EDF / 2019 Universal registration document

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

Île-de-France region with a view to fostering the emergence of new technology in the field of photovoltaic cells and modules and testing it in pre-industrial conditions. United States EDF Renewables is engaged in a growth strategy in the USA on the decentralised energy market. A number of acquisitions have fuelled growth since 2016. Following the acquisition in 2016 of Global Ressources Options, Inc. (groSolar), which specialises in the installation and sale of photovoltaic plants for local authorities, service companies and industrial players, in 2018, EDF Renewables North America entered into a strategic partnership with EnterSolar, a leading supplier of solutions for the decentralised generation of solar energy for commercial and industrial (C&I) customers. This partnership concerns the EDF Renewables equity investment in EnterSolar to the tune of 50%. It will allow both companies to offer C&I customers the most comprehensive range of solutions for “behind the counter” decentralised electricity generation and to capitalise on the sharp growth in demand for decentralised generation solutions from the C&I sector. In 2019, EDF Renewables North America acquired PowerFlex Systems with the aim of speeding up large-scale deployment of infrastructures for electric vehicles in the USA. Based in Los Altos, California, PowerFlex System is a pioneering firm in the field of charging technology. This acquisition has allowed the creation of a unique decentralised energy ecosystem combining smart charging solutions for electric vehicles and power charging for buildings, together with solar power production and storage facilities. China In 2018, EDF Renewables together with Asia Clean Capital (ACC), one of the main developers in China of rooftop photovoltaic installations for local businesses and multinationals, launched a joint venture aimed at building and operating a portfolio of decentralised solar energy projects on rooftops. The joint venture shall leverage the local reputation of ACC as a key decentralised solar player in the country and the international expertise of EDF Renewables in decentralised solar power and in self-consumption solutions for industrial players. In 2019, EDF Renewables acquired a majority stake in an asset portfolio comprising 77MWp of rooftop solar power installations with Asia Clean Capital. Storage sector In 2018, the Group launched an Electricity Storage Plan which provides for the installation of 10GW new storage facilities for electricity systems by 2035, to which EDF Renewables contributes. In a context marked by the strong growth of renewable energy generation and by the closure of large-scale electrical facilities, battery storage technology, combined with a smart control system, helps smooth out the generation of electricity of the national grid. In this context, through its subsidiaries, EDF Renewables develops innovative storage systems in the US, the United Kingdom and France. In 2015, for instance, EDF Renewables North America commissioned an innovative storage system. The McHenry facility provides nearly 20MW of capacity (40MW of dynamic capacity) and helps monitor an energy reserve to stabilise the frequency of the electricity grid at a local level. In 2018, EDF Renewables commissioned the battery storage system with a capacity of 49MW located in the West Burton B plant in Nottinghamshire in the UK. This facility is the most important project of the new frequency control system to be rolled out across the entire UK. The objective is to improve electricity grid stability and quickly respond to grid frequency fluctuations. In 2018, EDF Renewables also signed two twenty-year power purchase agreements in the US relating to the construction of the Big Beau Solar+Storage solar project, in California (see section Solar photovoltaic power North America), and connected to the battery storage system of 40MW (160MWh). In 2019, EDF Renewables bought UK start-up Pivot Power, specialising in battery electricity storage and charging infrastructures for electric vehicles. The EDF group is already the UK’s leading producer of low-carbon electricity; this acquisition will now enable it to become one of the country’s leading battery storage installers, too.

Lastly, the Noor Midelt I solar power project in Morocco (see section 1.4.1.5.2.2, “Solar photovoltaic power”) is a major project for the storage industry.

Sales and supply activities 1.4.2 in France Presentation of the market in France 1.4.2.1 Demand 1.4.2.1.1 In 2019, gross consumption stood at close to 474TWh, i.e. 1% down compared with the previous year. This decrease is due to generally milder temperatures, in particular at the start of the year, and slower economic growth than in 2018. Competition 1.4.2.1.2 Since 1 July 2007, the French market for electricity and gas has fully opened-up each customer able to choose their energy supplier. Over the last four years, the number of active electricity suppliers in France excluding historical suppliers has doubled from 24 at end-2015 to 47 at 30 September 2019 according to the Energy Regulation Commission (CRE). In the electricity and gas markets many suppliers have been proposing offers to businesses and local authorities since the early 2000’s. For residential customers, competition has intensified significantly since 2017 with the entry into the market of gas and electricity suppliers well established in other activities or geographical areas. To supply their customers in 2019, EDF’s alternative suppliers had access to their own generation capacities as well as to the wholesale electricity market and ARENH (“Regulated Access to Historic Nuclear Energy”) for around 100TWh. During the November 2019 application process, the demand from alternative providers reached 147TWh for an ARENH distribution volume of 100TWh (see also section 1.4.3.3 “Regulated Access to Historic Nuclear Energy [ARENH])”. French Act 2019-1147 of 8 November 2019 on energy and the climate (known as the “Climate and Energy” Act) implemented the July 2017 decision by the French Council of State ruling that regulated gas sales tariffs contravene EU law. Regulated gas tariffs will disappear in late 2020 for professional customers using less than 30MWh/year, and on 30 June 2023 for domestic customers, in line with the procedures detailed in law. The “Climate and Energy” Act also specifies procedures for ending regulated electricity sales tariffs for certain customer categories (see section 1 4.2.1.3. “Regulated electricity sales tariff contracts”). Regulated electricity sales tariff contracts 1.4.2.1.3 Access to regulated electricity tariffs Appeals were lodged by Anode and Engie before the Council of State against the tariff decisions of 28 July 2016 and 27 July 2017 on the grounds that the regulated electricity sales tariffs known as tarifs bleus for households and small companies do not comply with European law. By decisions of 18 May and 3 October 2018, the Council of State accepted the principle of regulated electricity tariffs, recognising in particular that they pursue the objective of general economic interest of guaranteeing that consumers pay for electricity at a price which is more stable than market prices. The Council confirmed that this objective can only be met by a less restrictive state intervention than a general electricity unit price regulation and that the regulation on “Regulated electricity tariffs” (TRV in French) guarantees equal access to consumers by electricity companies and is not discriminatory. However, the Council of State considered that the tariff regulation is disproportionate in its duration, which is permanent, and its scope of application, which currently covers large business sites with subscribed power levels below 36kVA. These elements justified the partial cancellation of the tariff decisions of 2016 and 2017.

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EDF | Universal registration document 2019