In parallel, Enedis has planned modernisation programmes that cover all at-risk structures, with targeted renewal according to the likelihood of failure. The programmes that have already started will be pursued, in order to continue the improvement of quality of supply, in an environment that has seen an increase in risks (fires, heatwaves, floods, gales and storms). They aim to:
The growth of electric mobility is the key contributing factor to the increase in France’s electricity consumption over the period leading up to 2050. According to Enedis’ projections, which are aligned with the National Low Carbon Strategy scenarios (SNBC), 17 million plug-in electric vehicles will be on the road in France in 2035, i.e., 40% of the total number of light passenger and light commercial vehicles at that time.
The volume of business associated with the connection of the new charging stations that are needed for these vehicles (in multi-family housing, in particular, on public streets, on mall parking lots, in company car parks and on major roads and highways, for example), and also the adaptation of distribution networks to the growth of this new form of use, represent a genuine challenge for Enedis.
In this regard, Enedis has run numerous studies and experiments on the structuring questions raised by electric mobility: coordination of charging, use of vehicle batteries to provide services to the electricity system, synchronisation of charging and renewable energy production, use of data from vehicles, charging stations and meters, etc. The aim is to anticipate the impacts on the electricity system and on the distributor’s activities.
The massive arrival on the distribution network of scattered, intermittent generation sources, and the sharp growth of electric mobility, require control and management of flows that is increasingly granular and complex.
Under these circumstances, and to address the challenges of ecological transition, Enedis is relying on digital technologies and scaling up smart grids. This involves using networks with hundreds of thousands of sensors, continuing the digitalisation of previous-generation smart systems, and scaling up forecasting models for the running, as well as improving the oversight and robustness (including of the cybersecurity) of infrastructures and information systems.
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).
The replacement of previous generation meters with Linky meters continued in 2022, driven by customer requests and maintenance. With around 1.1 million new replacement meters and around 0.4 million new delivery points commissioned, the fleet is now equipped with around 35.7 million Linky meters, which represents an equipment to household ratio of 92.1%. The expected trajectory, which conforms to the CRE’s recommendations, should result in an equipment to household ratio of 97.5% by the end of 2025.
Regulatory notice
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%. 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. After the massive rollout phase ended in December 2021, in its decision of 17 March 2022, the CRE defined the financial incentive indicators, as part of the monitoring of the performance of the Linky advanced metering system for the period 2022-2024. In addition, a deferred surcharge, which is designed to ensure that Linky remains tariff- neutral for customers, means that some 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 2022, the surcharge to be collected is +€2,051 million (this represents a claim by Enedis against network users, which is not recognised on the Group’s balance sheet at 31 December 2022, 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. These include, 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 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 French smart grid industry association that promotes the sector internationally. It currently has over a hundred members.
The French public electricity distribution service was named the smartest Distribution Network Operator in the world for the second consecutive year, and was ranked first by the Smart Grid Index (SGI) (2). Based on several criteria, Enedis’ overall score in 2022 was 98.2% (out of 100%), an improvement of its 2021 score by 1.8 points. 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.
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
(1) Including experimental meters.
(2) The Singapore Power Group Smart Grid Index measures the smartness of power grids globally by comparing operators 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. In 2022, 94 operators from 39 countries were compared.
