The EDF group’s activities in Asia Pacific are focused on the development of the electricity sector, particularly through projects for the design, construction and operation of new thermal gas and hydraulic generation plants in countries offering Independent Power Plant (IPP) type opportunities. EDF is also involved in the field of renewable energies, nuclear, storage, smart cities, grids, electric mobility, hydrogen and innovation.
Headquartered in Tokyo, the EDF International Division Asia (“EDF Asia”) relies on two subsidiaries in Laos (one 1070MW hydropower asset, jointly owned and operated with Lao and Thai partners) and Vietnam (one 715MW combined cycle power plant, jointly owned with Japanese partners), and several development offices in India, Singapore, Vietnam, Indonesia and in Japan.
At 31 December 2022, EDF owned 56.25% of Mekong Energy Company Ltd. (MECO), the company owning Phu My 2.2, a combined cycle gas power plant with a capacity of 715MW (1). This is the first IPP project financed exclusively by foreign investors in Vietnam. The BOT (Build, Operate, Transfer) contract has a term of 20 years (the transfer will be done in February 2025). In 2005, EDF provided “turnkey” delivery of the power plant, and operations are now managed by MECO.
Once built, the high-efficiency and environmentally-optimised CCGT Son My1 plant with a capacity of 2,250MW in Binh Thuan province, situated north-east of Ho Chi Minh City will be operated by EDF for a period of 20 years.
The EDF group was chosen to head the consortium (2) tasked with studying the project. A memorandum of understanding setting out the general terms of the project was signed with Vietnam’s Ministry of Industry and Trade (MOIT) in November 2018 and amended in December 2020. On 27 October 2021, the project was granted an “in-principle investment decision” from the Ministry of Industry and Trade. The working schedule for 2022/ 2023 will consist in obtaining final approval for this feasibility study from the MOIT and moving forward in the negotiation of a concession, PPA and other contractual documents required for commissioning of the first unit by the end of 2026.
At 31 December 2022, EDF Invest holds a 40% stake in Nam Theun 2 Power Company (NTPC), which owns the hydropower complex Nam Theun 2 with an installed capacity of 1,070MW. Nam Theun 2 was built by the EDF group under a “turnkey” contract and commissioned in 2010 (3). NTPC company operates the power plant on a 25-year concession agreement concluded with the government of Laos.
In 2022, Nam Theun 2 faced the driest year ever from the beginning of the operations with only 37% of reservoir filling. A particular mechanism has been triggered in the PPA to mitigate the financial impact of this hydrology. The business of the powerplant oriented to the shutdown and the maintenance period starting from mid of November 2022 till mid-March 2023. It is the longest and biggest shutdown for Nam Theun 2 to complete the major overhaul of 2 turbines, to maintain and repair the main civil structures in the Downstream Channel and to inspect the conditions of every facilities after 12 year of operation.
A project to develop a floating solar wind farm with capacity of 80MWp on the Nam Theun 2 hydroelectric dam reservoir was launched in 2019. The project was formalized by the signature of a Memorandum of Understanding (MoU) with the Lao government in July 2019 and then with EDF partners in June 2020. During the year 2021, important steps were taken, including the signing of a Project Development Agreement (PDA) with the Lao government and an MoU with partners, to optimize and develop production by NTPC. The benefits of this hybridization between two power sources are manifold. In particular, it allows a better production capacity in the dry season, thanks to an optimize water storage in the reservoir, and the development of a low-carbon energy without major environmental or social impact.
In the field of nuclear energy, for details of the cooperation agreement for the project to construct six EPR reactors in Jaitapur, see section 1.4.1.1.3.2 “Other New Nuclear projects”.
EDF continues to develop the smart metering business by achieving new milestones in the on-going Smart Metering project and participating in new smart metering tenders being launched across India. The on-going Smart Metering project in India with the objective to deploy nearly 5 million Smart Meters has become a National Benchmark and is currently the largest smart meter deployment project of India with smart pre-paid metering. As of November 2022, more than 1 million Smart Meters have been successfully installed in smart pre-paid mode.
Other areas of focus for EDF in India is to develop conventional hydro projects and Pumped Storage Hydro projects and in particular pumped hydro projects which will be a cornerstone of India path towards the low CO2 energy transition.
EDF Renewables continued growing its solar and wind power businesses in India.
Following the coup d’État on 1 February 2021, EDF announced the suspension of the Shweli 3 project in Burma, a 671MW hydroelectric dam development project on the Shweli River in northeast Burma (Shan State). Respect for fundamental human rights is a prerequisite for every project in which EDF is involved. Therefore, since the coup d'Etat, the Shweli 3 consortium has decided to suspend the development of the project, including the activities of its subcontractors.
In addition, EDF has also decided to suspend its development of hybrid microgrids (solar and battery) in several remote villages in Burma.
Since 2017, the EDF group has been continuing its development strategy in Indonesia, focusing on renewable energy projects, with in particular the development of hydropower or smart-Metering projects.
EDF opened his 6th International R&D center in 2014, EDF Lab Singapore Pte. Ltd (the “Lab”) to support the Singapore Housing Development Board (HDB, the city’s largest construction firm) with a bespoke Urban planning tool for smart cities. The Lab is currently focusing on 3 core topics:
As part of the strong links with academics, the Lab is involved in two “Digital Energy” research projects, partially funded by the Singaporean authorities:
On top of the Lab, the subsidiary in Singapore (“EDF HQ Singapore Pte. Ltd.”) was established in 2018, and embed itself in the development and innovation ecosystem of smart grids, electric mobility, smart cities and interconnections. EDF HQ Singapore Pte. Ltd and Tuas Power were awarded by government agency in charge of Singapore’s industrial progress (JTC) and the regulator Energy Market Authority (EMA) for the so-called “Smart H2 project”. This project and its feasibility study, subsidized by Singapore government, consist in a renewable energy system that thanks to a virtual power plant will produce green hydrogen in an electrolyzer and then sell it to an industrial customer. The project would include a 1MWe electrolyzer and will use an Energy Management System and green certificates.
(1) The other shareholders are TEPCO (JERA) and SGM2 (Sumitomo).
(2) Alongside local partner Pacific Corporation and Japanese partners Sojitz Corporation and Kyushu Electric Power Co. with stakes of 37.5%, 25%, 18.75% and 18.75% respectively.
(3) The other shareholders are a Thai company, EGCO (Electricity Generating Public Company Limited), which holds 35%, and a Lao State company, LHSE (Lao Holding State Enterprise), which holds 25%.
