Dalkia: working with you to step up your sustainable energy performance

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CONTENTS

Interview: Sylvie Jéhanno, Chairman and Chief Executive Officer, Dalkia Dalkia overview

Making the most of clean energy potential Harnessing recovered energy Using heating networks to provide clean heating Insight: understanding heating networks References

Committing to reducing energy consumption DESC: smart, connected facility management solutions to boost energy performance Insight: the DESC, an innovative system to reduce and improve energy use References

Shaping the future of customer relations and energy services References

10 Leveraging local renewables

24 Unlocking energy savings for our customers

Dalkia: working with you to step up your sustainable energy performance

—CreditsPhotos: Nadège Arnal, Cesbron, Benjamin Colombel, Bruno Conty, Air France Industries KLM Engineering & Maintenance, Patrick Delapierre, Gilles Delacuvellerie, Philippe Eranian, Rodolphe Escher, Jean-Yves Guillaume, Hervé Hôte, Gilles Huguet, Stéphane Lavoué, Yves Manac’h, Maria Manco, Guillaume Perrin, Philippe Quaisse, David Queyrel, Shutterstock, Alexis Tauzin, Lisa Weatherbee and Théodore Zaghian. Proofreading: Jeanne François. Design&production: Addict design.Printing: Stipa, Imprim’Vert. Printed in France on 100% recycled paper using vegetable inks and varnishes.—

Innovating every day for our customers38

Pooling our best skills to support the energy transition of local communities

What is Dalkia’s involvement in the energy transition?Fighting climate change is a global challenge to which we all must rise. For the past eighty years, Dalkia has played a prominent part in the environmental transition through its two core business lines. The first, and the oldest, is energy efficiency. We work with our customers to help them achieve sustainable reductions in energy consumption. This is part of the Dalkia promise: “Working with you to step up your sustainable energy performance.“ We manage and maintain facilities and innovate on a daily basis. We also harness renewable and recovered energy sources to help our customers overcome challenges on a local level. This is our second core business: developing

INTERVIEW INTERVIEW

Their drive to achieve a greener energy mix has given us a fillip for biomass, the circular economy, cogeneration, geothermal power and waste-to-energy solutions. Innovation is an integral part of Dalkia and its subsidiaries. It is something we develop for and with our customers.

Dalkia has a solid foothold in France. What are our international goals?As we all know, the energy transition is a global challenge. Dalkia fully intends to play its part in working towards this common goal. The international market is both an opportunity to offer our expertise to new players and a chance to build new knowledge. In Poland, for example, we utilise mine gas released by coal mines to supply our local heating networks in much the same way we recover the heat from data centres in France, and in both cases we fight against climate change by saving CO2 emissions. There is a lot to do and learn around the world, which is why we plan to accelerate our international expansion.

“Dalkia is actively involved in creating smart grids like the Lyon network.“

“We aim to increase the share of green energy in our mix to 50% by 2022.“

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renewable energy sources like biomass, geothermal and recovery of wasted heat from manufacturing processes. Green and recovered energies made up 37% of our energy mix at the end of 2017 and we aim to increase that part to 50% by 2022.

We are now experiencing a technological revolution in energy services. What part do digital solutions play in this shift?Digital technology has sparked major shifts in all aspects of society, including the energy industry. It offers outstanding scope for opportunities and innovation, and is a cornerstone of our strategy. We have already introduced initiatives like the Dalkia Energy Savings Center (DESC), which allows us to gather in real time data from the facilities we are managing. This remote management can unlock energy savings of up to 40% for our customers—and in some cases more when additional work is carried out. At the same time, we are working on other projects to connect all of our customers and give them instant access to their data.The way we see things at Dalkia, digital solutions have the power to enhance speed and comfort but can never replace that personal, human touch that is crucial to our people-centric approach as a service provider. We work daily in pooling our best skills to support the energy transition in cities and regions.

Sylvie JéhannoDalkia Chairman and CEO

‘Smart’ is a buzzword right now, but is the ‘smart city’ a realistic option? What part will Dalkia play in such projects?The smart-city concept is intrinsically tied to the role digital technology plays now in city management. Within this context, Dalkia is actively involved in creating smart grids like the Lyon network, where smart sensors transmit data in real time to ensure we supply energy at the right time and at the right price. We have also installed a heat storage system to ensure a steady supply and offset daily peaks. Renewables will provide 65% of the mix in Lyon thanks to waste-to-energy solutions and a new biomass heating plant. Smart cities are not just the future; they are already here.

Dalkia was established in 1937. How does the company keep reinventing itself?Since its establishment, Dalkia has built its business around an ability to listen to customers, talk to them and co-create tailored solutions. Working with customers on Factory 4.0 naturally spurs innovation.

Dalkia offers a range of energy solutions carefully crafted to meet the needs of individual cities and regions by controlling consumption, meeting energy performance targets, and leveraging local resources to provide renewable heating through a decentralised approach. Wholly owned by EDF since July 2014, Dalkia is a leader in energy services, instrumental in rising to the challenges of the energy transition. We offer our customers tailor-made solutions and expertise spanning the entire energy chain, from energy supply to optimisation of energy use, as well as operation and maintenance of facilities.

Dalkia works hand in hand with customers at their sites. Since 1937, we have continued to build a regional network to foster close-knit local ties. The goal is to provide expertise tailored to individual needs and ensure constructive dialogue with customers. 80% of our employees work at customer sites.

