EDF / 2019 Universal registration document

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

Future challenges 1.4.4.2.4 Smart grids and smart meters (Linky)

also proposed technical solutions for individual and collective self-consumption, operational in multi-family housing and commercial buildings, storage, data management, and business models. Industrialising technical solutions Enedis is pursuing the industrialisation of cutting-edge solutions for smart grids and implementing technical changes to the network, based on a “network foundation”: This concerns all the components of the network with digital technologies in the source control stations (PCCNs, or Digital Command and Control Stations, which provide central management of the network’s transmission automation and FARs, or Functions for Automation of the Network, which facilitate management of the insertion of electricity from renewable sources), the distribution stations (HVA/LV Smart stations), the sensors on the network and all the information system tools (forecast, management, planning management, Linky network, etc.). In 2020, Enedis will continue with the modernisation of the network, in order to facilitate the insertion of renewable energies and to assist all players in the electricity system. Digitisation of energy systems: carry out the digital switch-over and the management of the data The development of measurement systems combined with digital innovations (the internet of things) enables collection and analysis of network data to be increased with a view to optimising management. Blockchain or artificial intelligence both offer new possibilities for network managers and all the players in the value chain, in particular regarding traceability from production to consumption, scheduling network maintenance operations, and anticipating supply and demand balancing. Against this backdrop, the digital programme undertaken by Enedis since 2014 has matured. This programme is based on four vectors: infrastructure management (remote management, predictive maintenance, etc.), dialogue with outside parties, management of data from electricity meters and sensors, and social and cultural transformation of the company, which is providing its employees with new tools connected to the Information Systems in order to deliver better services to customers. Enedis has organised itself to process, exploit and accumulate the collected data and provide it to the various players in the electricity system (suppliers, transmission network operators, local authorities, new entrants) in compliance with the confidentiality and security regulations. Regional energy policies In France, local territories are dealing with energy transition issues as a result of new prerogatives entrusted to local authorities by law. This ownership is demonstrated by the implementation of local energy policies, in particular with the adoption of Local Climate-Air-Energy Plans (PCAETs): these set goals for urban areas in terms of the development of renewable energy, electric mobility infrastructures, and lowering end consumption. Enedis’ action for the “cities of the future” or “smart cities”, all local communities and citizens. Self-consumption, self-supply, electric mobility, smart meters, data management and the optimisation in real time of networks – these are the new challenges facing electricity distributors in relation to regions as a whole, and especially cities. This has now become a reality. Enedis is promoting the emergence of DSOs (distribution system operators), facilitators of energy transition for all uses at every level, including local (cities, neighbourhoods, etc.), not only in terms of the networks but also the associated data, necessary for regional players and cities aiming to become smart cities.

Enedis, guarantor of the electricity distribution public service, invests at all times to develop, modernise and secure the electrical network. The adaptation of the electricity grid to the new needs of French society is a major strategic challenge. To achieve this, Enedis continued the industrial deployment of the Linky system in 2019, based on a new generation of meters, called “smart meters” that can receive orders and send data without the physical involvement of a technician. This system represents the first stage of smart grid implementation or “Smart networks”. It involves equipping the distribution network with connected objects, including the Linky meters, in order to integrate renewable energy electricity generation, which has undergone a significant expansion, further ensuring the balance between generation and consumption at all points of the electricity grid, and enabling suppliers to offer new energy solutions to their customers. In 2019, the latter accelerated the implementation of new contractual offers made possible by the large-scale advent of Linky meters (differentiated and lower tariffs, for example for the use of “green” electricity generated by solar panels). With Linky, electricity consumption curves per day, per week or per month are available to customers. This facilitates the management of energy consumption and is a concrete lever that meets the expectations of the public authorities responsible for energy transition. As of the end of 2019, two out of three French homes were equipped with a Linky meter. Following successful experimentation approved by the French government, on 1 December 2015 Enedis launched the widescale deployment of Linky meters, representing total investment of €3,972 million over the 2014-2021 period  (1) . At the end of 2019, the cumulative investment (2014-2019) already carried out amounted to €2,733 million, for 23.4 million Linky meters installed (including those used in the experiment), of which 21.6 million open to all services. As of the end of 2019, the percentage of Linky meters installed was 62.3%, compared to a target determined by the CRE for the end of 2019 of 61.4% (see also section 1.5.2.1.2 “French Legislation: the Energy Code”, Linky regulation). Energy transition Changes in the energy mix in Metropolitan France enshrined in the multi-year energy programme (PPE) herald the growing integration of decentralised intermittent renewable electricity production assets in electricity grids at the same time as the development of new types of energy use, in particular due to the expected growth in electric vehicles. Energy transition calls for the development of electricity storage capacity and services, allowing optimised management of grid supply and demand balancing, and involves the incorporation of innovative services and equipment for all electricity networks (from production to consumption). Enedis is implementing of a number of solutions to provide a greatly modernised network to consumers and companies. These solutions cover the operation of low- and medium-voltage networks, the integration of renewable energies and electric vehicles, storage management, voltage stability. The challenge for the distributor is to support energy transition while developing the networks at the lowest cost for society. Thanks to new technologies, a more detailed and responsive oversight is possible, based on a better understanding of consumption, generation and the state of the network. This “intelligence” makes it possible to avoid over-investment by adjusting it to consumption peaks, while guaranteeing the reliability of the network, pursuant to Enedis’ double public service objective of performance and security. The smart solutions being rolled out relate to areas such as innovation for the network, flexibility, and the integration of renewable energy. As an exemple Enedis

(1) The programme completion costs were reviewed downward, from €4,455 to 3,972 million for the period 2014-2021, after taking into account prices of the latest contracts signed for equipment (concentrator meters) and for installation services.

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EDF | Universal registration document 2019