Universal Registration Document 2020

Development of the fleet

In recent years, as part of the ambitious goals set in this area by the French government, EDF has undertaken several major development projects for its hydropower fleet (construction of a new 237MW turbine generator to equip the STEPat La Coche, renovation and capacity increase on the La Bathie plant to increase this facility to 600MW).

In October 2020, EDF commissioned the Romanche Gavet plant (capacity of 97MW for a generation capability of 567GW)⁽¹⁾.

EDF has also been active on the “small hydropower” segment, in particular through the development of so-called greenfield projects as part of CRE calls for tender(through its SHEMA subsidiary, EDF was thus awarded 5 projects with a total of 9.4MW), and through the implementation of a targeted acquisition strategy resulting in the acquisition of the Neuville-sur-Ain plant, with a capacity of 2.5MW, in 2020.

EDF intends to pursue this development dynamic by aligning itself fully with the goals set by the PPE for hydropower development.

This goal is being leveraged in a number of ways:

• increasing the capacity of infrastructures managed under concession: a provision in the French Energy and Climate Act of 8 November 2019 (now Article L. 511-6-1 of the French Energy Code) made it possible to use a declaration procedure to implement a capacity increase, subject to a number of conditions, including acceptance by the administrative authority in question;
• major projects are also being developed to address energy transition requirements, as well as the growing need to compensate for very low water levels in view of climate change. STEPs thus play a major role in energy transition and in integrating variable power sources in the French electricity system. EDF fully intends to enhance this hydro power asset via its storage plan, both in France and internationally. In particular, EDF is studying several STEP projects based on existing installations. In particular, EDF is heading up a major project in the La Truyère Valley, extending the La Truyère and Lot Amont concessions to address storage requirements. It was submitted by the French State in April 2017 to theEuropean Commission. An authorisation in principle is awaited prior to the formal notification process.
• development of hydro power projects in France’s overseas departments and territories to address the needs identified in these localities’ multi-year energy programs (PPE);
• continuing to develop reserve-flow turbines and new projects for equipment planned, in particular in the Loire and Dordogne Valleys;
• continued development of the "small hydropower" segment in metropolitanFrance (corresponding mostly to small and medium-output installations, producing less than 12MW for the most part, but sometimes up to 20-30MW), in two ways.The first aspect involves improving the performance of this segment within the existing fleet by providing dedicated asset management for these 237 plants (generation capacity of 5.5TWh in 2019), with the goal of securing a sustainably positive financial trajectory. The second aspect aims to achieve an additional 30MW from this segment by means of acquisitions and some disposals, and developing so-called greenfield projects, notably as part of CRE calls for tender.

Regional anchoring in hydropower valleys

EDF has always taken care to ensure the sustainable and shared development of the hydropower valleys and the economic regions close to generation facilities. These regions, often rural and sometimes isolated, are always looking to adapt to the changes in their environment: economic, societal or even climatic.

EDF has a clear commitment to strong local roots in this respect, combining a stance as a responsible concession manager based on dialogue with co-building alongside all stakeholders, supporting local economic development through its "Une rivière, un territoire" (“One River, One Territory”) agencies.

EDF’s “responsible hydroelectric concession manager” policy is characterised by collaborative work with economic, political, and non-profit stakeholders, together with residents living close to the hydro power infrastructures being operated.

It is structured around two main pillars:

• maximising economic outcomes of hydroelectric activity for “hydro territories”,thus providing networks of local industrial resources (supplier panels list over 1,000 local companies specialising in various hydro lines of business), together with local services that benefit all stakeholders in the valley. In this respect, the assessment of the employment footprint of EDF’s hydroelectric activity in metropolitan France suggests the existence of some 3,994 indirect jobs;
• as well as ongoing dialogue with stakeholders in “hydro territories”, mainly through:

The local commitment aspect of EDF’s hydropower activities also took on a very special dimension in 2020, due to the Covid-19 crisis. EDF helped with the economic recovery of “hydro territories” through major support for summer tourism:

• the development of exceptional activities, in particular through industrial tourism focusing on our dams and reservoirs, included in local tourism projects;
• special care for the shores of dammed lakes to support water sports;
• and lastly, enhanced mobilisation to ensure the safety of the very large numbers of visitors to river banks in the summer of 2020, in particular through the hydro-guides scheme.

In 2012, EDF launched a dedicated “One River, One Territory” programme. Since 2013, this local programme has created or maintained over 500 jobs in the valleys by means of loans to over 50 local companies. This involves the creation or preservation of some 800 jobs by 2023. The 8 “One River, One Territory” agencies roll out action strategies tailored to their respective localities, aimed at:

• integration through (and benefiting) employment;
• developing sustainable economic activity in the valleys;
• assisting public and private-sector project promoters;
• and developing innovation in these largely rural areas.

Against the exceptional backdrop of the health crisis and its economic consequences,“One River, One Territory” launched two specific support procedures in the spring of2020:

• a “recovery loan” ( prêt rebond ) scheme was organised, aimed primarily at supporting the cashflow of our service providers and essential players in the economic and social life of our valleys, with funds totalling €1 million available until the end of 2021;
• furthermore, the “One River, One Territory Fund” (which helps local businesses with loans) organised specific aid for companies in its portfolio, agreeing to postpone their loan repayment instalments by 3-6 months. In addition, one-off local initiatives to bring forward orders or make financial gifts were put into place.