DALKIA OVERVIEW DALKIA OVERVIEW

WORKING WITH YOU TO STEP UP YOUR SUSTAINABLE ENERGY PERFORMANCE

LoCaL rootS

Dalkia builds on specialisation and innovation to develop a comprehensive array of energy services. Six specialist subsidiaries cater to the different challenges involved in providing smart building services, cooling, biogas, energy efficiency, compressed air, and waste-to-energy solutions. With the support of the EDF Group, we nurture a policy of open innovation and constantly test new technologies on the ground.

InCreaSIngLy SpeCIaLISeD bUSIneSS LIneS

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Healthcare facilities face significant challenges in ensuring the highest standards of comfort and safety while effectively controlling costs. Dalkia incorporates health, safety, and energy requirements into solutions that support the energy transition.—

HeaLtHCareLocal authorities are on the front line of the campaign to tackle global warming and address energy poverty in cities, urban communities, administrative departments and regions. Dalkia is their first port of call when it comes to energy services and renewable heating solutions.—

LoCaL aUtHorItIeSIn their drive to boost competitiveness while improving quality, manufacturers must be able to focus on their core business without distraction. Dalkia offers them bespoke solutions to curb their energy consumption and operating costs. We help them rethink processes to mitigate their overall environmental impact.—

InDUStrySocial landlords and co-ownership associations need to make technical decisions to rise to energy challenges on a daily basis. Which is the best approach? How can they reconcile cost, comfort, and environmental performance? Dalkia implements innovative, tailored solutions to address these very issues.—

reSIDentIaLDevelopers, owners, and building managers must all reconcile the need for rental income with demand for comfort and environmental performance. Dalkia helps them by providing a complete range of solutions to ensure enhanced performance in terms of energy consumption and services for occupants.—

tertIary SeCtor

ServICeS taILoreD to tHe InDIvIDUaL neeDS of oUr CUStomerS

employees15,500 €4 billion

in revenue

DaLkIa In fIgUreS (31 December 2017)

of energy savings achieved

of CO2 emissions saved

6.5 tWh 4.1 mt

Industry

Residential

Tertiary sector

Healthcare

Local authorities

revenUe

Energy services for buildings

Heating and cooling networks

Energy services for industry

Installation (design and build)

Other

by activity(%)

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by customer (%)

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More than 2 million multi-dwelling units heated

More than 2,000 industrial sites optimised

More than3,000 healthcare facilities

More than17,500 tertiary and commercial facilities managed

350 district heating and cooling networks

energy ServICeS exCL. SUbSIDIarIeS

DaLkIa’S groUp operateS In 8 CoUntrIeS

AsterIoTCesbronDalkia BiogazOptimal SolutionsTechsimTIRU

BelgiumCanadaFranceIrelandPolandUKUSARussia

6 SpeCIaLISt SUbSIDIarIeS

CompreHenSIve SoLUtIonS Subsidiaries

TIRU specialises in turning waste into energies. The subsidiary designs, builds, and operates plants that recover energy and materials from waste. Its facilities supply cities with heat and electricity, incorporating a high percentage of renewables into the mix and promoting solutions that support the circular economy.—

tIrU Waste as a resource

Dalkia Biogaz specialises in the production, treatment, and recovery of biogas. Over the past several years, the subsidiary has been developing anaerobic digestion to make full use of the resulting biogas through CHP or direct injection into the gas distribution network.—

Dalkia biogaz Biogas

Cesbron specialises in industrial and commercial cooling and HVAC engineering to ensure the right temperature at the right time with a guarantee of service continuity. With the drive to optimise energy use, reduce any impact on the environment, and provide versatile solutions, cooling is undergoing its own energy transition and environmental revolution.—

Cesbron Cooling systems

Optimal Solutions designs and builds reliable long-term energy solutions to help customers in the public and private sector reduce their energy costs and CO2 emissions and even become energy producers. Its solutions target two areas: smart, efficient buildings, and complex electrical installations. —

AsterIoT draws on data collection through IoT technology to deliver bespoke solutions for flow management and energy optimisation in multi-dwelling units and other shared buildings.—

optimal Solutions Energy savings

asterIot Energy optimisation

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France

International

DALKIA OVERVIEW

Techsim provides a comprehensive array of solutions to audit, design, install, and maintain facilities for compressed air, nitrogen, and breathable air in all sectors of industry. Compressed air provides an energy flow with significant potential to generate electricity and unlock real energy savings.—

The Imtech Group operates in the United Kingdom in the fields of mechanical and electrical engineering (Imtech Engineering Services), technical facilities management (Imtech Inviron), systems integration and digital services (Capula). The Group also provides mechanical and electrical engineering services in Ireland (Suir Engineering).—

TIRU specialises in turning waste into energies. The subsidiary designs, builds, and operates plants that recover energy and materials from waste. Its facilities supply cities with heat and electricity, incorporating a high percentage of renewables into the mix and promoting solutions that support the circular economy.—

Fenice Rus specialises in energy efficiency solutions for industry and is a pioneer in energy services in Russia.—

Groom Energy Solutions LLC provides companies and manufacturers with a complete range of consultancy, project management, and energy efficiency solutions in the United States.— Matex Controls designs, builds, and maintains

technical installations such as HVAC and fire protection for commercial buildings and industries. The company provides innovative solutions to manage the energy performance of buildings, including the Virtual Energy Management System (VEMS©) and InvisoLite online app, which analyses and controls in real time energy consumption.—

