EDF / 2019 Universal registration document

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

South America 1.4.5.3.5 In South America, the EDF group is present in the Brazilian and Chilean markets, and is extending its ambitions in certain countries in the region, in which it is prospecting for development opportunities. Brazil 1.4.5.3.5.1 Since April 2014, the Group has held 100% of EDF Norte Fluminense SA (EDF NF), following the buyback of the 10% equity interest held by Petrobras in its share capital. EDF NF built and has operated, since the end of 2004, the Combined-Cycle Gas plant of Norte Fluminense, with installed capacity of 725MW, located in the region of Macaé, State of Rio de Janeiro. A 20 years Power Purchase Agreement (PPA) for 725MW is in place with Light, the distribution company for the city of Rio de Janeiro. EDF NF supplies the equivalent of almost 25% (2,5 million of clients) of the electricity energy consumed in the Rio de Janeiro metropolitan area. The power plant’s generation in 2019 is 5.9TWh which represents an increase of 20% comparing with year end 2018. When Brazil’s market conditions and electricity grid permit, the remaining balance is sold on the spot market. In addition, on 11 December 2014, through its subsidiary EDF Norte Fluminense, EDF acquired a 51% stake in Sinop Energia, responsible for building, maintaining and operating the Sinop hydropower plant with an installed capacity of 402MW, supplying the equivalent of 50% of the State of Mato Grosso (1,6 million clients). Sinop Energia obtained the environmental permission to fill the reservoir on 24 January 2019. Delays on environmental licenses and difficulties with the EPC contractor have resulted in the postponement of the commercial commissioning that was eventually authorized by ANEEL (Brazil Regulatory Agency) on 17 September 2019 for the first turbine and 18 October 2019 for the second turbine. In the first quarter of 2018, EDF NF won the call for tenders as the contractor to operate and maintain the Sinop Energia plant. These O&M activities will be remotely performed from Macaé (2,500km away from Sinop), starting from the end of 2020, thanks to innovative technologies being implemented by EDF NF. In line with the CAP 2030 strategic plan, the EDF Renewables subsidiary is accelerating its development in Latin America and notably in Brazil with a portfolio of: 400MW of solar energy from Pirapora power plant (one of the largest solar ■ power plant of Latin America located at Minas Gerais State); 600MW of wind energy in development in the state of Bahia. ■ EDF is also present in Brazil via : Edison, of which the 50%-held subsidiary Ibiritermo operates a CCGT of 226MW ■ in the state of Minas Gerais; Citelum, reference company in municipal public lighting and management and ■ connected public service. In 2019, Citelum in Brazil renewed its contracts in Sao Francisco do Conde, Caixias and Goiania, set foot in the city of Valinhos and won a new contract in Imperatriz; Framatome, which is cooperating with Eletronuclear and Eletrobras through an ■ Agreement in the field of nuclear business, to promote existing and future nuclear power generation in Brazil. Part of the agreement is to contribute to the pursuit of the construction of the Angra 3 plant. Chile 1.4.5.3.5.2 Since 2013, EDF is jointly developing with its Chilean partner Andes Mining & Energy (AME) a gas to power project combining the design, construction, and operation of a CCGT-type power plant with a power output of around 600MW, a storage infrastructure and an LNG Floating Storage Regasification Unit (FSRU). Via its subsidiary EDF Chile, created in 2014 for this purpose, the Group has a 50% shareholding in the two project companies (Penco-Lirquén LNG terminal and El Campesino power plant), alongside BiobioGenera (50%) of which AME is the controlling shareholder. The project nonetheless suffered a setback when the Chilean Supreme Court, in a decision on 30 January 2017, revoked the permit for the Penco Lirquen regasification terminal. Various measures have been taken to further the Group’s expansion into electricity generation in Chile, including resuming the process to obtain a permit, which was finally granted in November 2019. In addition, in December 2017, the El Campesino power plant signed an agreement to acquire ESSA, the owner of a 750MW thermal generation asset. The closing of the operation occurred in May 2018.

