EDF / 2019 Universal registration document

1. The Group, its strategy and activities Description of the Group’s activities

Renewable energy generation and 1.4.1.5 storage Renewable energy  (1) (hydropower, wind power, solar, biomass, geothermal, marine etc.) has seen robust growth worldwide. Hydropower is the electric renewable energy leader in the world, with an aggregate installed capacity estimated at 1,293GW  (2) , of which 121GW of storage capacity through pumping. It has significant prospects for development in certain regions, even though it is close to its maximum operating potential in many developed countries. According to the International Energy Agency (IEA), from 2019 to 2040, hydropower is expected to account for about 8% of new capacity. The combined installed onshore wind capacity reached 540GW  (3) in 2018 worldwide (of which 180GW in China) compared with 496GW a year before (of which 162GW in China). According to the IEA, from 2019 to 2040, wind power is expected to account for 20% of new capacity. The combined installed offshore wind capacity reached 23GW  (4) in 2018 worldwide compared with 19GW a year before. According to the IEA, the installed capacity of offshore wind farms could increase by a factor of fifteen between 2019 and 2040.

In solar photovoltaic power, total global installed capacity stood at 480GWc  (5) compared with 386GWc a year before, up 24%. Today, it is largely wind, solar and biomass that are driving growth in renewable energy. According to the IEA, from 2019 to 2040, solar photovoltaic power is expected to account for 35% of new capacity. The EDF group is now the renewable energies leader in Europe and specifically the leading supplier of hydropower in the European Union; hydropower generation represents the Group’s most important renewable energy, with an installed capacity of 23GW and 267  (6) large dams in the world. The Group is also leader in developing competitive industrial sectors, primarily wind and solar. EDF’s goal is to achieve 18.0GW of net installed capacity in solar and wind power by the end of 2023. Renewable energies already account for a quarter of the Group’s overall installed capacity. The EDF group’s commitments in terms of developing renewable energy are also described in section 3.2.1.2 “EDF, a company committed to the development of renewable energy”.

NET GROUP INSTALLED CAPACITY IN RENEWABLE ENERGY AT END 2019 u

Hydro power

Total

Wind Photovoltaic

Biomass Geothermal

Marine

(in MW)

France

20,548

1,503 1,778 3,943

260

231

1

240

22,783

Europe excl. France

1,079

96

4

- - - -

- - - -

2,957 4,980

America

205 432

833 179 381

- - -

Asia

279 323

890 705

Africa

-

TOTAL NET INSTALLED CAPACITY

22,264

7,827

1,749

235

1

240

32,315

Electricity storage has been developed ever since the 1970s, with the construction of pumped-storage hydropower plants (STEPs) for water from dams, thereby demonstrating the economic benefits of electricity storage in France and several other countries. Today, a variety of electricity storage solutions are available. These include storage in the form of mechanical energy (inertia flywheels, water storage at height), electrochemical energy (batteries, flow batteries), and chemical energy (gas produced by electrolysis then used to power a fuel cell), each of which has its own

characteristics in terms of maturity, power, energy recovery performance, energy density, response time, lifespan, etc. While further challenges remain before storage technologies can be massively rolled out, the swift progress achieved in recent years is already creating new opportunities to develop solutions addressing consumers’ expectations of having access to reliable, affordable or renewable and local electricity. According to the IEA, worldwide installed battery storage capacity amounts to 8GW, and this figure is likely to increase sharply. The IEA forecasts that worldwide installed battery storage capacity could be 300-550GW in 2040.

(2) Source of hydraulic capacities worldwide: Renewable capacity statistics 2019, International Renewable Energy Agency (IRENA) (3) Source of onshore wind power capacity worldwide: Renewable capacity statistics 2019, International Renewable Energy Agency (IRENA) (4) Source of offshore wind power capacity worldwide: Renewable capacity statistics 2019, International Renewable Energy Agency (IRENA) (5) Source of photovoltaic capacity worldwide: Renewable capacity statistics 2019, International Renewable Energy Agency (IRENA) (6) Counting done in 2019, according to the French classification (decree 2015-526) relating to class A and B dams (with a height exceeding 10 metres). Number of large dams in gross data, regardless of the equity interest EDF group holds in these dams. Net consolidated total of large dams: 262. (1) Renewable, or “green” energies, are derived from natural resources that are replenished quickly enough to be considered non-depletable in human terms. u Key non-financial performance indicator (see concordance table with the non-financial performance statement in section 8.5.4). Power generation capacity, in proportion of the share the EDF group held in each asset.

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EDF | Universal registration document 2019