ZEC mainly specialises in producing and distributing heating in the Katowice region of Upper Silesia. The company has established expertise in producing heat and electricity from mine gas through cogeneration to supply heating networks and deliver electricity to customers in industry.—

techsimCompressed air

ImtechEngineering services

tIrU in CanadaNumber one in recycling

matex ControlsEnergy performance for buildings and industries

groom energy Solutions LLCTailored energy solutions

fenice rusEnergy for industry

ZeC Heat and electricity from mine gas recovery

DALKIA OVERVIEW

beLgIUmEDF Luminus Solutions

franCeCesbronCramDalkia BiogazOptimal SolutionsTechsimTIRU

Fenice Rus

European Union

Russia

IreLanDSuir Engineering

poLanDDK Energy PolskaMatex ControlsTIRUZEC Katowice

CanaDaTIRU Canada

USa DK Energy USGroom Energy Solutions

North America

Uk CapulaEDF Energy Services Imtech Engineering Services Imtech InvironTIRU

Different local communities have different approaches to clean energy. Dalkia uses advanced technologies in biomass, heat recovery, geothermal, biogas and waste-to-energy, to develop green solutions tailored to customer needs based on the availability of local resources. We work hand in hand with local authorities, industry, and building managers to foster strong local synergies inspired by the principles of the circular economy.

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LEVERAGINGLOCAL RENEWABLES

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37% x18The share of recovered and renewable energies in the Dalkia energy mix in 2017.

Recovered and renewable energies represent an ever-greater part of the Dalkia mix, increasing 18-fold between 2000 and 2017.

—Social housing provided by the Charente-Maritime Housing Authority in Aytré, connected to a wood-fired heating plant. —

—Biomass-based CHP at the Smurfit Kappa site in Biganos, south-western France.—

*Source: 2017 survey of heating and cooling networks, Syndicat National du Chauffage et de la Climatisation.

Geothermal energyThis type of renewable energy harnesses the heat found underground. Water is pumped from deep below the surface to warm a network and meet all or part of a community’s thermal energy needs. Dalkia operates  27  wells in France that provide heating for 100,000 homes, mainly in the Île-de-France region, where the geology is extremely conducive to such solutions, as well as in Aquitaine. This involves the use of innovative technologies. In Créteil, a south-eastern suburb of Paris, Dalkia engineers have designed bespoke, high-temperature heat pumps to boost geothermal heat production from 54,000 MWh to 81,000 MWh a year. In nearby Cachan, we are pioneering a new sub-horizontal drilling solution to upgrade the geothermal well for the district’s heating network.

Marine energyMarine energy is a new, focal point in Dalkia’s business development. It involves harnessing the energy found in seawater to heat and cool individual homes and multi-dwelling units, using state-of-the-art heat pumps to turn the temperature difference between seawater and the surrounding air into a significant source of renewable energy. Such solutions are well-suited to highly populated coastal areas. We have already begun using this technology in Monaco, Marseille, La Seyne-sur-Mer, Biarritz, Brest, and Cherbourg.

LEVERAGING LOCAL RENEWABLES

MAKING THE MOST OF CLEAN ENERGY POTENTIAL

We help companies and local authorities make the most of their local energy potential by harnessing untapped renewable and recovered energy sources. The share of recovered and renewable energy sources rose from 2% to 37% of the Dalkia mix between 2000 and 2017. Spotlight on Dalkia’s different energy services and solutions.

BiomassBiomass is a mainstay of the drive to develop renewables in France, especially for Dalkia. We are a key player in wood-based fuels and set up our own subsidiary to ensure PEFC-compliant supplies (PEFC promotes forests’ sustainable management). Biomass accounts for 21% of renewables used in French heating networks.* It gives many local authorities an opportunity to green up their energy mix. It is also used by many healthcare facilities and industrial players, which are increasingly turning to Dalkia’s biomass-based solutions. Nestlé, for instance, opted to use biomass at its Rosières-en-Santerre plant in the Somme department to produce 90% of the steam needed for the site’s operations.

boosting energy with cogeneration!Cogeneration (also known as combined heat and power—CHP) can simultaneously produce heat and power from the same facility. It harnesses the heat given off by power generation and enables energy savings of between 10% and 30%. It can supply heat to district networks and manufacturing facilities. Dalkia manages nearly 400 CHP plants and has installed one of France’s largest biomass-based cogeneration facilities at the Smurfit Kappa paper mill in Biganos, in south-western France.

• Local authoritiesDeveloping regional energy initiatives in line with specific local needs

• HealthcareConnecting healthcare facilities to heating networks and catering to energy demand

• Residential & TertiaryReconciling comfort, energy savings, and renewable energy, once and for all

• IndustryUnlocking energy potential and making manufacturers competitive and clean

Dalkia: added value for every customer

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Along with renewables, Dalkia also specialises in technologies such as incineration and anaerobic digestion, used to develop recovered energy solutions.

Recovering waste heatOne of our main priorities lies in recovering thermal energy from previously untapped sources, including manufacturing and tertiary sites. Heat from data centres, metalworks, and waste incinerators can be recovered and recycled on site (to warm buildings, etc.) or sold. The same goes for cooling.The recovered energy can be fed back into the district heating network. Dalkia has already implemented these solutions in places like Dunkirk (using heat from the ArcelorMittal steelworks), in Boulogne-sur-Mer (recovering heat from a sludge incinerator and wastewater from a treatment plant) and in Dijon (where 20% of heat comes from a household waste incinerator). Recovered energy will also provide 70%

France’s Bouches-du-Rhône department, into an energy-positive site by installing a biogas-capture system. The city of Tours is another example, where sludge from La Riche treatment plant is used to produce biogas that has been fed into the GRDF gas network since December 2016. Dalkia Biogaz provides a source of revenue for the local community through the sale of biomethane. Nothing is lost in the circular economy: the waste from the fermentation process (digestate) is used by farmers to fertilise their land.

