Universal Registration Document 2020

At the end of 2020, the EDF group operated only three remaining coal-fired power plants: the Le Havre plant, set to be shut down in spring 2021; the West Burton A plant, set to be shut down by 2024; and finally the Cordemais plant (FR), which is set to be shut down by 2026 but may be reconverted to biomass as early as 2022 (also see section 1.4.1.2.2 “Issues relating to thermal generation”). In 2020, coal-fired heat and electricity generation accounted for less than 0.6% of the EDF group’s total output. Irrespective of their capacity, these production assets are actually used only during “peak” periods to play a role in guaranteeing the balance of the system. As a result, their operation and subsequent emissions are very limited.

3.1.1.3.2 Energy transition in island regions

Corsica and the French overseas territories, as Non-Interconnected Zones (NIZ) in terms of the mainland power grid, are covered by specific Multi-Year Energy Programmes ("PPE"), which set them ambitious carbon-free and energy independence goals (energy independence of overseas territories by 2030 and Corsica by 2050).

Fossil fuel-fired facilities, mainly oil or diesel generators and combustion turbines(CT), have historically played a major role in these zones. They can handle highly-seasonal electricity use, guarantee a secure supply and mitigate intermittent renewable energy input into electrical systems that cannot be switched to imports in case of peak demand or production issues.

To achieve carbon-free electrical production in the islands, the EDF group has put in place the following actions:

• progressive replacement of oil with liquid biomass for the SEI micro-network generators (with tests lasting over a month on the Island of Molène, in Brittany) and PEI generators (with testing on the Pointe de Jarry plant in 2020). As a result, the future Larivot plant in Guyana will be powered with liquid biomass, replacing the "Dégrad-des-Cannes" fuel plant, which is set for shutdown by the end of 2023;
• shutdown of the oldest oil-fired combustion turbines (CT) and generators as and when new generation resources with lower emissions become available;
• voluntary implementation of an energy management system (ISO 50001certification) on 7 of the 8 most important SEI fossil fuel-fired generation sites and output optimisation work on PEI facilities.

Section 1.4.4.3 “Island Energy Systems” provides a fuller description of the actions taken by EDF in the islands, such as measures to manage energy (e.g. solar water heaters), plans to increase the production capacity of active hydroelectric facilities, development of networks compatible with the integration of renewable energy (e.g. batteries, synchronous condensers, etc.).

3.1.1.3.3 Greener heating networks

The EDF group, through its subsidiary Dalkia, manages 330 urban heating and cooling networks. It is France’s number one energy service provider and one of Europe’s leading energy companies. Dalkia has set itself the goal of achieving 50% renewable and recovered energy (R&RE) in its energy mix by 2022, and achieved 41.3% in 2020.

This commitment has led to development of the use of biomass (wood energy, biodegradable household refuse, and biogas), recovery of waste heat, and geothermal and oceanic thermal energy conversion. Globally, coal accounted for 2.5% of 2020 heat production by Dalkia, which has committed to no longer use this fuel for its activities in France, in line with the provisions of the Multi-Year Energy Programme. Use of renewable energies and energy efficiency services enabled Dalkia to reduce its customers’ greenhouse gas emissions and allowed 4.1 million tonnes of CO₂e to be avoided in 2020 (see section 1.4.6.1.1 “Dalkia”).

3.1.1.3.4 Aligning the Group’s gas activities with its climate commitments

Gas activities account for a significant share of the EDF group’s GHG report, particularly through three activities: production of electricity from natural gas, production of heat from natural gas, and sale of natural gas to end customers (residential customers, businesses, and local authorities).

Because natural gas emits approximately two times less CO₂ than coal, and enables the production of electricity that can be managed ahead of time, it can play a role in the energy transition of some countries, like Italy where it replaces coal. Nevertheless, natural gas remains a fossil fuel, emits CO₂, and is incompatible (except in case of use of CO₂ capture and storage) with the achievement of carbon neutrality by 2050 to which the EDF group and more than 120 countries have committed.

In 2020, the EDF group set various internal “responsible gas” criteria to align its gas activities with its climate commitments:

• multi-disciplinary criteria: all the EDF group’s gas activities fit into the carbon trajectories (covering both direct and indirect emissions) set for each of theGroup’s entities in line with the Group’s 2030 goals. All development projects must demonstrate their contribution to the regional energy transition and integrate compliance with the Group’s 2050 carbon neutrality plan into their business plan;
• additional electricity production criteria: no development of new gas projects (Combined Cycle Gas – CCG), unless the project contributes to reducing the carbon intensity of the country’s electrical system or further secures its supply.When technically and economically feasible, the project uses solutions enabling reduction of its direct emissions, such as green gas, hydrogen or CO₂ capture and storage;
• additional gas sales criteria: the EDF group is assisting its gas customers to achieve sustainable energy use and energy efficiency and to reduce their emissions through its solutions, expertise and specialist subsidiaries; it develops and promotes alternative solutions to fossil fuels when accessible (electricity, heat pumps, renewable gas, renewable heat, etc.).

However, it should be noted that the EDF group’s means of action to achieve this last goal are limited as long as regulators and public authorities fail to establish a clear regulatory framework, particularly promoting the selection of zero-carbon residential heating solutions.

Furthermore, the EDF group supports the development of the biogas sector, particularly through its subsidiary Dalkia Biogaz, a subsidiary fully-owned by Dalkia group, specialised in biogas production, processing and recovery activities, both for cogeneration and direct injection into the natural gas distribution network.

Finally, the EDF group is constantly working to optimise the energy and environmental performance of its fossil fuel-fired fleet in order to reduce its CO₂ emissions, as well as to provide more services to the electricity system as the latter is called on to incorporate an ever-higher quantity of intermittent renewable energy that cannot be managed ahead of time.

3.1.1.3.5 Reduction of SF₆ and HFC emissions

Fluorinated gases such as sulphur hexafluoride (SF₆) and hydrofluorocarbons (HFC)are powerful greenhouse gases. For example, the global warming potential of SF₆ is 23,500 times higher than that of CO2 and the GWP of HFCs is up to 12,400 times higher than that of CO₂. Their emissions in 2020 were estimated for the entire EDF group to a total of 51.5k tonnes of CO2e, i.e. approx. 0.2% of EDF group direct emissions (scope 1).

SF₆ is used as an insulating gas in electrical transmission and distribution systems.Emissions are produced by leaks and losses when these systems are serviced. In 2004, EDF signed a voluntary commitment to cut the SF₆ emissions of all of its high and medium-voltage electrical systems. These actions are monitored by the Group’sEnvironmental Management System (EMS). Based on a proactive policy, the NuclearGeneration Division in France managed to reduce its SF₆ emissions by 84% between 2008 and 2017 and set up a plan of specific actions designed to restore all its facilities to their initial leakage rate, i.e. 1% a year. Distribution network manager Enedis has thus set itself the goal of stabilising its SF₆ emissions at 330kg per year.

Wherever technologically and economically possible, the EDF group uses alternative technologies to SF₆. A vacuum and pressurised dry air-insulated circuit-breaker (without SF₆) has been tested on an EDF Hydro production site. The same type of air insulation technology has been adopted for the EPR2 project’s Energy RemovalPlatform⁽¹⁾. The network distribution manager Enedis has developed a new technical series of high-voltage vacuum breakers for primary medium- and high-voltage substations, the first of which were installed in 2020.