Each electricity supplier (“Load Serving Entity”) is required to purchase a ZEC volume consistent with its market share in the State of New York. Recovery of program costs from customers who benefit from regulated tariffs is included in their electricity bills. The NYPSC has established that Ginna and Nine Mile Point nuclear facilities are eligible for the ZEC program. On 18 November 2016, agreements for the sale of ZECs for Ginna and Nine Mile Point were signed with NYSERDA. During the 2019 fiscal year, CENG recognised $357 million for the sale of ZECs. Environmental groups filed a petition, aimed at invalidating the ZEC program, in a New York state court on 30 November 2016. The petition was amended on 13 January 2017. This petition contends that NYPSC is not empowered to set up this program, that it violated state environmental law, and that it violated certain technical provisions of New York State law on administrative procedures (SAPA). On 15 February 2017, CENG filed a motion to have this case dismissed. On 22 January 2018, the court dismissed the environmental claims and the majority of the plaintiffs from the case but denied the motions to dismiss with respect to the remaining five plaintiffs and claims, without commenting on the merits of the case. On 8 October 2019 the New York Supreme Court issued a decision rejecting all the petitioners remaining claims. On 5 November 2019, the petitioners filed a Notice of Appeal in the New York Supreme Court Appellate Division, Third Department. The deadline for petitioners to perfect the appeal is 5 May 2020. EDF Trading in North America 1.4.5.3.4.2  EDF Trading operates in the North American markets for electricity (including transmission rights), gas, coal and environmental products. EDF Energy Services is the commercial and industrial retail arm of EDF Trading and provides management and optimization services to large-scale energy intensive commercial and industrial customers throughout North America (see section 1.4.6.3 “Optimization and trading: EDF Trading”). EDF Renewables in North America 1.4.5.3.4.3  EDF Renewables, through its subsidiaries EDF Renewables North America, EDF Renewables Canada and EDF Renewables Mexico continued its expansion in North America, commissioning 868MW gross of wind, solar photovoltaic and biogas capacity in 2019. EDF Renewables Services manages wind and solar projects, both for the company’s own accord and on behalf of third parties. Dalkia in North America 1.4.5.3.4.4  Dalkia, a wholly-owned subsidiary of the EDF group, is present in the North American energy services markets (local management of energy and energy efficiency) with 505 employees. Dalkia operates through its companies, Dalkia Energy Solutions (formerly Groom Energy Solutions) and Aegis Energy Services in the United States, and Dalkia EDF has an R&D and Innovation team (EDF Innovation Lab) located in Los Altos, California, which assists EDF group with research, development and innovation as well as with its development in the United States (see section 1.6.1.4 “EDF R&D partnerships”). To this end, EDF Innovation Lab analyses new technologies and start-ups, develops products and tests solutions locally. In 2016, this team identified the Company Off Grid Electric (OGE), EDF’s partner in the supply of competitive off-grid solar energy in the Ivory Coast (see section 1.4.5.3.9 “Off-grid energy”). Citelum in North America 1.4.5.3.4.6  Citelum, an EDF subsidiary in the field of urban road lighting, is also present in the United States (see section 1.4.6.1.2 “Citelum”). In 2019, Citelum has conducted the outdoor and indoor lighting inventory of 14 marinas along the East Coast from New Jersey to Florida for Safe Harbor Marinas. Framatome in North America 1.4.5.3.4.7 Operating in nuclear energy in the United States since the 1950s, Framatome holds a large share of the market, involved in providing power to some 36 million American households. Its mission consists in ensuring the maintenance and modernisation of the American nuclear plants in operation and providing it with the fuel required and supporting the potential construction of new plants (also see section 1.4.1.3 “Framatome”). Wastenergy in Canada (see section 1.4.6.1.1 “Dalkia”). Research & Development 1.4.5.3.4.5 

71

EDF | Universal registration document 2019