Turning waste into a resource TIRU is a subsidiary of Dalkia. The company specialises in recovering energy from household waste in the form of electricity and steam for district heating networks and industry. TIRU built and operates a multi-stream waste-recovery hub just a few miles from Perpignan, known as the “Ecopôle“. The facility forms a seamless part of its surroundings and includes a state-of-the-art sorting centre and waste-to-energy unit. It covers the success of high-temperature

heat pumpsA heat pump draws thermal energy from the surrounding environment (water, air, or ground) then boosts the temperature prior to distribution. This simple energy transfer system can heat or cool—in the case of reversible pumps—all types of buildings and make efficient use of all types of renewable energy sources. Dalkia continues to develop increasingly effective heat pumps that can deliver temperatures of up to 120°C, and has a prototype that has already reached 140°C. Until 2008, heat pumps were only able to achieve temperatures of 70°C, whereas industry mainly requires heat sources of between 80°C and 140°C.

all aspects of household waste recycling, sorting 30,000 tonnes of recycled waste and turning 240,000 tonnes of household waste into electricity every year. TIRU also produces compost and biogas from waste in Bourg-en-Bresse. Opened in June 2016, the facility processes 66,000 tonnes of household waste and 7,500 tonnes of green waste through a combination of sorting, anaerobic digestion and composting.

Recovering mine gasIn Poland, Dalkia recovers and utilises coal mine gas released by coal mines in Katowice as part of the city’s economic transformation plan. We combine cogeneration, local energy source recovery and heating network solutions to provide cheaper district heating services, to contribute to the improvement of air quality, and to significantly lower the CO2 emissions.

120°CThe high-temperature (120°C) heat pump offers an attractive way to produce steam for industry, which is part of Dalkia’s core expertise.

HARNESSING RECOVERED ENERGY

—The Perpignan Écopôle, designed and built by TIRU: a distinctive multi-stream hub nestled among vineyards. —

of the supply for Toulouse’s new 36 km district heating network thanks to a solution that harnesses the heat generated by the supercomputers at the Clément-Ader research facility and from a local incinerator.

Benefiting from biogas Dalkia Biogaz specialises in capturing biomethane, a renewable natural gas resulting from the biological breakdown (or fermentation) of organic matter by bacteria in an oxygen-free environment, a process known as “anaerobic digestion“. Once recovered, the biogas can be used in a number of ways, such as to power a cogeneration plant. Dalkia Biogaz turned Europe’s largest landfill, in Saint-Martin-de-Crau in

LEVERAGING LOCAL RENEWABLES

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USING HEATING NETWORKS TO PROVIDE CLEAN HEATING

6%* of the French population now receives its heat from heating networks. This type of solution promotes clean, recycled energy over the use of “dirtier“ individual heating systems.

Speeding up network developmentThe Energy Transition for Green Growth Act introduced in France in 2015 aims to achieve a fivefold increase in the amount of renewable and recovered energy delivered through these networks by 2030. Major cities have already taken steps in this direction by putting their faith in Dalkia. Lyon, for example, will be home to France’s first green heating network, while Toulouse is set to unveil the largest heating network built over the past five years. Other, smaller towns are also key to the transition, like Vic-Montaner in the Hautes-Pyrénées department, which boasts the first heating network to feature 94% renewables.

Promoting green energy solutionsIt is easier for heating networks to adopt renewables because local authorities can design strategies to make use of nearby resources such as wood, groundwater, recovered heat, and waste. We work with them to fine-tune their strategies in partnership with local stakeholders in the public and private sectors. The goal is to establish loops that promote a more circular economy. According to forecasts from the French Environment and Energy Management Agency, ADEME, these energy sources could represent 50% of the mix for heating networks by 2020.

An array of advantages for usersHeating networks offer an attractive alternative to individual heating systems: simple, convenient, and safe, they avoid fuel-storage problems, excess electricity consumption, and costly boiler installation and maintenance. The result is a stable, cheap source of energy. Heating networks produce energy in large quantities, making it possible to share production facilities and unlock economies of scale. They also keep

>750heating networks in France.*

a solution for smaller communitiesHeating networks are also a viable solution for smaller communities. The latest example is the mini-network in Longuyon, in north-eastern France, which is home to around 5,500 people, where a wood-fired system heats a swimming pool, sports centre, and public building. A compact biomass heating plant built on the site of a local sports complex produces 83% of the heat needed, with the old gas-fired system used only as a back up. The system runs on 527 tonnes of wood chips a year and prevents 294 tonnes of CO2 emissions. The facility also brings economic benefits: cutting heating bills and ensuring eligibility for reduced VAT rate of 5.5%.

* Source: July 2017 survey of heating and cooling networks.

* Source: List of heating and cooling networks, Via Seva, 2016-2017.

LEVERAGING LOCAL RENEWABLES

INSIGHT

UNDERSTANDING HEATING NETWORKSA heating network is an effective, collective heating system that incorporates renewables and ensures competitive, stable prices.

