EDF_REGISTRATION_DOCUMENT_2017

ENVIRONMENTAL AND SOCIETAL INFORMATION − HUMAN RESOURCES Offer sustainable, safe and efficient energy

The methods favoured are those that provide guaranteed energy at competitive generation costs, but also sustainable in the long term, in such a way as to position them as credible alternatives to thermal generation: biomass, marine and river energies, waste recovery, biogas. EDF contributes to the advancement of technical capacities to integrate intermittent renewable energies through participation in development projects. Therefore, PEI (Production Électrique Insulaire), a subsidiary of EDF, participates ■ in the development of the Grand-Rivière Éolien Stockage Services project in Martinique, alongside EREN and NW Energy, which consists of installing seven 2MW wind turbines, coupled with 5MW Li-ion batteries that stabilise power generation and the network. In La Réunion, the DSEI, the start-up Powidian and the Syndicat d’Électrification ■ de la Réunion are deploying a 100% solar micro-grid along with completely independent hydrogen storage, with no time limit. This experiment is a world first. It makes a solution for isolated sites possible in a highly protected environmental context. In the villages of the Cirque de Mafate, which are not connected to the electricity grid, this experiment will allow several public buildings and individual houses to be connected. Communities on the islands of Sein, Molènes and Ouessant have a specific ■ ambitious goal: replace the fuel oil that gives them electricity today with 100% renewable energies by 2030. EDF SEI is assisting them in this energy transition, which has already begun. As a result, EDF is working towards energy autonomy for Île de Sein in 2030, for example, with the installation of an innovative micro-grid in 2017 for a huge influx of renewable energies. The EDF group has mobilised its skills and has installed, since this summer, an innovative and intelligent system for controlling the electricity grid by combining centralised storage and innovative algorithms. Innovative, miniature and automated dispatching is the key for remotely controlling all energy producers and storage. This tool will use EDF’s R&D and Store & Forecast custom algorithms to optimise the inclusion of the renewable energies while preserving the electricity system’s supply and safety quality. This innovation ensures constant supply demand balance in a constrained system and will gradually eliminate diesel engines. Biomass and geothermal energies Since the beginning of 2015, the Group has implemented a biomass sustainability policy that aims to foster growth in the use of solid biomass for the generation of electricity and heat, supporting and securing current and future investments in this domain. This policy is based on the principles of reducing greenhouse gases over the entire life cycle, preserving natural resources and biodiversity, respecting human rights and collaborating with stakeholders. With Dalkia, the EDF group is one of the leaders in energy services and a benchmark player in biomass energy in France. One of Dalkia’s major priorities to date has been the development of EnR&R (Renewable and Recovered Energies) including biomass and geothermal: the acquisition of Dalkia Biogaz and Tiru in 2017 will boost this development, for biogas and heat recovery in particular. One of Dalkia’s other major Sustainable Development priorities is the greening of heating networks. Dalkia’s medium to long-term strategy is to develop the use of renewable energies as much as possible, in particular biomass, geothermal energy, biogas and recovered energies, through the development of Dalkia Biogaz and Tiru and to combine the heat recovery from household waste incineration units with the heating network, recover industrial heat and develop seawater heating. Tiru continues its efforts in energy recovery from waste, through the development ■ of new treatment processes (production of SRF Solid Recovered Fuel) that combine energy services and recovered energy generation. Dalkia Biogaz has a strategy to develop a biomethane production fleet that will ■ replace fossil gas with renewable gas while contributing to the circular economy by recycling waste (the Energy Transition Law stipulates that biogas must account for 10% of gas in natural gas networks by 2030).

Some examples of biomass and geothermal projects: several major heating networks are under construction/in the process of being ■ launched: start of the Toulouse Métropole heating network; work to create a second 7.4km wood fired heating network in Alençon (heating network with biomass cogeneration; extension of the Lyon Métropole heating network; following the call for tender for Le Mans Métropole that was won in 2016, Dalkia ■ launched work to interconnect networks, connect to the energy recovery unit and renovate the boiler room; in October 2017, EDF’s Chairman and Chief Executive Officer inaugurated ■ Massileo© in Marseille, a temperate water network that supplies heating and cooling networks of buildings in the Marseille eco-district with 100% renewable energy: seawater heating, or marine heat energy; Dalkia Biogaz has signed a partnership with the L’Oréal group to carry out a ■ biomethanation project producing and supplying 34GWh of biomethane to the Group’s factories in the north of France. Innovation and research The EDF group has made innovation and research one of its distinctive features, developing initiatives approved by stakeholders and by investing heavily in research, through renewable energy R&D programmes. As part of CAP 2030, the EDF group intends to increase its R&D on energy storage, photovoltaic power, electric mobility and new networks. Societal innovation EDF group has innovated by developing crowdfunding initiatives for projects or technically and financially supporting the development of projects in the valleys where its hydroelectric facilities are located: crowdfunding of projects: after the first few crowdfunding campaigns launched in ■ France by EDF Énergies Nouvelles in 2015 and 2016, several crowdfunding initiatives were implemented for wind power projects in France; “One river, one territory” programme: to deliver on EDF’s commitment to ■ economic development and innovation in the hydropower valleys where it operates, EDF continues to support local economic development via its seven “One river, one territory” agencies. This programme, launched in 2012, is the result of a joint constructive approach bringing together local socio-economic players, multidisciplinary experts and EDF representatives. Commercial innovation Finally, to contribute to the development of renewable energies, EDF launched, in September 2017, its new subsidiary Agregio, an aggregator serving electricity producers with renewable generation capacities, and companies with load shedding capacities. For electricity producers, Agregio offers tailored solutions to optimise and sell their production on the markets and secure income over time. This is a strong expectation of renewable electricity producers, who no longer benefit from purchase obligations. Agregio is also aimed at industrial and tertiary consumers, who are willing to reduce or shift their consumption in exchange for compensation, according to the needs of the electricity system. Agregio will finally position itself as a local optimisation platform for regional projects to optimise production and consumption in a region. Agregio hopes to be the benchmark player in this sector and aims for a market share of 20% to 30% by 2020. Technological innovation The EDF group has an ambitious R&D policy around renewable energies and storage, amounting to €80 million per year. Research programmes are based on four objectives: reducing costs, improving the performance of mature technologies and optimising resources; promoting the major technological breakthroughs and the emergence of innovative solutions; modernising and adapting its facilities; contributing to the integration of EnR in the electricity systems.

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EDF I Reference Document 2017