EDF_REGISTRATION_DOCUMENT_2017

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PRESENTATION OF EDF GROUP Description of the Group's activities

Changes and outlook Investments to modernise and reinforce the electricity generation fleet with guaranteed capacity In accordance with the 2009 Multi-year Investment Programme, the EDF group has undertaken to replace the main power plants which are at the end of their useful lives. The new power plants will be constructed and operated by the EDF subsidiary PEI (Production Électrique Insulaire). The construction sites for four diesel power plants were completed successfully between 2012 and 2015, for a total net capacity of close to 746MW: Port-Est in La Réunion, Bellefontaine B in Martinique, Pointe-Jarry in Guadeloupe and Luciana B in Haute-Corse. These new generation resources, equipped with innovative technologies, allow the Group to deliver better industrial and environmental results and contribute to satisfying a part of the emerging electricity demands in these regions. The extension of the Saint-Barthélemy power plant (two new generators of 16MW) and the renewal of the power plant on Saint-Pierre-et-Miquelon (21MW) have respectively been operational since 2014 and 2015. The Saint-Martin power plant was delivered in end June 2016 for an installed capacity of 40MW. In total, EDF invested €80 million in IES electricity generation in 2017. Investments in electricity networks The continued growth in consumption in these regions despite the energy efficiency actions undertaken, as well as the development of renewable energies, have led the EDF group to continue the reinforcement of the electricity networks. In Corsica as in the overseas departments with natural fleets, some of the new high-voltage connections will be built using underground or underwater techniques. EDF thus invested €200 million in networks in 2017. A commitment to projects devoted to a better integration of renewable energies in the electricity generation mix and to optimising the management of electrical systems The energy transition Law stipulates that France’s overseas territories must be energy self-sufficient by 2030. The EDF group supports the emergence and development of electricity generation methods based on renewable energies adapted to IES. The methods favoured are those that provide abundant and 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. Studies are also underway on the use of LNG to substitute fuel oil. EDF also contributes to making advances in technical capacities relating to the insertion of intermittent renewable energies into IES and is committed to experimental projects on smart grids in partnership with other industry actors, research laboratories and the ADEME. Work is also ongoing to create micro-networks 100% powered by renewable energies in certain isolated zones. In 2017, an innovative system combining photovoltaic, digital monitoring and storage was installed on the island of Sein, allowing for a 100% renewable electrical supply several hours each day. Extreme weather events in 2017 Hurricanes Irma and Maria Hurricane Irma struck the islands of Saint-Martin and Saint-Barthélemy on 6 September 2017. To deal with the aftermath of Hurricane Irma, IES teams, which received substantial reinforcement from the entire Group (including the Nuclear Generation Department (DPN), Thermal Generation and Engineering Department (DPIT) and Enedis), were mobilised and deployed exceptional measures to meet the challenge. Power was restored after five weeks. Separately, Hurricane Maria swept through Guadeloupe and Martinique to a lesser extent ten days later.

Reconstruction phase The means of generation were relatively spared. Reconstruction of the electricity grids began in 2018 and will take a long time. This work should improve the resilience of the grids and structures to extreme weather events. In addition, the deployment of digital meters on both islands will maximise efforts to manage the demand for energy and insert renewable energies onto the network. Électricité de Strasbourg 1.4.4.4 Électricité de Strasbourg (ÉS) is an Alsatian energy producer which is committed to the long-term energy and economic performance of its territory via its four activities: the distribution of electricity, supply of energies, energy services and the production of renewable energies. This portfolio of activities makes it possible for the ÉS group to better provide support to its customers in the energy transition. ÉS also provides services to Local Distribution Companies (Entreprises Locales de Distribution, or LDCs) in eastern France. The ÉS group is 88.64% owned by EDF, and the remaining shares are owned by the public and its employees. Its shares are traded on Euronext Paris. Distribution 1.4.4.4.1 Strasbourg Electricité Réseaux is responsible for public electricity distribution network management. Strasbourg Electricité Réseaux operates, maintains, develops and renews an electricity network of over 14,000 kilometres in the 400 Alsatian municipalities that chose ESR to operate their electricity distribution grids under concession agreement. These concession agreements were renewed between 1993 and 2001 for a term of 40 years. The territory serviced covers three quarters of the Bas-Rhin department and includes more than 520,000 points of delivery for low- and high-voltage (A and B) power, as well as connections with the Enedis network and two other downstream network operators. In order to comply with recent developments in the French Energy Code, ÉS engaged in a process to create subsidiaries for its distribution activities at 1 st May 2017. Sales and marketing 1.4.4.4.2 ÉS Énergies Strasbourg is the sales and marketing subsidiary of the ÉS group. ÉS Énergies Strasbourg provides energy to nearly 500,000 electricity customers (including renewable), and 110,000 gas customers, to both residential and business customers (services and industrial sectors) or to communities. In addition to supplying electricity and gas, ÉS Énergies Strasbourg offers related services such as electricity, gas and plumbing corrective maintenance and digital services designed to help customers better understand their electricity bill and better manage their consumption. Separately, for its residential customers, ÉS Énergies Strasbourg has continued the implementation of support services in renovation and construction of the home, via a portal enabling customers to be in direct contact with a network of local partners. Following the end of the regulated sales tariffs for over 36 kVA in electricity and over 30MWh in gas, ÉS sells 50% of its electricity volumes and 75% of its gas volumes based on the market offering. Competitive offers and its strong local base have enabled ÉS to retain a significant market share. Energy services 1.4.4.4.3 ÉS Services Énergétiques was born out of the association between Écotral, the energy services subsidiary of ÉS, and Dalkia Bas-Rhin, on 1 January 2016. The entity produces and operates energy services installations intended for local governments, homes, healthcare, the tertiary sector and industry. In 2016, in partnership with another operator, ÉS Services Énergétiques took over the public service delegation of the heating network for the districts of Hautepierre and Poteries de l’Eurométropole in Strasbourg, providing heating to around 16,000 homes. In addition, ÉS Services Énergétiques operates and maintains the Strasbourg biomass electricity power plant in Port du Rhin; provides assembly services for the Safran group on its Molsheim site; produces, operates and maintains thermal plants in the new Saint Urbain development zone; and is entrusted with the lighting of the church of Saint Thomas, a historical building in Strasbourg listed as a World Heritage site by UNESCO.

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DF I Reference Document 2017