It is becoming increasingly complex to manage and coordinate electricity networks in real time. This is linked, in particular, to the huge influx on the distribution network of electricity generated from renewable sources, which are by nature intermittent.
In this context, and in order to respond to the challenges of ecological transition, Enedis is drawing on new digital technologies that make it possible, among other things, to fit networks with hundreds and thousands of sensors. This will allow for improved management of electricity flows, but will also make the networks more resistant to climate hazards. Enedis’ goal is thus to increase its investments significantly, starting in 2022, to €3.6 billion (excluding Linky meters), and ultimately to €4 billion by 2025. Enedis plans to maintain at least this level until 2035, which represents cumulated investments of more than €60 billion. Enedis has also developed scenarios with a 2050 horizon concerning network transformation.
To date, the rollout of smart grid technologies on an industrial scale is crucial as a means of making it possible to accelerate ecological transition. The leading example is the Linky bi-directional meter. The widespread rollout phase of the Linky meters, which was launched on 1 December 2015, was completed on 31 December 2021. This rollout is a success: the final cost of the project is less than the initial budget, the deadlines were met and the metering system is performing satisfactorily. The cumulated investments (2014-2021) total €3,907 million, which correspond to 34.26 million Linky meters installed (1), 34 million of which provide access to all services. The percentage of Linky meters installed was thus 90.1%, slightly above the benchmark value defined by the CRE for the end of 2021 (90%). The equipment to household ratio of smart meters that provide access to all services is 89.4%, in excess of the incentive target set by the CRE (84.5% at the end of 2021).
The Linky project, led by Enedis, is subject to a specific regulatory framework
regarding the lifespan of the meters (20 years), with a dedicated regulated asset basis (RAB) for the meters installed between 2015 and 2021 and the associated information systems.
The CRE’s decision dated 17 July 2014 thus set a nominal return rate before tax of 7.25% for the assets and a 3% additional premium combined with an incentive regulation concerning compliance with costs, deadlines and system performance, which brings the total return on the RAB to 10.25%. The incentive regulation can also result in penalties that potentially reduce the net return, although not below a minimum amount set at 5.25%. As provided for in the decision dated 17 July 2014, the incentive regulation of the system’s performance for 2020 and 2021 was set by the CRE in a decision dated 23 January 2020.
In addition, a deferred surcharge, which is designed to ensure that Linky remains tariff-neutral for customers, means that some Enedis income for the 2014-2022 period will be shifted to the 2023-2030 period. This deferred surcharge, plus an amount to cover financing costs (set at 4.6%), will thus be collected in full by the end of 2030. At 31 December 2021, the surcharge to be collected is +€1,954 million (this represents a claim by Enedis against network users, which is not recognised on the Group’s balance sheet at 31 December 2021, pursuant to the accounting standards in force on this date).
Enedis is also determined to publicise and enhance the services that are made possible with Linky, in particular the creation of new offers by suppliers and the release onto the market by equipment manufacturers of smart devices that can interface with Linky (charging stations that start up during cheap rate periods, automatic management of charging, assistance with consumption management for vulnerable customers, etc.).
Enedis also aims to equip more than 25,000 public distribution substations with smart objects by 2025. Enedis has also developed and launched new source substations, which are a key grid component, on an industrial scale. These are source substations that can be brought online quickly, the design and factory pre- assembly of which make it possible to save one year in terms of connection time to a generator, while optimising their cost. One-quarter of the substations that will be built between now and 2035 will be based on this system.
Innovation is crucial for optimising investments and operating infrastructures with a high degree of efficiency, while taking into account eco-design as from the launch phase of projects. The digital revolution on Enedis’ grids and in its business lines is undertaken in cooperation with the entire innovation ecosystem, in the fields of both smart grids and FrenchTech. This innovation policy systematically draws on the support of research laboratories, universities, start-ups, associations and undertakings of all sizes. This approach represents job and growth opportunities for local communities and gives these achievements international visibility.
Enedis (with RTE) was thus behind the creation of Think Smartgrids, the association of the Français des Réseaux Électriques Intelligents sector that promotes the smart grid industry internationally. It currently has over a hundred members.
In a few years, Enedis has also become one of the energy sector’s leaders in the field of data. At present, around 500 types of data per year are made available to customers, local authorities and market participants. Enedis was one of the first companies in its sector to launch a Europe-wide Open Data platform. It was also the driving force behind the creation of the ORE (Energy Grid Operators) Agency (2), which brings together all the electricity and gas network operators in France. This Agency releases comprehensive data on all the operators.
Enedis’ remit to collect, protect and make data available has made it possible to develop industrial solutions for the entire French population, along the same lines as the Linky programme. The use of this data is of strategic interest to Enedis. This data also makes it possible for Enedis to improve its industrial performance and the quality of the service provided to customers. This moreover raises significant new challenges in the field of cybersecurity and requires enhanced protection of systems and data. All of Enedis’ information systems comply with the rules on individual data protection. In this regard, Enedis complies with the standards and rules laid down by the French Data Protection Agency (Commission nationale informatique et liberté, CNIL).
Enedis is a major player in the French electric system, and is convinced that there can be no industrial and economic performance without exemplary conduct from a social, societal and environmental standpoint.
Enedis has put together a company project for the years 2020-2025. It is based on a ground-breaking experiment involving dialogue with internal and external stakeholders that was launched in May 2020. Upon completion of this consultation, Enedis was able to assert its values and its informal raison d’être: “Become France’s preferred public service that supports ecological transition in local communities”.
Expectations on the subject of Corporate Social Responsibility (CSR) have very clearly emerged. Consequently, the company’s CSR policy has been made clearer and thus more visible. It sets out new principles, such as exemplary conduct in the role of employer, greater integration of stakeholders in regional governance, sharing of data from smart meters for improved proficiency in the new uses of electricity, and the development of the local communities and the contribution to their sustainable development policies.
The goals and commitments of this new CSR policy are organised around three pillars: public service that has a positive effect for the planet, for women and men, and for local communities. They are divided into 15 key actions, which are part of the efforts to achieve 10 of the UN’s 17 Sustainable Development Goals.
(1) Including experimental meters.
(2) The ORE Agency federates all the French electricity and gas distribution market participants. It provides an overview of distribution in France, using a one-stop-shop approach, and makes data available free of charge. It provides aggregated data on multiple energy types and multiple network operators in order to support energy transition in local communities throughout France, using an open data approach and in the form of data visualisations.