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—350 heating and cooling networks operated by Dalkia in France, spanning a total of 2,200 km.—

In each building connected to the network, the heat is carried through a secondary system to radiators and taps.

the heating network forms a loop: after heating buildings, the water is cooled and sent back to the heating plant.

the heating plant can use a variety of renewable and recovered energy sources depending on available local resources, such as biomass, geothermal, marine energy, waste, and heat from manufacturing processes.

Heat is conveyed in the form of hot water (70°C to 180°C) or steam through underground pipes.

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down the cost of maintenance, which is handled by seasoned professionals. All of this makes networks an effective means of tackling energy poverty and implementing social policies to help local authorities meet their goals. Networks also improve air quality since they are equipped with emissions-control systems that are a lot more efficient than those used on individual systems.

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20,000jobs created every year through heating networks by 2020, according to the French sustainable development authority.

Supporting local jobsRenewable and recovered energy solutions generally rely on local energy sources. As a result, creating an energy mix that includes a significant share of renewables also supports the local economy. Dalkia supports this trend by offering contracts to local companies and creating long-term jobs in firms responsible for operating networks.

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Storing energy to use it more efficientlyEnergy storage is a powerful means of optimising environmental and economic performance because it can uncouple production from consumption. In Brest, renewable and recovered energy is stored in a 1,000 m3 tower dubbed the “mirrored power tower“ and fed back into the district heating network to smooth out spikes in demand. It is the first storage system of its kind in France to be installed as part of a heating network.

LEVERAGING LOCAL RENEWABLES

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REFERENCES REFERENCES

—Heating cities with computersIn Seine-et-Marne, just east of Paris, Dalkia recovers the heat given off by a bank’s data centre and supplies it to the Val d’Europe swimming pool.—

PATRICE VERGRIETE, mayor of Dunkirk and chairman of the conurbation community “For Dunkirk, innovating means supporting our industry to help it grow into the 21st century and adapting it to the energy transition to keep it competitive.“

—ArcelorMittal blast furnaces provide heat for the people of DunkirkThe heat given off by the steelworks is recovered and injected into the district heating network. The solution provides the manufacturer with an additional revenue stream and gives local residents a cheap, renewable heating supply.—

—Geothermal energy: easy on the environment... and the walletA geothermal plant provides a local source of renewable energy for 9,500 homes in Paris’ southern suburbs of Bagneux and Châtillon, 75% of which include social housing. The facility keeps costs stable over the long term and prevents 15,000 tonnes of CO2 per year, the equivalent of taking 5,000 cars off the road.—

REFERENCES—Nancy bets on biomassThe Greater Nancy area has long been reliant on coal but recently managed to make a successful transition over to heating networks. The equivalent of 28,340 housing units now benefit from clean heating at highly competitive rates, with renewable and recovered energy sources representing nearly 70% of the mix (biomass and heat from a waste-to-energy plant). The solution prevents nearly 51,600 tonnes of CO2 annually, the equivalent of taking 24,000 cars off the road.—

—Biomass boost for two Bordeaux hospitals In Bordeaux, 83% of energy demand at Charles-Perrens and Pellegrin hospitals is met by what is now the city’s largest heating plant. The solution has successfully reduced the annual energy bill for both facilities.—

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REFERENCES

—Marine energy for Euromed In Marseille, Optimal Solutions has designed and built Massileo©, a marine energy network that provides heating, cooling, and hot water, with recovered and renewable energy representing 75% of the mix. Since 2016, Massileo© has been supplying the Smartseille eco-district, which comprises 58,000 m2 of housing, offices and shops. In the future, it could serve a much wider area of up to 500,000 m2.—

Local authorities, manufacturers, the tertiary sector, healthcare facilities... each activity has its own opportunities to optimise energy use. Through smart solutions that use connected devices, cutting-edge technology, and high-end expertise, we commit to our customers through contract-based performance targets to curb consumption, reduce bills, and ease any strain on the environment.

UNLOCKING ENERGY SAVINGS FOR OUR CUSTOMERS

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UNLOCKING ENERGY SAVINGS FOR OUR CUSTOMERS2

Enhancing the energy performance of buildingsBuildings demand a lot of energy. More than three quarters of that energy is generally used for heating, cooling, lighting, and hot water. Dalkia specialists assess a building’s energy potential based on consumption calculations that consider its use, local climate, and year of construction. They help property managers identify which buildings offer the most scope for improvement

COMMITTING TO REDUCING ENERGY CONSUMPTION

Reducing energy consumption is a key priority for all operators for both environmental and economic reasons. We offer energy performance contracts to help them meet these goals, backed by bespoke technologies and expertise.

and draw up tailored action plans. Solutions include renovation and insulation, installation of sensors enabling remote management of facilities, enhanced energy management, and information on greener practices. Dalkia carries out an initial in-depth assessment then offers an energy consumption target below the benchmark figure. We ensure energy savings without detracting from comfort or performance. In 2015, for example, we signed a contract to reduce energy consumption for the town of Bourg-en-Bresse in the Ain department: this guaranteed energy savings of 14.5% in the first year.

Cesbron: improved cooling through innovationDalkia subsidiary Cesbron specialises in comprehensive energy and cooling services. In the Allier department, the company has developed a subcritical (food refrigeration <0°C) and transcritical (>0°C) system coupled with chilled water to provide an effective green solution for the Leclerc supermarket in Avermes. The energy produced by the cooling units is harnessed to heat other parts of the store.

