EDF_REGISTRATION_DOCUMENT_2017

ENVIRONMENTAL AND SOCIETAL INFORMATION − HUMAN RESOURCES Meeting the challenges of climate change

Regarding the “Réseaux Electriques Intelligents” (REI) smart grid project launched by the French government, 2017 was marked by the implementation governance structures for the three winning projects coordinated by regional authorities: SMILE (Brittany and Pays de la Loire), Flexgrid (PACA) and You&Grid (Hauts-de-France). The SMILE project’s stakeholders therefore formed an association in February 2017. These smart grid showcase projects are structured around: regional project portfolios focusing on self-consumption, data, electric mobility, ■ etc.; large-scale deployment of smart grid technology on electricity grids, in which ■ Enedis is set to invest €40 million between 2018 and 2020, specifically in the SMILE and Flexgrid zones. Furthermore, the association Think Smartgrids, chaired by Philippe Monloubou, Chairman of the Enedis Executive Board, today boasts 100 members (20 new recruits in 2017). The association has continued its initiatives abroad through numerous trips and meetings with foreign offices. In particular, trips to Asia have enabled it to formalise cooperation with Singapore and Indonesia, as well as an agreement for the launch of a microgrid demonstrator in the bay of Singapore. Lastly, Enedis and ADEeF (Association of electricity distributors in France), performed a study on smart grid solutions in 2030, in order to assess costs and benefits for the region. This study gave rise to an initial assessment of smart grid solutions, particularly of the contribution of flexibility to the region’s distribution network. In Belgium, EDF Luminus is involved in a number of projects in Flanders and Wallonia: Smart city Genk: EDF Luminus performed a comprehensive audit of street lighting ■ in Ghenz, serving as the basis of the future lighting plan presented to residents in 2017, helping to reduce costs and improve comfort, through changes in the lighting system. In the long term, LEDs will be installed, thus reducing CO 2 emissions; Smart city Gand: EDF Luminus continues to expand its heating network project, ■ with the connection of new sites; Smart City Liège: EDF Luminus is assisted by the Province of Liège in the ■ development of public charging stations. In Italy, Edison recently acquired Comat Energia Srl, which provides urban biomass heating solutions to villages. The business is geared towards the optimisation and promotion of local energy resources. Discussion with regions is also growing, thanks to strategic cooperative agreements with local and national stakeholders. For example, an agreement was signed with Politecnico di Torino for the creation of an “Energy Centre” and Master’s degree in energy efficiency. TO CLIMATE CHANGE (2) Climate change has direct impacts on the physical conditions for performing the Group’s activities, as well as indirect impacts such as changes in energy demand and the competitive environment. Since 2010, the EDF group has been implementing a climate change adaptation strategy which aims to provide a solution to the expected climatic conditions, in order to reduce or avoid their harmful effects and to seize the beneficial effects. This strategy, in the process of being revised, firstly concerns the involvement of the R&D services, to tailor the data required to model the future climate to anticipate impacts as well as solutions; on this basis, this then means anticipating the measures to be taken with regard to existing industrial facilities and for the design phases, as well as planning for the generation/consumption maximisation measures; it also means adapting internal know-how, as well as the products and services offered by the Group to its customers. ADAPTING THE GROUP’S BUSINESS 3.3.2

In France, EDF meets the requirements of local authorities and their elected representatives, who have to reconcile local appeal, compliance with environmental requirements, controlling urban sprawl, and for whom energy is a major concern. EDF performs energy studies in order to assist local authorities define their regional energy strategy (study of potential renewable energy sources, the most suitable energy solutions, the residential renovation strategy, etc.) by using its ISEO and MONSTER tools, helps local authorities with their TEPCV files, and undertakes numerous communication campaigns. EDF also distributed over one million LEDs in eligible regions. With the extension of the Lyon’s urban heating and cooling networks, Dalkia developed the first low-carbon smart thermal grid in France, using state-of-the-art digital technology for urban modelling and strategic planning, by making use of local partnerships. This is an ambitious project, promising economic development and the creation of jobs. The network will reach a RES (renewable energy source) rate of 65%, with a significant reduction in CO 2 emissions. In the Nanterre Cœur Université eco-neighbourhood in the Hauts-de-Seine region, Optimal Solutions, a Dalkia subsidiary, is developing the first private dual smart grid in France, both thermal and electric, in partnership with Bouygues Immobilier. The grid is smart in two ways: first, it is a thermal smart grid, as it connects separate buildings (offices, housing, shops), pools the needs of occupants and enables buildings to share heat. secondly, it is an electric smart grid as it generates part of the electricity required for its own operation. SEI launched the Sunny Mouv project in Reunion, involving charging management based on a dispatch signal, aiming to promote the charging of electric vehicles during low-carbon generation periods and by avoiding demand spikes, and opened the Mafate (POWIDIAN) hydrogen microgrid. SEI is also preparing to develop 100% renewable microgrids in other locations (Sein, Ouessant, St Georges de l’Oyapock, Maripasoula, etc.) SEI is also assisting Bouillante in Guadeloupe in entirely overhauling its street lighting, in favour of high-efficiency LED lighting, through crowdfunding. This initiative, which comprises 1,000 lights, will enable the city to halve its street lighting electricity consumption. The Thermal Generation Department is actively contributing to the Clean-tech Vallée project in the Gard region, alongside other Group players and regional stakeholders: following the definitive shutdown of the Aramon power plant in April 2016, a regional assessment performed by EDF has revealed the development potential in “Clean tech” in the region. This assessment has given rise to a revitalisation programme centred around three priorities: Industrial development, energy transition and the development of local projects, in close connection with the nearby Tricastin power plant. Électricité de Strasbourg, as part of the Eurométropole de Strasbourg’s sustainable development strategy, specifically looked at quai-side supply for excursion boats, in order to launch projects that will have a significant impact on air quality. One of Citelum’s major priorities is the energy efficiency of public and indoor lighting. In order to achieve energy savings in this area, Citelum implements dimming and remote management solutions, demand analysis software, and offers its customers its MUSE lighting management platform. A consortium comprising Bouygues and Citelum won a highly innovative contract in Dijon. Digital operating data for all of the public services will be reported in real-time to a single command centre. Users will be able to report any problems, engage support functions, and will be informed of the results. Enedis (1) , the network operator, started developing a smart grid programme in 2011. The specific aim of this programme is to gain experience from a system perspective of the different aspects of smart grids. The goal is to actively help with the energy transition by continuing to integrate renewable energies in the electricity distribution network, developing new uses such as electric mobility and favouring the development of actions for demand side management of energy and capacity.

3.

Enedis is a fully independent subsidiary. (1) The materiality matrix identifies the adaptation of infrastructure and operations to the consequences of climate change as one of its key priorities (materiality issue no. 19 (2) Adaptation of infrastructure and operations to the consequences of climate change). This refers to the adaptation of infrastructure to natural disasters, climate change (particularly rising ocean temperatures and declining rainfall), or any major weather event, the scale of which is difficult to predict.

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EDF I Reference Document 2017