Universal Registration Document 2021

France in the lead as a result of Enedis’ smart grid

The French public electricity distribution service scored highest in the 2021 edition of the SGI ⁽¹⁾. It received the highest score for the smartness of its grid out of all the countries measured ⁽²⁾. Based on several criteria, Enedis’ overall score was 96.4% (of 100%). Enedis is maintaining its industrial, technical and technological momentum with a view to making the public distribution network in France a global benchmark for years to come.

Action to mitigate climate change

Enedis aspires to contribute to achieving “carbon neutrality” by 2050 by drastically reducing its own greenhouse gas emissions. Above and beyond this, it wishes to undertake an ambitious initiative with its suppliers in the spirit of the French Supplier Relations and Sustainable Procurement label (Relations Fournisseurs Achats Responsables, RFAR). Residual emissions will be offset by the financing of certified and auditable projects, through, for example, reforestation operations, most of which are planned after 2030.

Enedis also intends to contribute to achieving COP21 targets by accelerating the large-scale rollout of low-carbon electricity solutions and the controlled consumption of electricity by means of smart meters and smart grids.

Enedis will help to achieve carbon neutrality by 2050 by drastically reducing the 1.2Mt CO₂eq of its own emissions (Scopes 1 and 2) and by driving an ambitious procedure with its suppliers and providers to reduce the figure of 2.4Mt CO₂eq (Scope 3) to the greatest extent possible.

To achieve an initial target of a 20% reduction by 2025 compared to 2017 (the year of the last overall CO₂ balance), Enedis plans the following:

• ongoing electrification of its vehicle fleet, aiming for 100% of its light commercial vehicles to be electric by 2030, and 100% of its construction vehicles to be electric by 2050 at the latest (at the end of 2021, the company’s fleet comprised 3,647 electric vehicles, e. 20.5%);
• progressive replacement of its backup generators with low-CO₂-emission mobile solutions (batteries, fuel cells);
• reduction of its SF₆ emissions through optimised maintenance of source substations and a change of technology to new HV cells (already implemented by some of its suppliers);
• reduction of its emissions arising from loss purchases by means of a lower electricity emission factor, as renewable energy production replaces some high- carbon power generation;
• reduction of the energy consumption of its service sector sites, including those relating to information technology, at the reduction rate specified in the “service sector decree” (décret tertiaire) (40% less in 2030 compared to 2010);
• optimisation of personal and professional travel through the development of teleworking, reducing the number of call-outs to customers by means of the Linky meter, and reducing the number of face-to-face meetings, which are increasingly being replaced by videoconferences;
• making its suppliers and providers commit to moving towards carbon neutrality by leveraging commitment charters, environmental criteria, eco-design of equipment, and the use of recycled materials. To this end, in 2021 Enedis proposed a day of “raising awareness of decarbonised purchases” involving all Enedis’

Enedis will be a key player in the implementation of France’s National Low Carbon Strategy, by favouring innovative electricity solutions, replacing fossil energy, and deploying smart management of the electricity system to manage consumption.

Enedis is also mobilised in several other ways:

• facilitating the integration of new electricity solutions in the distribution network: renewable energy (67GW of renewable energy by 2035), electric charging stations (12 million connected to the network by 2035), self- consumption, and storage;
• developing the use of electricity and of more efficient processes, such as heat pumps;
• controlling consumption by means of smart electricity grids and smart meters;
• ensuring smart management of the electricity system at controlled cost, by developing new forms of flexibility.

To validate its low-carbon strategy, Enedis will contribute to the greenhouse gas reduction commitments made by the EDF group with a view to obtaining Science Based Targets (SBTi) certification, an initiative led by the EDF group.

In addition to its pro-climate actions, Enedis is working to preserve biodiversity. For example, it has initiated actions to protect birds from the risk of electrocution through its partnership with the French Bird Conservancy Society (Ligue de protection des oiseaux, LPO) that was renewed in 2021. It supports other initiatives through the Entreprises engagées pour la nature programme, which is run by businesses that are committed to nature conservation.

Moreover, Enedis has undertaken a vast operation to raise the awareness of its employees to climate change through increased use of the “Climate Collage” (see section 3.1.3.5.2 “Innovation and collective intelligence focused on climate action”

– the “Climate Collage”). At the end of 2021, the awareness of almost 5,000 employees had been raised through workshops on the causes and consequences of climate change.

Moreover, the Enedis plan for adaptation to climate change is currently being finalised. It has been produced in accordance with the principles of the TCFD (Task Force on Climate-related Financial Disclosures) and takes into account both the physical and transition risks.

1.4.4.3 Island Energy Systems

Island Energy Systems (IES) brings together the electricity systems operated by EDF that are not connected to the mainland metropolitan network. These provide power to Corsica, the overseas départements (except Mayotte) and the overseas territories of Saint-Barthélemy, Saint-Martin and Saint-Pierre and-Miquelon, as well as several of the Ponant Islands (Sein, Ushant, Molène and Chausey).

EDF’s organisation in these regions is based on two structures:

• the Island Energy Systems (IES) Department, which is responsible for the supply and demand balance on a daily It manages all the networks and carries on a sales and marketing activity with regulated sales tariffs, guided by an active energy efficiency policy;
• the subsidiary EDF Production Électrique Insulaire (EDF PEI), which is responsible for building and operating new means of

The additional generation costs in these territories compared to the equivalent costs on the mainland are regarded by the legislature as a public service cost and, as such, are offset by the State budget.

The costs incurred by the network operator are, in contrast, covered by the Tariffs for Using the Public Electricity transmission and distribution Networks (TURPE) paid by network users and by the Electricity Equalisation Fund (fonds de péréquation de l’électricité, FPE).

(1) 2021 edition of the Singapore Power Group Smart Grid Index. The Smart Grid Index measures the smartness of power grids globally by comparing more than 80 utilities across 37 countries, in seven key dimensions, such as green energy, data analytics, DER integration, digitalisation, cyber security, customer satisfaction, etc. The comparative analysis also identifies the best practices to build smarter grids that deliver better value to customers.

(2) Distribution Network Operator.