• Local authoritiesDeveloping projects to reduce energy use in line with local challenges

• Industry Assessing sites and delivering integral process innovations

• Residential & Tertiary Conducting work efficiently without detracting from residents’ quality of life

• HealthcareImproving the energy efficiency of healthcare facilities to combine savings, safety, and comfort

Dalkia: added value for every customer

—The Cesbron head office in Saint-Sylvain-d’Anjou near Angers in the Maine-et-Loire department is housed in an energy-positive building.—

—Swimming pools use a lot of energy, which makes efficient use of water, air, and energy a key challenge.—

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From audit to actionDalkia follows a four-step approach to meet its targets: 1. site audit; 2. development of a tailored action plan; 3. optimisation of technical facilities; 4. real-time facilities management and monitoring.Dalkia subsidiary Cesbron, specialising in cooling and energy services, offers the same type of approach, which it calls Optienergie®. Solutions include audits and item-based energy tracking and performance management to unlock energy savings of up to 30%. These diagnostic phases are vital and can go hand in hand with measures to secure ISO 50001 certification, which can double the energy savings certificates obtained when work is carried out.

-50%France’s energy transition law aims to halve energy consumption by 2020.

of energy savings unlocked by Dalkia every year.

6.5tWh

—Hospices Civils de Lyon will reduce their heating bill by 30% following the installation of two cogeneration units.—

—Air France awarded Dalkia a contract covering comprehensive management of industrial facilities for Orly and Roissy airports (over 600,000 m2) to reduce consumption by 15% over five years.—

Refurbishing to reduce consumption Dalkia and subsidiary Optimal Solutions specialise in energy-based building refurbishments, mainly through Energy Performance Contracts (EPC), providing a commitment to performance targets to ensure customers have complete control over their investment. Dalkia and Optimal Solutions cover all aspects of energy refits for all types of building, including Design, Build, Operation and Maintenance (through DBOM or comprehensive performance-based public procurement contracts). We also provide funding (partnership agreements) enabling local authorities to spread their investment through fixed monthly payments for the duration of the contract.

—Campus Dalkia: a complex dedicated to innovation, interaction, and training in energy services.—

Energy savings for industryCutting energy consumption is also a focus for manufacturers seeking to gain a competitive advantage while reducing their impact on the environment. We offer solutions that form an integral part of the production process. New adjustments, new facilities, and long-term support can optimise utilities and bring sustainable benefits from recovered energy sources.

Our expertise is the key to reducing overall energy bills. Our experience and local reach ensure an unparalleled ability to provide energy management services for cities and regions, backed by the Dalkia Energy Savings Centers (DESC), first introduced in 2013 [see below].

UNLOCKING ENERGY SAVINGS FOR OUR CUSTOMERS

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The DESC revolutionWe invented the Dalkia Energy Savings Center to monitor the energy performance of our customers’ facilities from a distance. The DESC provides a central control room for sites and technicians that combines the best of human and digital intelligence. It uses specific tools to manage a massive bank of information (Big Data). It has the capacity to sort these data, structure them, and extract relevant information (Smart Data). Our specialists track anomalies and consumption spikes from buildings and manufacturing sites in real time. The DESC is France’s first-ever hub able to unlock energy savings on an industrial scale. 500,000 sensors installed in Dalkia-managed buildings measure heating and cooling systems, energy consumption, room temperature, humidity, and a raft of other operational and environmental data 24 hours a day, seven days a week.

DESC: SMART, CONNECTED FACILITY MANAGEMENT SOLUTIONS TO BOOST ENERGY PERFORMANCEThe Dalkia Energy Savings Center brings a range of benefits that include refining energy management for all types of facilities, using the latest smart technology to craft management strategies with the help of seasoned specialists, and reducing operating costs by making the best use of remote management solutions.

A digital and human networkDESC analysts work closely with maintenance technicians on the ground to fine-tune facilities remotely. These auditor-advisers assist technicians working at sites and carry out energy performance assessments. The DESC provides the key to cutting energy costs as well as call-outs, which reduces wait times for customers.

A comparative analysis of our facilitiesIn addition to the data gathered in real time, Dalkia draws on eighty years of experience and the benchmark provided by the sites we manage in France. The DESC

40%the DESC aims to increase energy savings by 40%.

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—Biomass heating plant in Hazebrouck, northern France.—

500,000connected devices send information about customer sites to the DESC.

enables a comparison between the performance of buildings in the same category based on weather conditions. This makes it possible to identify those with sub-par performance and recommend measures to ensure long-term savings and improve occupant comfort. Customers can monitor their consumption and check their performance indicators online.

—31,000 sites are connected to the seven DESCs in France, which collect 22 million data every day.—

UNLOCKING ENERGY SAVINGS FOR OUR CUSTOMERS

INSIGHT

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The Dalkia Energy Savings Center is designed to manage energy performance. It was the first system of its kind when it was launched in France, in 2013, using a combination of intelligence and interaction to guarantee energy savings.

Homes, offices and industrial sites are equipped with meters (gas, heating, and water), sensors (temperature) and automated systems. Data are collected

in real time through a digital network and sent to DESC experts, who can model the building’s energy performance and continuously track consumption.

any excess energy use will trigger corrective action. Where necessary, the DESC team will work with a technician on the ground to carry out work at the site.

THE DESC: AN INNOVATIVE SYSTEM TO REDUCE AND IMPROVE ENERGY USE

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4,3 TWh of energy savings since 2013, equivalent to one year of electricity for 900,000 households—

30,000 initiatives to improve energy performance since 2013—3

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Empowering usersSwitching off the light, turning off the computer, lowering the A/C, setting the heating... Smart home solutions can do a lot, but not everything (yet!). However, simply changing people’s habits can unlock significant energy savings. Dalkia aims to do just that with solutions like Energy Live, which provides information on energy use and the environment. Screens installed in convenient places indoors help users keep a finger on the pulse of the building. The goal is to provide occupants with information on consumption and allow building managers to promote a proactive energy coaching approach.

