THE NEW ROLE OF POWER DISTRIBUTION Michel Derdevet Technological change and energy in grid- June 21st 2016

Enedis, the main French DSO, independent subsidiary of EDF Generation Transmission Distribution Supply Clients Missions Operate and upgrade the network Remotely operate the network Connect new customers and generators Meter consumption and generation Keep available emergency response task forces 24/7 in all weather conditions Answer local authorities and stakeholders needs 2015 Key figures 1.3 million km of power lines 35 million customers 388 TWh delivered 392 000 new connections 11 million technical interventions 61 minutes SAIDI 9,3 GW of wind capacity connected 5,4 GW PV capacity connected 39 033 employees € 3,2 billion investments

Electricity distribution is at the heart of the main challenges impacting the electricity sector Energy transition and new regulations Application of energy policy on a local scale Innovative context including many new digital technologies Electricity consumption stagnation at national level with great discrepancy on local scale French residential electricity bill Renewable and social taxes Enedis operates in a regulated context, which implies financing our assignments with a very competitive tariff Network Taxes Generation and Supply

Linky : a major industrial project Smart meters are key to achieve the goals of energy transition They enable consumers to become pro’sumers Better knowledge of energy consumption and energy savings Development of demand-response Development of self-consumption They constitute the first brick towards generalized smart grids 35 million smart meters will be deployed between 2015 and 2021 for an estimated investment of 5 bn€

The Data revolution Thanks to smart meters, DSOs become data operators They will provide data to : Empower consumers Help suppliers, businesses, start-ups, etc. develop new services Help local authorities become fully actors of their local energy policy DSOs will play a key role in demand side management schemes Enedis has developed a digital agenda with several dimensions Digitalization of clients interfaces A big data initiative for a better performance such as predictive maintenance An open data website 250 billions data per year Thanks to smart meters, the number of consumption data will expand 4000-fold from current levels

The new roles of local authorities in France Energy transition consolidates the role of local authorities to develop : Renewable resources facilities Energy savings programs Low carbon mobility programs Smart grids & micro-grids experiments DSOs are natural partners of local authorities Cities own the distribution network operated by DSOs DSOs provide data to help local authorities develop their energy policies DSOs are in charge of connecting RES and charging infrastructures

Distribution networks connect 95 % of RES The French Energy Transition Law set a target of 23% renewable energy by 2020 In France, 95 % of renewable energy sources are connected to the distribution networks : they become collection networks. 15 GW of RES over 10 years, i.e. almost 10 nuclear reactors It implies : Significant investment to reinforce the grid New technological innovations Better coordination with all the players “In a rapidly changing energy landscape, electricity grids will play a key role” EU Commissioner Maros Sefcovic

The emergence of smart grids Enedis is contributing to the emergence of smart grids with 20 pilot projects in France and Europe Smart grids will enable better integration of RES thanks to local flexibilities Electric vehicles could be essential for the future of smart grids…

Several residential blocks Electric vehicles roll-out is a key challenge for distribution networks Charging points (March 2016) Over 93 000 charging points are connected to the French distribution network, for a total power of 557 MVA The French Energy Transition Law has set a target of 7 million charging points by 2030 Charging method and location will have a strong impact on the infrastructure cost Charging method Charging duration Power Equivalent power Normal 8h 3,7 to 7,4 kVA A boiler Accelerated 1h 22 kVA Residential building Fast 30 min 43 kVA A residential block Ultra fast 270 km range in 30 min 120 kVA Several residential blocks 500 - 1 000 1 000 - 2 000 2 000 - 4 000 > 4 000 By 2030, the associated impact with regards to energy will be limited… … However, it will be significant in terms of power Charging power, location and management schemes are crucial challenges for the distribution network

Enedis acts as an enabler to speed up public charging point roll-out In France, four major companies have gained national operators status 27 stations 200 stations 8 000 stations 40 stations Enedis has optimized its new connection process Enedis is developing new tools to minimize connection and grid reinforcement costs Illustration of the « ORME » tool used in Chambéry, France Estimation of the level of constraint New secondary substation needed Adaptation of a secondary substation needed Reinforcement of low voltage (LV) network Creation of a dedicated LV line Connection to an existing LV line more than 36 meters away (customized connection with an extension) Connection to an existing LV way less than 36 meters away (i.e. standard connection)

Enedis has set ambitious goal to electrify its fleet and currently tests active load management With over 1 400 electric vehicles, Enedis’ fleet ranks 2nd in France Enedis is currently testing load management schemes on a large scale, with 40 vehicle involved 08:00 12:00 16:00 20:00 00:00 04:00 08:00 Comparison of two load curves for the charging of 40 kangoo ZE (Oct. 15th 2015) Without load management With load management Enedis also plans to assess vehicle-to-grid technologies as well as distributed energy resources & electric vehicle charging synchronization, with new innovative projects

Map out European corridors for innovative mobility In order to foster electric vehicles use, well thought deployment of charging points is key : To reassure drivers regarding their mileage range Because of the impact of public charging infrastructure on the grid Creation of European corridors for innovative mobility would give a strong signal and would allow for better grid planning. Among the existing initiatives is the joint declaration between France, Spain and Portugal on November 23rd 2015 to deploy charging stations on their respective highways systems.