EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Description of the Group's activities

the 2020 target reductions of NO x ■ reached thanks to the closure of the oldest coal-fired units (finalised in 2015), the closure of most oil-fired units and the growing share of CCGT plants in thermal generation. Generation and technical performance 1.4.1.4.3 Thermal generation in 2017 amounted to 16.1TWh with a sustained operation and by late October had exceeded generation for the whole of 2016. In 2017, coal units supplied 6.1TWh, CCGT plants supplied 9.0TWh, oil-fired units 462GWh and combustion turbines 530GWh. In its first full operating year the Bouchain CCGT plant generated 3.0TWh and beat the Blénod CCGT plant's 2016 record with more than 6,500 operating hours. Several units broke their 2016 operating records: for instance Montereau cofiring turbine no. 5 reached 113 operating hours and the two Martigues CCG turbines generated 4.1TWh. Minimising unplanned outages is the essential aim for facilities such as thermal plants, used for mid-merit and peak generation. Minimising unplanned outages is the essential aim for facilities such as thermal plants, used for mid-merit and peak generation. The priority for these means of generation required on a variable basis all year round is to ensure system security by ensuring maximum reliability and availability. The reliability of the thermal fleet was confirmed in 2017 and meets European standards. The fleet’s adaptability to a substantially higher level of operation than initially planned was demonstrated. During the cold snap of January 2017 the thermal fleet came through. It reached record levels of 7,630MW on the morning of 20 January and 7,780MW on the evening of 25 January with a maximum potential generation of 8,590MW and all means of generation on the grid. The response rate achieved by combustion turbines to requests from optimisation services and from RTE was very good. In a tense balance between supply and demand, the combustion turbines fully played their role in maintaining the system’s safety. Decommissioning of shutdown units EDF has planned all of the decommissioning operations on its thermal fleet units which were shut down or whose shutdown is scheduled. The provisions for these , SO x and dust emissions have already been

operations have been made in an amount that corresponds to the cost of decommissioning all of the units being operated and the clean-up of the sites (see section 6.1 “Consolidated financial statements at 31 December 2017”, note 30 to the consolidated financial statements for the year ended 31 December 2017). In 2017, EDF continued the decommissioning work on sites that have been definitively shut down. In particular Richemont units 1, 2 and 3 (blast furnace gas) were successfully demolished by semi-caving in June. Renewable energy generation 1.4.1.5 Renewable energy (1) (hydropower, wind, solar, biomass, geothermal, marine etc.) has seen robust growth worldwide. Hydropower is the number one renewable energy in the world, with an estimated combined installed capacity of 1.26TW in 2017 (2) . It has significant prospects for development in certain regions, even though it is close to its maximum operating potential in many developed countries. According to the IEA, from 2018 to 2022, hydropower is expected to account for about 13% of new capacity. The combined installed onshore wind capacity is expected to be 500GW worldwide at the end of 2017, with more than 170GW in China. In 2017, it is estimated that 48GW of wind energy was commissioned worldwide including around 19GW in China (3) . In solar photovoltaic power, total global installed capacity is expected to be 380GWc at the end of 2017, of which around 78GWc from new capacity built in 2017 (4) . Today, it is largely wind, solar and biomass that are driving growth in renewable energy. The EDF group is now the leading producer of renewable energies in Europe and specifically the leading supplier of hydropower in the European Union; hydropower generation represents the Group’s most important renewable energy, with an installed capacity of 23GW and 301 (5) large dams in the world. The Group plays a role in the rise of competitive sectors, particularly wind and solar.

1.

Renewable, or “green” energies, are derived from natural resources that are replenished quickly enough to be considered non-depletable in human terms. (1) Source: International Renewable Energy Agency (IRENA), Capacity Statistics 2017. (2) Source: Bloomberg New Energy Finance. (3) Source: Bloomberg New Energy Finance. (4) Regarding the French classification (décret 2015-526) relating to class A and B dams (with an height exceeding 10 meters). Number of dams in gross, regardless of the equity (5) interest of EDF group in these dams. Number of dams in net: 270.

33

DF I Reference Document 2017