Haru the robot: Iot for occupantsHaru is a connected device in the shape of a friendly little robot designed for use in multi-dwelling units with central heating systems. It provides a touchpoint for building service providers and promotes information sharing between occupants.

of energy in France is used in homes.30%

Industry is France’s third-biggest energy user (372 TWh).

3 rd

—The DESC in Toulouse.—

UNLOCKING ENERGY SAVINGS FOR OUR CUSTOMERS

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—An all-in win at Groupama StadiumAll technical facilities at the Groupama Stadium in eastern Lyon are connected to a computer system that detects problems with heating, air conditioning, ventilation, electricity, etc.—

—Environmental certificates for Cœur DéfenseWith its twin towers and 182,000 m2 of office space, the Cœur Défense complex is one of the largest tertiary sector sites in Europe. Dalkia has empowered the complex to reduce its water and energy use through in-depth facility management solutions. We also helped Cœur Défense secure one of the first HQE certifications in 2009, followed by the Breeam In-Use certification in 2014.—

—Contrex® capitalises on cogenerationBy installing a cogeneration unit and overhauling its hydraulic distribution system, the Contrex® (Nestlé Waters) plant in the Vosges department has gained a significant competitive advantage and reduced its carbon footprint for the next twelve years. —

REFERENCESREFERENCES

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—Ready, Sète, Go! The town of Sète in southern France has signed a ten year energy performance contract covering 105 public buildings and three swimming pools. As part of the initiative, innovative technologies that promote the use of renewables (including seawater heat pumps and hybrid solar shades) were introduced at Raoul-Fonquerne swimming pool, reducing cold water consumption by 17% and energy consumption by 36%.—

FRANçOIS COMMEINHES, mayor of Sète “The energy transition requires us to curb our energy consumption and promote renewables. With Dalkia, we are on track to do just that.“

—An innovative storage solution to boost performanceMercy Hospital in Metz has introduced a multifaceted solution to meet energy demand. A 32 MWh ice-bank system stores energy as ice at night and makes it available by day to offset spikes in demand, enabling savings of 37%.—

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—Initiatives... and savings for 100 Paris schoolsOptimal Solutions has refurbished 100 schools in Paris under an energy performance contract, curbing energy consumption and greenhouse gas emissions by 30%.—

—Sensors and smart energy managementSocial housing provider Dynacité has connected all properties in the Ain department (447 buildings) to a remote management system using individual temperature sensors. A first for France.—

—An ingenious heat storage system in the United StatesGroom Energy Solutions has installed a cold storage system for a major food retail chain in California. The solution uses a phase-change material that can freeze and defrost on demand. The stored energy is used to smooth out spikes in electricity consumption and ensure financial savings by freezing the material when the outside temperature is lower to use less energy.—

REFERENCESREFERENCES

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INNOVATING EVERY DAY FOR OUR CUSTOMERSDalkia offers customers first-class energy solutions based on their specific needs. We draw on eighty years of ongoing innovation to harness external breakthroughs, develop new in-house technologies and foster creativity as a cornerstone of our forward-looking approach.

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INNOVATING EVERY DAY FOR OUR CUSTOMERS 3

incorporates new data-visualisation services and offers improved interaction, providing daily updates on budget management and gap analysis, concierge services for building occupants, and more.

Innovative eventsWe arrange co-creation workshops with key customers to anticipate their future needs.In February 2016, Dalkia organised the first hackathon for connected buildings. The winners formed a start-up and began testing their solutions with Dalkia customers in 2017.

>200 start-ups >2,100 involved in EDF innovation initiatives.

researchers pursuing energy innovations.

Inherent inventivenessDalkia’s innovation policy draws as much on our internal talents as our ability to foster synergy with partners. A regional network of “innovation liaisons“ identifies breakthroughs in their area and shares them with the community. This leads to real-world product tests prior to deployment, as demonstrated by the partnership with Aquaprox and Amoéba, a start-up, through which we tested a green amoeba-based solution with a customer in the Paris area. The initiative was a stepping stone to approving the use of an innovative, environmentally friendly water treatment solution in cooling towers to prevent legionella growth.

Co-creating with customersWe seek out start-ups with which we can collaborate to better meet customer needs. As part of this approach, we set up the Dalkia Innovation Factory, an organisation that allows innovative young companies to join a partnership-based high-tech, industrial, commercial ecosystem, develop their ideas more effectively and find immediate market applications. This three-pronged approach brings innovations to market more quickly. In 2016, for instance, Dalkia worked with a start-up to develop a new customer relations platform that

SHAPING THE FUTURE OF CUSTOMER RELATIONS AND ENERGY SERVICES

Optimising facilities management to develop services for occupants, leveraging the latest technologies, reducing operating costs through effective use of remote management solutions, connecting more buildings and people to DESCs, and developing technical and industrial innovations... Dalkia’s breakthroughs are manifold and manifest.

