EDF / 2019 Universal registration document

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

Solar photovoltaic power 1.4.1.5.2.2 The operating principle of solar photovoltaic power is to convert sunlight directly into electricity. Photovoltaic solar power is used in two ways: it can either be connected to the grid, or it can generate electricity at isolated sites. Grid-connected photovoltaic systems have witnessed steady growth around the world in two markets: ground-based solar farms and rooftop installations on buildings and homes. The cost of generating solar power has fallen considerably in recent years. However, there is still considerable room for improvement, especially in the field of innovation and enhanced industrial processes. EDF R&D also conducts research on photovoltaic technology, under the aegis of the French Institute for Photovoltaic Power Research and Development (IRDEP), established in partnership with CNRS (National Centre for Scientific Research) and ENSCP (Paris National School of Chemistry). Other renewable energies 1.4.1.5.3 Biomass and biogas 1.4.1.5.3.1 Technologies based on biomass mainly consists of burning certain types of waste, particularly from the timber and farming industries, or exploiting wood fuel forests, to produce heat or electricity. Biofuels can come from a wide range of sources. There are three different energy streams: combustion plants for plant matter (wood, agricultural waste) or animal matter; biogas generation plants (gas generated from the fermentation of organic animal or plant matter); household waste incineration plants. Lastly, through its holdings, the Group owns shares in France (notably through its subsidiary Dalkia, see section 1.4.6.1.1 “Dalkia”), and abroad in several dozen heating networks and small-scale, mainly wood-fired generating plants. Geothermal energy 1.4.1.5.3.2 The temperature of the rocks in the earth’s crust increases with depth (3°C on average every 100 metres). In some regions, geothermal energy reaches the surface in the form of hot springs, water or steam. The hot water is used directly in the form of heat: central heating in homes or heating of greenhouses. Steam extracted from the ground is also used to generate electricity: as in a classic thermal power station, it drives a turbine. It is also possible to use hot and dry rocks as a source of electricity production from steam. To develop this type of energy, EDF has joined forces with several partners (including ÉS and German energy companies) as part of a European consortium that develops and operates a prototype geothermal power plant in the hot, naturally fractured crystalline rock around Soultz in Alsace. Battery storage 1.4.1.5.3.3  Electrochemical batteries consist in a system of cells, each of which consists of electrodes, a separator, and an electrolyte. The type of electrode and electrolyte varies depending on the battery technology in question: lead, lithium, nickel-cadmium, etc. The cost of batteries has come down considerably in recent years. Energy storage is a rapidly-growing sector; EDF is involved in it via its Storage Plan (see section 1.4.1.5.4, “EDF Renewables”), part of which calls for the deployment of batteries to allow in particular to spread power generation from intermittent renewable energies.

Other technologies 1.4.1.5.3.4 Renewable energies cover a wide range of sectors and technologies. To prepare for the future, EDF Renewables responsible within the EDF group for identifying promising sectors and, with the support of the Group’s R&D teams or industrial partners, contributes to the emergence of new technologies. So-called concentrated solar power is one of the promising avenues being explored by EDF Renewables. As well as producing electricity, this technology allows energy to be stored. EDF Renewables 1.4.1.5.4 Apart from hydropower, the EDF group’s involvement in renewable energy is largely conducted by its a wholly-owned subsidiary EDF Renewables. The companies in the EDF Renewables group had a workforce of 3,685 employees at 31 December 2019. EDF Renewables has the expertise required to ensure EDF’s development in renewable energies, particularly in the fields of onshore and offshore wind power and solar photovoltaic power. EDF Renewables is fully engaged in the renewables market dynamic, with a strong presence in onshore and offshore wind power, as well as accelerating its solar power business. EDF Renewables is also expanding into the storage sector, in line with EDF’s Storage Plan, which calls for 10GW of new capacity by 2035, including 4GW from large-scale batteries. Lastly, EDF is present in the decentralised renewable energy sector (rooftop solar power) for individuals and corporate customers in France ( via the EDF ENR subsidiary), and more recently in the US and China for corporate customers (through EDF Renewables subsidiaries). EDF Renewables has seen marked growth in installed capacity (up 11%/year on average over the past five years). As of 31 December 2019, EDF Renewables had gross installed capacity of 12,606.6MW, net installed capacity of 8,123.2MW and 5,041.3MW gross currently under construction. Excluding storage projects, the project portfolio totalled 30.4GW at the end of 2019  (1) . The EDF group aims to achieve net installed capacity in renewables (excluding hydropower) of 18GW by 2023. With operations in over 20 countries, EDF Renewables is one of the benchmark players in the development and production of electricity from renewable energy sources, in particular in its main historic locations of North America (USA, Canada, and Mexico) and Europe (led by France and the United Kingdom). EDF Renewables has also undertaken a geographical rebalancing of its activities, increasing its presence in other countries with high potential for the development of renewable energy, including Brazil, China, India, UAE, Saudi Arabia, and Egypt. EDF Renewables is an integrated operator in renewable energies and is involved in every stage of the value chain. EDF Renewables operates upstream, in project development, as well as in engineering during the construction of power plants and their operation and maintenance. EDF Renewables develops projects on its own or in partnerships, as appropriate. As part of its business model, the Group is also involved in the Development and Sale of Structured Assets (an activity referred to as “DSSA”), which consists of selling projects it has built, in whole or in part, to third-party investors. With regard to DSSA, the net capacity sold in 2019 amounted to 1,337MW.

(1) The project portfolio total is 32GW if storage projects are included.

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EDF | Universal registration document 2019

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