Regulatory notice
EDF’s hydropower generation business is subject to the substantive provisions of water regulations. Such regulations cover in particular control over variations in water levels and flow rates, the safety of areas in the vicinity and downstream of hydropower facilities and, in general, maintaining balanced management of water resources.
The dams operated by EDF in France provide storage capacity for nearly 7 billion cubic metres of water. As well as generating electricity, hydro power infrastructures are also used to help with water management, and thus represent a major contribution by EDF to local life and economic development.
Over and above being a hydropower supplier, EDF is therefore also engaged as a contributor to the sustainable management of water resources, for instance by supporting river water levels during periods of drought.
These initiatives are undertaken by EDF to benefit aquatic environments and other uses of water in the Garonne, Aude, Ardèche, Vienne, and Moselle river basins. In a basin of the Garonne river that is particularly affected by increasingly frequent episodes of drought, in July 2020 EDF entered into a new low-water compensation agreement with local water stakeholders. This agreement makes it possible to increase hydropower reservoir volumes dedicated to supporting the Garonne by 36%, through an innovative compensation scheme set up by EDF.
EDF also maintains water levels commensurate with tourism at major reservoirs, allowing the development of recreational activities and the tourist economy as part of concerted policy initiatives. Similarly, EDF ensures certain rivers have water levels that can accommodate sports and leisure activities such as canoeing and kayaking.
The Durance-Verdon and Saint-Cassien (Alpes-Maritimes) reservoirs also play a fundamental role in crop irrigation in Provence and the drinking water supply for theFrench Riviera.
Water management is carried out in consultation with the various stakeholders; in some cases, this includes agreements with local councillors, fishermen, farmers, and the managers of tourist destinations and industrial sites. EDF is thus very much a stakeholder in local water management governance. For instance, EDF has set up an innovative “Basin coordinator delegate” scheme, so that all EDF’s business lines have representation in water-related authorities such as basin committees and water agency Boards of Directors, on behalf of the UFE ( Union française de l’électricité ). This representation and coordinated action within EDF as regards water management ensures its business is sustainable and nurtures shared management of water resources.
EDF is constantly seeking to minimise the impact of its infrastructures on aquaticbiodiversity, abiding by reserved flow levels, fitting infrastructures with fishways onlisted waterways, and adapting operating procedures where fragile environments sodictate.
Through its holdings, the Group holds shares in France (notably through its subsidiary Dalkia, see section 1.4.6.1.1 “Dalkia”) and abroad in several dozen heating networks and small-scale, mainly wood-fired generating plants, and has been committed for several years now to the development of anaerobic digestion, with the biogas produced used both in cogeneration and for direct injection into the natural gas distribution network.
To develop this type of energy, EDF is using its subsidiary Électricité de Strasbourg, which operates two industrial facilities in Alsace: one for heat at Rittershoffen, Ecogi, for a local industry, and the other for power generation, at Soultz-Sous-Forêts.
Apart from hydropower, the EDF group’s involvement in renewable energy is largely conducted by its a wholly-owned subsidiary EDF Renewables. The companies in theEDF Renewables group had a workforce of 3,949 employees at 31 December 2020.
EDF Renewables has the expertise required to ensure EDF group’s expansion in renewable energy, and is fully engaged in the renewables market dynamic, with a strong presence in onshore and offshore wind power, as well as accelerating its solar power business.
EDF Renewables is also expanding into the storage sector, in line with EDF’s StoragePlan, which calls for 10GW of fresh capacity by 2035, including 4GW from large-scale batteries.
EDF is also present in the decentralised renewable energy sector (rooftop solar power) for domestic and corporate customers, with operations both in France(through its subsidiary EDF ENR) and abroad, in particular in the United States, China, and the United Kingdom.
EDF Renewables has seen marked growth in installed capacity (up 8.7%/year on average over the past five years). As of 31 December 2020, EDF Renewables had gross installed capacity of 13,788.5MW, net installed capacity of 8,662.8MW and8,061.8MW gross currently under construction. The project portfolio totalled 60.2GWat the end of 2020. The EDF group aims to achieve net installed capacity in renewables (excluding hydro power) of 21.3GW by 2024.
With operations in over 20 countries, EDF Renewables is one of the bench mark players in the development and production of electricity from renewable energy sources, in particular in its main historic locations of North America (USA, Canada, and Mexico) and Europe, mainly in France and the United Kingdom. EDF Renewables has also rebalanced its business in geographical terms, increasing its presence in other countries with high potential for the development of renewable energy, including Brazil, China, India, UAE, Saudi Arabia, Morocco, and Egypt.
EDF Renewables is an integrated operator in renewable energies and is involved in every stage of the value chain. EDF Renewables operates upstream, in project development, as well as in engineering during the construction of power plants and their operation and maintenance. EDF Renewables develops projects on its own or in partnerships, as appropriate. At the end of 2020, wind power and solar power comprised 74% and 26% of EDF Renewables holdings respectively; EDF Renewables has embarked on rebalancing its business from a technology standpoint.
As part of its business model, the Group is also involved in the Development and Sale of Structured Assets (an activity referred to as “DSSA”), which consists of selling projects it has built, in whole or in part, to third-party investors. With regard to DSSA, the net capacity sold in 2020 amounted to 1,406.3MW.