Making buildings more intelligentOne of the main innovation themes at Dalkia focuses on smart, connected buildings to strike the right balance between the needs of users, operators, technical service providers, and owners. There are many services and solutions for development and deployment to provide occupants with real-time information on their building

• Local authorities Inventing new ways to harness clean energy solutions

• Industry Innovating to save and recycle energy

• Residential & Tertiary Working together to devise a sustainable energy ecosystem for the city of tomorrow

• HealthcareDesigning innovative energy-efficiency solutions for healthcare facilities

Dalkia: added value for every customer

—In Gdynia, Poland, DK Energy Polska and Matex Controls designed and deployed InvisoLite, an online app that analyses energy use in more than 450 buildings managed by the municipality, allowing to set priorities for energy performance programmes.—

—Advisors at the Dalkia customer relations centre in Bordeaux.—

Dalkia specialises in bImBuilding Information Modelling (BIM) provides a detailed 3D digital representation of a facility’s physical and functional characteristics. Technicians will soon be able to use smartphones and tablets to conduct AR scans of ceilings to see hidden pipes.

INNOVATING EVERY DAY FOR OUR CUSTOMERS3

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and enable more effective communications with tech support. The revolution in sensors and connected devices represents a real opportunity for Dalkia. A new generation of Dalkia Energy Savings Centers, the “new DESC“, is a first step, combining artificial intelligence with predictive algorithms to ensure dynamic building management and optimise energy consumption. This allows analysts to focus on their role as energy experts: they can spend less time processing data and more time finding ways to improve the performance of customer sites.

Industrial innovations to enhance energy performanceDalkia has trialled several solutions over the past few years, including reconnaissance drones to provide thermal images of district heating networks, new heat exchangers, the next generation of high-temperature heat pumps, miniature biomass heating plants, and deployment of small-scale heating networks. We have developed all of these technologies to ensure a response to the needs of networks and buildings more quickly, detect sub-par performance, address any issues, and recover energy that was previously wasted in industry.

Focus on smart citiesThe city of tomorrow is another focal point of Dalkia’s innovation campaign. Smart cities will be connected and will need to embrace the right strategy to achieve

—In the past twenty years, microelectromechanical systems (Mems), more commonly known as sensors, have led to a plethora of connected devices. Smart buildings use these sensors and solutions to automatically adapt the building environment to the needs of occupants.—

energy self-sufficiency and offer sustainable solutions to residents. This requires cutting-edge capabilities in technological innovation to implement creative solutions such as heat storage to offset the inherently intermittent nature of renewables. However, it also means organising

Renewables are a smart solution for smart cities. With the dawn of smart grids, transmission and distribution systems can strike a balance between power generation and consumption. Local energy production and storage, led by solar photovoltaics, are therefore key challenges on which Dalkia has already set its sights. In partnership with French frozen food retailer Picard Surgelés, Cesbron has developed a new shop concept in Dourdan, just south of Paris, which reduces energy consumption through photovoltaic generation.

Self-consumption: a key challenge for the city of tomorrow

a “doubly smart“ energy solutionIn Nanterre, just outside Paris, Optimal Solutions is designing and building France’s first combined smart grid to provide both heat and power. The project is an innovative environmental initiative that draws on five local renewables to supply heating, air conditioning and hot water for 76,000 m2 of shops, homes, and offices, with renewable and recovered energy sources representing 40% of the mix. Part of the electricity used to run the network is generated by photovoltaic panels for self-consumption. Nanterre’s combined smart grid embodies an innovative green initiative that offers users an optimal level of comfort while keeping long-term costs down.

energy efficiency solutions to promote a more circular economy and rise to societal challenges through innovations designed to reduce energy poverty. The goal is to recycle energy that is not used to its full potential in industry, urban environments, and homes.

REFERENCES REFERENCES

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MICHèLE PICARD,mayor of Vénissieux “These monitoring tools will help improve quality of service and traceability.“

GRéGOIRE DE LASTEYRIE, mayor of Palaiseau “We are in the early stages of Li-Fi technology. From an economic standpoint, this is the future.“

—France’s first urban farm: growing without sun or soilCesbron was instrumental in unveiling a pilot project for automated urban farming in Lyon, based on vertical growth in an artificial climate. Dubbed FUL, the Lyon Urban Farm initiative uses 10 times less water, 10 times less space, and produces no environmental waste.—

—Ksmed®: a new view of innovation

Ksmed® smart glasses are connected to a clever software application that produces operating instructions based on

live video capture. Technicians can do their rounds and carry out maintenance work while filming. They can then work with a Ksmed® operator to break down each scene in the video, add any information needed, and categorise each

section. The software can optimise procedures and produce a comprehensive, interactive set of instructions.

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—Smart streetlightsIn Palaiseau, just south of Paris, streetlights are being used to send information wirelessly to smartphones. Optimal Solutions has installed 77 connected lights to give residents in the Camille-Claudel eco-district the benefit of Li-Fi technology.—

—Monitoring heating networks with dronesDalkia has tested and approved a new solution using drone-based aerial thermography in Mazamet, in the South of France, and Vénissieux, just outside Lyon. The light, manoeuvrable device ensures more accurate thermal readings for heating networks.—

REFERENCES

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—Innovative technology for swimming poolsDalkia scored a world first by teaming up with start-up Ethera to create NemoPool, an IoT solution able to analyse nitrogen trichloride and offer new services in energy efficiency, comfort, and health and safety for swimming pools.—

—3D modelling for Lyon heating network with ForCityDalkia has teamed up with Lyon-based start-up ForCity to develop a predictive modelling solution for the district heating network in Greater Lyon. It gives the city a digital platform that provides vital insight for decision-making on future developments.—

In 2018, DaLkIa LaUnCHeS “Women energy In tranSItIon“

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Energy is our future, don’t let it go to waste! april 2018