EDF Energies Nouvelles Annual Report 2009

2009 ACTIVITY REPORT

EDF ENERGIES NOUVELLES

2200009 KEYY FFFIGURES

33,8805 MW in ggrosss capacity22,77224 MW in nnet ccapacityinn sseervice or undeer coonstruction

44.66 TWhinn ggrreen energy ggenneerated in 20009

114,5573 MWinn wwind energy projjecttsuunddeer developmentt

22,99110 MWpinn ssoolar energy projjeccttsuunddeer developmentt

€€ 1.117 billioninn reevvenues

€€ 3334 millioninn EEBBITDA

2,44339 employeeeswworrlddwide

Renewable energies specialist EDF Energies Nouvelles is a leading force

in green electricity generation. Present in ten European and three

North American countries, the Group operates in a buoyant market

with an international footprint spanning various segments.

Wind and solar energy are its two principal engines of growth.

The Group is also active in other segments, including distributed energies,

biomass, biofuels, biogas, small hydro and marine energies.

The Group possesses expertise covering every phase of a project’s life.

The development, construction, operations and maintenance activities

for green electricity generation plants are carried out for the Group’s

own account and also for third parties.

EDF Energies Nouvelles is a 50 % owned subsidiary of the EDF group.

A GREEN ENERGY LEADER

DELIVERING STRONG PERFORMANCE

PPRRRROOOOFFILLE

000000011112009 ACTIV IT Y REPORT

02 Message of the Chairman of the Board of Directors04 Interview with the Chief Executive Offi cer06 Brisk expansion08 Principles of governance10 Stock market recovery

12 STRATEGY

SUSTAINABLE GROWTH14 Renewable energy: an essential20 Robust strategic choices

24 ACTIVITY

VIGOROUS GROWTH26 Pace maintained in wind energy30 Solar momentum confi rmed34 Distributed energies promising results 36 Other maturing segments with future promise

38 RESPONSIBILLITTY

VIRTUOUS GROWTH40 Job creation42 Revitalisation of the local industrial fabric 44 Quality of installations 46 Supporting expansion

47 CCONDENSED COOONSOLIDATED FINNANCIAL STATTEMMENTS

CCCONTTEEENTSS

2009 ACTIV IT Y REPORT EDF ENERGIES NOUVELLES

EDF Energies Nouvelles continued to record strong and sustain-able growth in 2009. The Group kept up a brisk pace of invest-ment and delivered a remarkable increase in its earnings. Over the past ten years, our business has achieved a growth rate of 30 % to 50 %, supported by a signifi cant increase in our work-force. We have grown from some 50 employees to a headcount of close to 2,500 around the world today. This dynamism demonstrates the pertinence of our business model and proves that it is predicated on deep-rooted changes. Depleting fossil fuel reserves and growing demand for energy are shaping the fundamental trends. The risk of an energy shortfall is coupled with the threat of global warming. Renewable energies, which have a role to play in facing up to these challenges, are set to continue gaining ground.

ACHIEVING COST COMPETITIVENESS

Green electricity currently costs more than grey electricity1. Gradually, however, it should become more competitive with market prices, with wind energy leading the way in the short term, followed by solar in the medium term. Wind energy is already competitive in certain parts of the United States and Mexico. The scales are also likely to shift in favour of other green energy segments. Although we are consuming more and more energy globally, fossil fuel resources are fi nite, and this is likely to drive up energy costs. Conversely, the cost of renewable technologies is expected to decrease. This downtrend will be driven by the impact of technical progress and large-scale industrialisation of green technologies.

BUILDING NEW INDUSTRIAL SEGMENTS

Not to invest in wind energy today would be to risk missing out in the future on a mature technology that is almost cost-competitive today and will become increasingly competitive going forward. And as many governments have grasped, industries naturally tend to set up where their markets are located. By rolling out support for renewable energy segments,

political decision-makers aim to nurture new equipment-manufacturing industries in their countries, thereby harnessing the potential benefi ts in terms of jobs and growth. Countries that can nurture these sectors of industry will be the winners of the future. The decision to pursue expansion in the solar photovoltaic segment has proved extremely benefi cial from this standpoint. Our Group now ranks among the leaders, having rolled out operations simultaneously in fi ve countries over the past two years. And a whole new sector of industry is taking shape around a completely new generation of technologies.

EMBRACING THE TECHNOLOGIES OF THE FUTURE

Numerous technological breakthroughs are expected to emerge over the next decade enhancing the yield of photo-voltaic modules and cutting costs. The challenge is to make sure that R&D delivers genuine innovations and then to indus-trialise them. Upstream of its core business as a generator of renewable electricity, the Group is an active participant in a number of projects. It has provided support to several technologies used to produce thin-fi lm modules. Alongside the world leader in solar panels First Solar, it is jointly fi nancing a manufacturing plant in France set to create 400 new jobs. It has contributed to the industrialisation of innovative new technologies and helped to fi nance several pilot projects. It also participates in research and development programmes.With 5 % of global electricity capacity already, green energies are set to generate a growing proportion of energy over the next few years. EDF Energies Nouvelles is currently positioning itself to play a major role in this market, while accelerating the development of the industries of the future.

