EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Description of the Group's activities

The EDF group’s activities in Italy 1.4.5.2.2 As of the end of 2017, the Group was mainly present in Italy through its 97.446% shareholding in Edison, which is a major player in the Italian electricity and gas markets and a well-known Italian brand.

Since 1 April 2016, Fenice, a wholly-owned EDF subsidiary specialised in environmental services, has been integrated into Edison. This operation is consistent with the strategic objective of Edison to become a key player on the Italian market for energy services, with a more complete and diversified offering. The EDF group is also present in Italy through Citelum and the Italian subsidiary of EDF Énergies Nouvelles.

1.

Installed capacity and output of Edison in 2017

Other renewables (6) 1,067GWh 5%

Other renewables (3) 607MW 9%

Hydropower (5) 2,215GWh 11%

Hydropower (2) 1,134MW 17%

6,541MW

20,622GWh

Thermal (1) 4,800MW 74%

Thermal (4) 17,340GWh 84%

Installed capacity

Output

(1) Including Generation 4,621MW and Services of Energy Efficiency with the customers 179MW. (2) Including Generation 1,132MW and Services of Energy Efficiency with the customers 2MW. (3) Including Generation 604MW and Services of Energy Efficiency with the customers 3MW. (4) Including Generation 16,469GWh and Services of Energy Efficiency with the customers 871GWh. (5) Including Generation 2,209GWh and Services of Energy Efficiency with the customers 6GWh. (6) Including Generation 1,064GWh and Services of Energy Efficiency with the customers 3GWh.

The national demand for gas was 74.7Gm³, up by +6.1% in comparison with 2016 due to a 8,7% increase in the use of gas for electricity production linked to an increase in electricity consumption and lower hydropower and coal-fired thermal power output. Industrial use also rose by 6.9%, and residential consumption by 3.5%, as a result of lower winter temperatures. Natural gas imports in Italy represented 93% of the country’s demand, and Edison made 22% of these imports, i.e. 15.1Gm 3 .

In 2017, electricity consumption on the Italian market was 320.4TWh, up 2.0%, or 6.1TWh, due to particularly high temperatures during the summer months. Increased consumption was covered by an increase of 0.7TWh (+2.0%) in net imports and net power generation, amounting to 285.1TWh in 2017 (+5.3TWh vs. 2016). The 4.6% rise in thermoelectric output, in particular gas-fired power, and a 14.0% increase in solar power more than offset the 14.3% drop in hydraulic generation. Based on power generation data for 2016 (1) , Edison is the third-largest producer at the national level, after Enel and Eni. In 2017, it’s net electricity output in Italy was 19.7TWh, which accounted for around 7% of net Italian electricity generation.

Data published by the AEEG. The 2017 data will be available mid-2018. (1)

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DF I Reference Document 2017