EDF / 2019 Universal registration document

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

The role of Enedis is therefore constantly changing as it adjusts to regional reorganisations and the organisation of society into metropolises, whilst also ensuring a high-quality electricity supply is maintained in rural areas. Enedis makes its technical expertise available to local authorities to contribute to local energy policies, “positive energy territories for green growth”, urban travel plans, and “smart cities” projects. The Open Innovation policy developed by Enedis has also become popular in local communities which have organised many energy, technological and environmental initiatives, and rely on a number of start-ups. Enedis “enriches” these projects and developments with its own research and innovation, especially in the fields of smart grids and data. In 2019, Enedis has implemented its strategic development plan focusing on becoming a key industrial partner for all electric mobility players in order to jointly develop solutions to support its development on a large scale. All charging stations will be directly or indirectly connected to the distribution network developed and operated by Enedis. In response to the collective challenge constituted by electric mobility, Enedis’ contribution is expected by all stakeholders, in particular local authorities and industrial companies, for which Enedis is a partner on a day-to-day basis, with the stated aim of making electric mobility possible for everyone, everywhere. In 2019, operational achievements on the ground accelerated: in close cooperation with local authorities, Enedis is now a partner in over 120 projects relating to light vehicles, coaches, buses, and boats. These achievements bear witness to the feasibility and imminent industrialisation of electric mobility. Some projects use hydrogen produced by methods that do not emit CO 2 . Such projects allow the players in the ecosystem to combine their complementary contributions and acquire more accurate knowledge of the cost of operations, as well as offering sources of leverage for simplification. Some changes, such as the electrification of bus fleets, are already in the industrial phase; others, such as equipping building car parks, are less advanced. The ability to use the energy available from batteries when vehicles are stationary and not recharging is also an area for development. Focus on international expansion In the field of smart grids, Enedis has gone from a simple concept to demonstrators, then to industrialisation with a high level of maturity in just a few short years. In addition to the smart meters being deployed, the objective is a large-scale deployment of smart grid solutions on the networks in major geographic regions. Belgium, Egypt, Indonesia and India have selected solutions led by Enedis and its expertise. In India in particular, deployment of smart meters in the region of New Delhi entered its operational phase in 2019. Enedis has structured the French industrial sector for smart electricity grids with other French players in this sector through the “Thinksmartgrids” association which now numbers around one hundred members (major industrial players, start-ups, universities, research institutes, etc.).

The goal of the French smart grids team is to maintain its leadership in Europe and to expand in the rest of the world. Acquiring and developing tomorrow’s skills. The digital grid has enabled Enedis to become a data operator, revealing the need for skills in information technology, telecoms, and cyber security. Enedis is also enriching its customer relations via a digital strategy that includes a mobile application, a local authorities space on its website, and a higher profile on social media in 2019. To develop the skills needed for the future, Enedis is devoting the equivalent of 8% of its payroll costs to training, compared to a statutory obligation of 1.6%. Recruitment policy is geared to a long-term perspective, targeting the company’s core business (grid operation, maintenance, and development), as well as new business lines relating to digital transformation, with 2,100 new recruitments planned over the next four years. Action to mitigate climate change Enedis is reducing its carbon footprint by improving infrastructure performance (e.g. high-performance transformers minimising electricity losses, maintenance of source substations to prevent SF 6 greenhouse gas leakage), cutting its energy use in buildings, and accelerating the use of electric vehicles. The number of electric vehicles in a total company fleet of 17,500 vehicles will rise from over 2,200 at the end of 2019 to over 2,900 in 2020, 16.6% of the total. Enedis is working to preserve biodiversity through initiatives designed to protect birds from the risk of electrocution. Enedis also aims to reduce, reuse, and recycle waste produced by its activity. Island Energy Systems 1.4.4.3 Island Energy Systems (IES) brings together the electricity systems operated by EDF which are not interconnected, or only slightly connected, to the mainland: Corsica, the overseas departments (except Mayotte) and the overseas territories of Saint-Barthélemy, Saint-Martin and Saint-Pierre-et-Miquelon, as well as several Ponant islands (Sein, Ouessant, Molène, Chausey). EDF’s organisation in these regions is based on two structures: the Island Energy Systems Department, ensuring the supply and demand balance ■ on a daily basis, overseeing all networks and providing a sales and marketing activity with regulated sales tariffs, guided by an active energy efficiency policy; the subsidiary EDF Production Électrique Insulaire, which is responsible for ■ building and operating new means of generation. The additional generation costs in these territories compared with equivalent costs on the mainland, which the legislator considers as a public service expense, are offset by the state budget (see section 1.5.1.2 “Public service in France”). Tariffs for Using the Public Transmission and Distribution Networks (TURPE) apply to users connected to the distribution networks (See also section 1.5.2.1.2 “French legislation: the Energy Code”).

IES KEY ELEMENTS

Data at end-2019 Total

Number of customers Network length (in km)

1,167,500 approximately 37,800 approximately

Net installed capacity of the EDF fleet (in MW)

2,060

of which hydropower fleet and other renewable energy sources

21% 79%

of which thermal fleet*

Output* (in GWh)

5,785

of which hydropower output

20%

Purchases of energy from third parties (in GWh) of which renewable energies, including bagasse

4,162

39% 61%

of which other energies

TOTAL ENERGY GENERATED BY EDF AND PURCHASED FROM THIRD PARTIES

9,947

Data including EDF Production Électrique Insulaire (PEI), a wholly-owned subsidiary of the EDF group *

54

EDF | Universal registration document 2019

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