EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Description of the Group's activities

Average generation capability over 50 years

Category Run-of-river Lake-supplied

Capacity 3.6GW 8.9GW 3.1GW 4.2GW 240MW

17.2TWh 15.8TWh 8.8TWh 1.1TWh 0.5TWh

1.

Pondage

Pumped-storage

Tidal

Hydropower safety 1.4.1.5.1.2 Hydropower safety comprises all the measures taken when designing and operating hydropower plants to reduce risks and hazards to people and property associated with water and the presence or operation of facilities. Hydropower safety is a constant concern of the highest priority for plant operators (see section 2.2.2.4.2“The hydropower field”). It involves three main activities: the management of operational risks, by providing information to users ■ (communication campaigns, information of the employees operating on waterways, hiring “hydro-guides” during the summer months) about changes to water levels or flow fluctuations in downstream waterways; the management of facilities during periods of exceptionally high water levels, in ■ order to ensure safety at the facilities and for the surrounding communities; measures to address the major risk associated with dam or reservoir failures, ■ through the regular monitoring and maintenance of facilities under the supervision of public authorities, mainly the French regional environment, land use and housing authorities (Directions Régionales de l’Environnement, de l’Aménagement et du Logement – DREAL). Among the largest dams, 68 are subject to a specific administrative procedure (plan particulier d’intervention – PPI) implemented by the relevant prefectoral authority. EDF performs regular monitoring and maintenance of dams, in particular by means of continuous structural health assessments. In addition, a safety review is carried out every ten years on each of the 150 large dams, which includes a complete assessment made using underwater equipment or by emptying the reservoir. These operations are carried out under the supervision of public authorities (the DREAL office at the regional level as well as the Service technique de l’énergie électrique des grands barrages et de l’hydraulique, and STEEGBH, the central French government agency specifically responsible for large dams and hydropower facilities). Moreover, comprehensive safety studies are a statutory requirement for the owner or operator of a dam: as such EDF, which has 240 hazard studies covering all works subject to this requirement, delivered in 2017 to the Control Department of the French Government the update of five hazard studies and conducted 145 of the 156 safety reviews scheduled by 2018. They consolidate a satisfactory (1) overview of the structures and associated countermeasures. In 2017, the hydropower safety of EDF’s fleet remained satisfactory with one hydropower safety incident (EISH) classified as “orange” (an incident that placed people in danger within the meaning of the Decree dated 21 May 2010). 11 EISH classified as “yellow” (incidents reflecting non-compliance without putting anyone in danger) were recorded this year. The key indicators are still at good levels: detection of significant (nonserious) events (ESSH level 0) by the local teams ■ increased with 3,613 events detected (vs 3,391 in 2016); the number of incidents with external effects (ESSH level ≥ 1) is low: 32 incidents ■ took place; the number of sites downstream of facilities with high sensitivity to risks related ■ to variations in water flow fell from 114 in 2005 to 12 in 2016 and 2017; the management of hydropower facilities was properly handled during the floods ■ that occurred this year. Control of risks associated with the facilities ageing is a major concern in hydropower safety and has been strengthened, and the long-term maintenance policy was updated in 2012. With close to €600 million invested in hydropower

safety between 2012 and 2017, EDF devoted a significant portion of its maintenance budget thereto. Since 2006, the engineering programmes for the safety and performance components of the hydropower fleet in operation have continued with a high level of investment, ensuring the careful management of major safety-related activities and providing them with national visibility. The goal is the technical updating and improved maintenance of the facilities, in order to maintain a high level of hydropower safety and preserve the technical performance of the fleet over the long-term. At the end of 2017, 486 specific systems and measures (2) were being carried out, down from 2016, and were being monitored in five priority facility groups, namely galleries, pipes, dams, penstocks and floodgates. Performance of the hydropower generation 1.4.1.5.1.3 fleet A highly-automated and remotely-managed fleet In order to take advantage of the flexibility of its hydropower generation facilities, for some years now EDF has been initiating ambitious programmes involving automation, remote control of hydropower plants and centralised management of the valleys. Currently, the largest plants in EDF’s hydropower fleet, representing over 15GW (around 75% of its installed hydropower capacity) are remote-controlled from four control centres able to make adjustments to the plants’ operating programmes at any time in order to respond to the needs of the electrical system and to economic opportunities arising on the electricity market. In order to improve their reliability EDF connected the largest power plants to five regional operating centres in charge of overseeing the physical settings of machines, such as temperature and vibration, allowing any deviations to be detected as early as possible and thus avoid incidents. Technical performance of the fleet and hydropower conditions in 2017 Hydropower generation may witness substantial variations from one year to the next, depending on climatic fluctuations in water resources. Hydropower generation in 2017 fell due to highly unfavourable hydrological conditions with some of the driest months on record. Hydropower electricity generation before the deduction of the power needed to operate pumped-storage plants was 37.1TWh in mainland France and 30.1TWh net of consumption by pumped storage. The 2017 generation indicators show a highly satisfactory level of performance with a historically low rate of internal loss (3) of 3.5% (4.5% in 2016). The overall availability of the hydropower fleet, i.e. the percentage of time over the year during which the power plants are available at full capacity, was 99.31% in 2016 compared with 99.32% in 2016. Unavailability of EDF’s hydropower fleet is 15.1% for servicing and maintenance work on the assets (planned unavailability) done during maintenance of facilities, and 2.3% for extensions of work and breakdowns (unplanned unavailability). In 2011 EDF also began an ambitious modernisation project to improve the industrial performance of its hydropower fleet for an overall amount of € 2010 840 million by 2021. This project, known as “RenouvEau”, aims to modernise the maintenance and operation of the hydropower fleet, specifically via the renovation of electrical facilities, control monitoring and computerised management, maintenance and operating tools, in order to improve the security, operating performance and competitiveness of the hydropower fleet. The full roll-out of the project will end before 2020.

For further details, see the 2016 report of the Inspector of Hydropower Safety, available on EDF’s website. (1) A specific system or measure is a temporary measure to prepare an acceptable level of security, performance and individual safety. (2) Internal loss is the energy from flows that do not pass through turbines which were not stored. The rate of internal loss is obtained by dividing the internal loss by the generation (3) performed during the year, and then adding the internal loss.

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DF I Reference Document 2017