During EDF's Shareholders' General Meeting, held on 24th May, the Chairman and CEO, Henri Proglio, unveiled the Group's strategy up to the year 2020. EDF has thus declared its ambition of becoming the world's number one electricity player, with 200GW of installed capacity and a diversified energy mix, comprising 50% nuclear, 25% thermal and 25% hydraulic and other renewable energies. This will place EDF at the top of the renewable energies sector in Europe and make it a major global player in low carbon energy, with 75% of its fleet producing no CO2. The Group also intends to expand its international presence, increasing its generation capacity outside France by 50%.

Three strategic areas of focus will allow EDF to achieve this ambition: I. Strengthening the Group's competitive advantages

Nuclear energy, EDF's core expertise and industrial know-how Providing competitively priced and carbon-free electricity, nuclear generation has a rightful place in the world's energy mix. Safe nuclear generation is perfectly possible provided that it is based on transparency, on a culture of continuous improvement and on responsible operators who - like EDF - combine the three areas of competence: operation, construction and design. Thanks to the continuous improvement in its nuclear fleet, EDF has become the global benchmark, capable of placing its skills and expertise at the disposal of operators or countries wishing to produce and develop safer nuclear energy.

France: basis of the Group's industrial legitimacy on a global level EDF will continue with the initiatives undertaken in 2010. The Group had indeed set itself three priorities in the domestic market:

Operational performance in the generation fleet and grids and to support its customers. Strengthening industrial installations through investments. Upgrading skills through its ability to develop Group employees' professional skill sets, enhance mobility and attract talent.

The United Kingdom: firmly strengthening positions EDF's goal is to establish its foothold in the United Kingdom, which is entering a significant phase in the reconstruction of its generation fleet. In particular, the Group will carry out nuclear development projects, underpinned by political decisions in support of low carbon energies with the recent publication of a draft law establishing a price floor on CO2 emissions.

II. Responding to our customers' diverse needs throughout the world over

EDF wishes to strengthen and enhance its diversity of skills, a major advantage for the Group in responding to the variety of demands made by its customers. In the field of generation, the Group is to deploy its skills in areas other than nuclear, such as large-scale hydroelectric projects. As regards other renewable energies, EDF intends to move from a project model to an industrial model. The EDF Energies Nouvelles tender offer set to be launched in the next few days is in perfect tune with this goal.

As regards fossil fuel fired energy, EDF intends to deploy its mastery of the most modern, environmentally clean technologies, as well as its expertise in terms of project management.

The Group also wishes to bring its experience as regards the planning, design or operation of grids to those countries wishing to expand or modernise their infrastructures and to develop smarter grids. The partnerships forged between ERDF and the operators of the Chinese and Russian grids are the first examples of this.

Lastly, EDF considers gas to be an essential component of its electricity generation activity, particularly its role in supplying the Group's combined cycle gas turbine or in extending the offering to end customers. The investment in the Dunkirk methane terminal, which was approved by the Board on 24th May, and also the South Stream project, are central to this drive.

At international level, in parallel with its strong European foothold and the expansion of its presence in China, Russia and the United States, EDF's aim is to increase its presence in rapidly growing markets such as Poland, Brazil and Turkey. EDF wishes to offer sustainable industrial solutions through a range of contractual formats: assisting project owners, management on behalf of third parties or IPP (Independent Power Producer) type investments. EDF will also rely on skills acquired from the downstream sector (optimisation, trading, commercial offers to customers), in order to further its international development.

III. Controlling our destiny by combining EDF’s unique expertise with anticipating needs for 2035 - 2050

EDF wishes to increase its efforts in innovation and R&D, to prepare for a future in which the world faces major challenges connected with climate change, security of supply and a relentless increase in worldwide demand for electricity, set to double between now and 2050. To this end, 2,000 engineers and technicians are mobilised to develop the Group’s capacity and to forward plan in every area of activity: generation, grids and demand.

The Group will place particular emphasis on carbon-free generation, on the ageing of materials, a key area for the lifespan of power plants, and on the capture and storage of CO2, a major challenge for coal generation throughout the world. Technologies like new-generation photovoltaics, off-shore wind energy, concentrated solar power or underwater turbine generation also present significant potential for the future.

On the cusp of profound changes, EDF will also focus its R&D efforts on customers and grids, on the development of smart electricity systems, a key element of which is the Linky communications meter, which has been trialled with success by ERDF. The research conducted by EDF will also focus on developing energy-efficient buildings at an affordable price, smart buildings and innovative electricity choices for transport, heating comfort, or industry.

The Group’s ability to take control of its destiny also rides on the quality and motivation of its teams, their skill set, their loyalty to the company and their public service ethos. The Group intends to continue its drive to retain such formidable human resources at a time when 40% of staff is due to retire over the next 5 to 10 years.

Tags: EDF Group