EDF / 2019 Universal registration document

3. Non-financial performance

EDF, a company committed to the energy transition

EDF, a company standing shoulder to shoulder with its customers

EDF has acquired E2M in Germany, an aggregator of renewable energy production and local flexibility that is active mainly on the German market. It has also taken over technical coordination of the EU project Eu-SySFlex, the aim of which is to determine a flexibility roadmap to incorporate 50% of renewable energy into European electricity grids by 2030. In the UK, EDF has launched the CommUNITY project, allowing social housing residents access to renewable energy sources through a peer-to-peer blockchain trading platform; in Singapore, EDF has launched the first French microgrid demonstrator, enabling the Group to roll out an offer of affordable, high-performance microgrids for remote areas in South-East Asia. Together with a major real estate project partner, Dalkia has launched the first dual heating and electricity smart grid in France in the Nanterre Cœur Université eco-district: the smart grid is able to pool five sources of renewable and recovered energy (EnR&R) to supply homes, offices, and shops in the district with heating, hot water, and air conditioning. With at least 60% EnR&R used, this smart grid allows 100% self-consumption of the electricity generated, which will be adjusted in real time. Distribution network manager Enedis published its Local Flexibility roadmap in October 2019. Innovative, flexibility-oriented technical solutions include sending an electronic instruction from management agencies to customers, so they can temporarily limit their energy use; load shedding at the request of Enedis during a cold spike; the use of charging stations or a storage system to modulate power and improve network resilience; and the forthcoming launch of an inventory of local flexibility sources that may offer an alternative to traditional solutions. Smart meters are an essential link in smart networks. They provide all players – distributors, suppliers, customers and local authorities – with wide range of benefits. EDF group has set itself the goal of installing at least 41 million such meters by 2021, mainly in France, the UK, and India. At end-2019, over 26 million meters were installed. EDF, a company standing shoulder to shoulder with its customers

EDF group's Electric Vehicles rate in the fleet of light vehicles (%)

100%

100

80

60

40

20

8.6% > 6.1%

0

Objectif 2030

Target 2030

2019

2018

Key non-financial performance indicator (see concordance table with the non-financial performance statement in section 8.5.4). For the scope and method used for this indicator, see section 3.4 “Indicators and methodology”. This indicator refers to key stake no. 5 ”Innovation, sustainable cities, and diversification of energy production methods” described in section 3.6.2 "Description of key stakes in the materiality matrix ".

Storage solutions and smart grids 3.2.2.2.2 EDF’s storage plan

In a changing energy landscape, EDF is speeding up the development of electricity storage to become the European leader in the sector. A pioneer in the field, the Group was already present in the main areas of application of storage technologies, in particular batteries and Pumped Storage Hydropower Plants (PSHP). EDF aims to develop 10GW of new storage facilities across the world by 2035 in addition to the 5GW already operated by the Group. EDF’s goals cover all electricity storage markets in order to ensure the proper functioning of the balance between the electricity system, private and business customers and regions. The Group aims, particularly, to be the leader in France and Europe in the individual customer market with its range of self-consumption offers integrating batteries. The African continent is also a priority market for the Group, which aims to develop a portfolio of 1.2 million “off-grid” customers (without access to electricity) by 2035. EDF has also invested in a number of Off Grid electrification companies, particularly in Côte d’Ivoire, Ghana, Kenya, and Togo. These companies are operational and at the stage of building up their customer portfolio. The portfolio of storage projects that have been constructed or decided already amounts to 0.5GW. The main aim of the projects developed is to offer services that support the electricity system and mesh with renewable energy production to defer renewable energy dispatch onto the grid. EDF also strengthened its R&D capacity, doubling storage research investment to €70 million over the 2018-2020 period. Smart networks and on-demand management The energy transition and digital revolution deeply transform the management of the electricity distribution network. Distribution network manager Enedis has a new roadmap setting out the priority work sites and transformation required to help make it the go-to distributor in France and Europe.

Number of smart meters installed (millions)

50

41

40

26

30

18

20

10

10

0

Target 2021

2019

2018

2017

Key non-financial performance indicator (see concordance table with the non-financial performance statement in section 8.5.4). For the scope and method used for this indicator, see section 3.4 "Indicators and methodology”. This indicator refers to key stake no. 3 “Action to support energy efficiency” and no. 6 “Performance of end customer offers (B2B and B2C)” described in section 3.6.2 "Description of key stakes in the materiality matrix ".

145

EDF | Universal registration document 2019