see section 1.4.1.5.3 “EDF Renewables”). The Group also supports its Italian subsidiary Edison's efforts to expand into gas exploration and develop the EastMed gas pipeline connecting Israel to Italy. Furthermore, EDF Hydro's Hydraulic engineering centre supplies services to the first Israeli project for the storage of electricity through pumping, on Mount Gilboa. Off-grid energy 1.4.5.3.9 The EDF group has 15 years' experience in off-grid power provision in Africa via companies created for that purpose based on territorial concessions. Since 2017, the EDF group has joined forces with innovative startups to supply power and services to customers in rural areas and on urban outskirts in line with their income and needs. Solutions include supplying power to central grids, installing minigrids and providing solar power kits. Such services enable thousands of people in South Africa, Ivory Coast, Ghana, Senegal and Togo to light and power their low-consumption household appliances such as a television or a radio proposed within the offer, or to recharge their mobile phones. Our customers in Kenya can buy solar-powered water pumps and thereby significantly improve their crop yields. The EDF group, via EDF Pulse Croissance Holding with a 17% stake, teamed up with investment firm Meridiam to create NEoT Offgrid Africa with the aim of financing our energy supply and services solutions. BBOXX EDF bought a 50% stake in BBOXX Togo from BBOXX UK in November 2018 to undertake the sale, installation and maintenance of solar kits for rural households in Togo.
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I Reference Document 2018
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