EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Research & development, patents and licences

The authorisations relating to the generation and transmission works necessary for the development of offshore wind farm projects are subject to a specific litigation framework, laid down by Decree No. 2016-9 of 8 January 2016. Regulations applicable to public 1.5.6.2.7 procurement Directive no. 2014/24/EU on Public Procurement and Directive no. 2014/25/EU on Procurement by Entities Operating in the Water, Energy, Transport and Postal Services Sectors, to which EDF is subject as a purchaser, have been transposed into French domestic law by: order no. 2015-899 of 23 July 2015 on public procurement contracts, which ■ unified the various competitive tendering procedures that previously existed in the French Public Procurement Code and Order no. 2005-649 of 6 June 2005; decree no. 2016-260 of 25 March 2016 that implemented the Order of 23 July ■ 2015. These texts entered into force on 1 April 2016. ENERGY MARKETS Inspired by the rules contained in Directive no. 2003/6/EC on Market Abuse applicable to financial markets (see section 4.1 “Corporate governance code”), regulation (EU) no. 1227/2011, known as the “REMIT” regulation, on wholesale energy market integrity and transparency came into force on 28 December 2011. This regulation is aimed at preventing market abuse and manipulation on wholesale energy markets and strengthening the confidence of market participants and consumers. Strengthening wholesale energy market integrity and transparency must foster open and fair competition on these markets, in particular so that prices set on these markets reflect a fair and competitive interplay between supply and demand. The regulation prohibits insider trading and market manipulation, and establishes an obligation to publish inside information as defined in the REMIT. The European Agency for the Cooperation of Energy Regulators (ACER) is primarily responsible for monitoring wholesale trades in energy products, in order to detect and prevent transactions based on inside information and market manipulations. ACER also collects the data needed to assess and monitor markets. The regulation provides that market participants, or a person authorised to do so on their behalf, provide ACER with a detailed statement of the transactions in the wholesale energy market. Lastly, market participants that perform transactions for which a declaration to ACER is mandatory must register with the national regulatory authority of the Member State in which they are established (the CRE in France) or, if they are not established in the European Union, that of a Member State in which they do business. REGULATIONS ON WHOLESALE 1.5.7

The Grenelle 2 Law also contains exceptional provisions designed to encourage the development of sea-based energies, which were enhanced by the Law of 17 August 2015 on Energy Transition for Green Growth. In addition, Article 18 of Law no. 2014-1545 of 20 December 2014 on the simplification of corporate life empowers the Government to set up a dedicated, comprehensive authorisation system for sea-based facilities that produce renewable energy and that are located in the maritime public domain, and for the connection structures for these facilities. Moreover, Decree no. 2016-9 of 8 January 2016 simplified the legal procedures that are applicable to sea-based renewable energy projects that win competitive tendering procedures. Furthermore, the Law of 17 August 2015 on Energy Transition for Green Growth provides an exceptional appeal timeframe for the benefit of “facilities that produce energy from renewable sources” of four months in which to contest an authorisation, as from, respectively, either the publication of the authorisation, or its notification. Regulations applicable to wind power 1.5.6.2.6 generation Pursuant to Articles R. 421-1 and R. 421-2 of the French Urban Planning Code, a building permit must be obtained for land-based wind farms with a height equal to or greater than 12 metres. However, the environmental authorisation granted for the completion of an onshore wind farm project is exempted from the requirement for a building permit, in accordance with Article R. 425-29-2 of the French Urban Planning Code. For its part, the construction of wind farms on the public maritime domain is exempted from the requirement for a building permit, in accordance with Article R. 421-8-1 of the French Urban Planning Code. In addition, the Grenelle 2 Law provides that onshore wind farms are now subject to the nomenclature applicable to ICPEs with the legal system of authorisation or declaration (see section 1.5.6.2.1 “Regulations applicable to facilities classified for the protection of the environment (ICPEs)”) under section 2980 “Terrestrial facilities for the generation of electricity using mechanical wind energy with one or more wind-power generators”. In connection with the application for a building permit, an impact study must be performed for wind farms that are subject to authorisation and submitted with the building permit file. The Law of 17 August 2015 on Energy Transition for Green Growth amended the rules on the distance required between wind farms and housing: the minimum distance of 500 metres is maintained, but may be increased in light of the impact study, which is part of the authorisation application. It also inserted provisions into Article L. 146-4.I of the French Urban Planning Code that are designed to facilitate the location of land-based wind farms in municipalities concerned by the “Coastline” Law. A decree is also expected to clarify the rules on wind farm location with regard to military facilities and sectors, weather monitoring equipment and air navigation equipment. The operator of a wind farm, or in the event of default, the parent company, is responsible for decommissioning the farm and site restoration, as soon as operation is terminated for any reason (Articles L. 553-3 and R. 553-1 of the French Environment Code). For this purpose, the operator is required to lodge financial guarantees as of the start-up of generation and for subsequent accounting periods.

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RESEARCH & DEVELOPMENT, PATENTS AND LICENCES

the complementarity between nuclear generation and generation from ■ intermittent renewable energies in order to support the energy transition and reduce CO 2 emissions; water use and environmental management; ■ the rapid development of emerging countries and the resulting shift in ■ consumption areas;

The main missions of the EDF group’s Research and Development Division (R&D) are firstly, to support the group’s divisions and subsidiaries on a day to day basis, by providing them with its top-level expertise and high performance practices, and secondly, to contribute to build the group’s future by anticipating the developments

and major challenges with which it is confronted. In particular, these challenges include the following:

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EDF I Reference Document 2017