Électricité de France (EDF)

EDF is developing renewable energies, storage capacity and energy services at scale. The company has a target of 60 GW renewable capacity by 2030 and intends to support renewable aggregation and flexibility by tripling its storage resources by 2035. EDF also considers hydrogen as key for the low-carbon transition. It plans to invest EUR 65 million from 2021 to 2024 in hydrogen projects for the refinery, chemistry and cement industries or for mobility in collectives. It has a EUR 65 million investment plan from 2021 to 2024 for mobility and industrial projects such as refinery, chemistry, and cement.
Regarding energy services, EDF has a 2030 target of 15 million tonnes of avoided CO2 emissions for its residential customers and expects this business model to generate EUR 10 billion sales by 2030.

In 2020, EDF invested EUR 685.2 million (USD 782.6 million), equivalent to 4.2% of its total capital expenditure (CapEx), in research and development (R&D) for low-carbon technologies. This is close to the expectation that electric utility companies should be investing 5% of CapEx in low-carbon R&D to be aligned with a 1.5°C scenario. However, EDF does not disclose a breakdown of investment by low-carbon technology type and could therefore not be assessed on its investments in non-mature technologies.
’DF’s R&D projects focus on three areas: electric transition with a focus on electric mobility and innovative heat production methods; climate transition with a focus on nuclear power generation; and digital and societal transformation.

EDF has set a target to reduce its absolute scope 1 and 2 emissions by 50% by 2030 compared to 2017. It has also set an absolute scope 3 emissions target from the combustion of gas sold to end customers of 28% by 2030 compared to 2019. The Science Based Targets initiative (SBTi) has verified that these targets are consistent with a well-below 2°C pathway. However, EDF would still need to double its targeted scope 1 and 2 emissions reductions to align with its 1.5°C pathway. EDF should seek validation of its targets by the SBTi under a 1.5°C pathway and aim to be carbon neutral by 2035 as that is the expectation for electric utility companies with assets in advanced economies.

EDF significantly reduced its scope 1 and 2 emissions intensity by 42%, from 95 gCO2/kWh in 2015 to 55 gCO2/kWh in 2020. This reduction is aligned with the company’s 1.5°C pathway. However, EDF emissions intensity is projected to annually decrease by around 3% between 2021 and 2025. This reduction is not aligned with the company’s 1.5°C pathway which requires a 12% annual reduction. The company also strongly exceeds its carbon budget to 2035 by 97%. To remain within its carbon budget, EDF could accelerate the decline in electricity production from fossil fuel assets and especially coal plants.

EDF plans to achieve a 50% reduction in absolute scope 1 and 2 emissions by 2030 compared with 2017. It also has a 28% reduction target for scope 3 emissions from the combustion of gas sold to end customers by 2030 compared with 2019. It aims to be carbon neutral by 2050 for all scopes.

EDF projects to reach 60 GW of net installed capacity in renewable energy – excluding nuclear – by 2030 compared with a 33.3 GW renewable capacity in 2020. The company will also phase out coal by 2030 and work on improving the longevity of its nuclear power plants.

In 2020, EDF allocated 96% of its power generation CapEx to low-carbon sources including nuclear, accounting for a high 75% share, hydraulic, solar and wind. But only 0.05% and 0.3% were respectively allocated to coal and oil and 3% to gas. Similar shares were observed in 2019.

Between 2015 and 2020, EDF’s absolute scope 1 emissions from electricity generation decreased by 42%, due to a reduction in coal and gas power generation and an increasing share in renewable generation. EDF has reduced its emissions intensity at a rate faster than what is required by its 1.5°C pathway.

In 2020, EDF signed an import contract with the US for a 20-year period supply of 0.7 million tonnes of Liquefied Natural Gas and 1 billion cubic metres of natural gas per year. Despite a relatively low share of gas in its generation portfolio, EDF could improve its ambition by developing and switching to renewable gases.