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MESSAGE FROM PÂRIS MOURATOGLOU

CHAIRMAN OF THE BOARD OF DIRECTORS

1- Grey electricity refers to electricity produced from fossil fuels.

MMEEESSAGE OOF TTHE CHAIRRMMMAN OF THEE BBOARD OOF DDIRECTORS

02

« COUNTRIES THAT CAN BUILD UP SPECIALISED INDUSTRIES WILL EMERGE AS THE WINNERS OF THE FUTURE »

2009 ACTIV IT Y REPORT EDF ENERGIES NOUVELLES 00000005555

Following on from the semi-failure of the Copenhagen Summit, do you believe that governments have the resolve to go ahead with their renewable energy projects?I have no doubts about governments’ resolve to support the development of new energy sources because they need to meet three challenges : fi nd solutions to address growing energy demand, global warming and the creation of a clean tech segment. Governments are keenly aware that the development of a green economy is one of the keys to success in the 21st century. There will be winners and losers, both among industrial companies and among nations. And the cards are being dealt out now.

What are your main objectives for 2010?We expect to maintain our pace of growth in wind energy and to continue accelerating our expansion in solar photovoltaic. In terms of our fi nancial performance, we expect to record EBITDA of between €430 million and €450 million 1, and we project capital expenditures of around €1 billion.

1- The assumptions underpinning this objective are presented in Chapter 13

of the Group’s Registration Document.

« THE CARDS FOR THE GREEN ECONOMY ARE BEING DEALT OUT NOW »

INNTTERVIEWW WWWITH THE CCHHIEF EXECCUUTIVE OFFFIICCER

INTERVIEW WITHDAVID CORCHIA

CHIEF EXECUTIVE OFFICER

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How would you describe EDF Energies Nouvelles’ performance during 2009?2009 was an excellent year for our Group, especially considering the economic climate. From a fi nancial standpoint, our results were ahead of our objectives, which represented a genuine source of satisfaction. EBITDA, which remains the most relevant indicator, came to €334 million, ahead of the €280 million to €300 million range issued at the beginning of the year. At the same time, we fl irted with the symbolic barrier of €100 million in net income. This increase in our fi nancial performance refl ected the strong and profi table growth across all our businesses.

What were the highlights across your various business segments?First of all, wind energy continued to live up to its promise. With development balanced between the US and Europe, this business remains our main engine of growth. During 2009, we added over 500 MW in net installed capacity to our asset base, in line with our medium-term objectives. In the solar photovoltaic segment, we roundly beat our objectives for the year, with 220 MWp in gross capacity installed or under construction, compared with the target range of 100 to 150 MWp. I would like to pay tribute to the hard work put in by our teams around the world, as they have already seen several landmark projects through to completion. Another highlight of the past year was the agreement signed with First Solar to build the largest manufacturing plant for photovoltaic panels in France. This transaction has secured our purchases on competitive terms in a fast-expanding market, while fostering the creation of a new industrial segment. Lastly, the take-off in distributed energies has been a success. We originally drew up plans for this business in 2006 and launched it in 2008, and it started contributing to our results from 2009.

Did the crisis impact your business?We kept our fi nancial strength intact, harnessing the benefi ts of a profitable and low-risk investment policy. Indeed, the challenging conditions provided a stern test of the effectiveness of our business strategy. For us, the top priority was to seize the opportunities that arose. We did so by purchasing wind turbines in the US secondary market. Likewise, the partnership formed with Greentech helped to accelerate our development in Italy and to establish a potential foothold in the Polish market.

Is the Group capable of maintaining the same pace of development over the next few years?Our current and future growth has been built on the painstaking efforts launched in 2000 that have always focused on long-term wealth creation. It is worth reiterating that our pipeline in the wind segment currently stands at over 14,000 MW. In the solar segment, it already stands at close to 3,000 MWp and is rising rapidly. Our future expansion will fl ow from this pipeline. What are the challenges you face as you seek to harness this tremendous potential? First of all, we need to be able to rely on high-quality human resources right around the globe and across all of our business segments. This is the fundamental aim of the recruitment policy we have pursued. This includes strengthening our management teams at every level. The second priority derives from our ability to invest in new projects. And we have equipped ourselves to realise our ambitions. First, in 2008, we carried out a capital increase giving us the equity capital we need to execute our solar projects. Secondly, we implemented innovative fi nancing solutions wherever necessary. The recent agreement sealed with the EIB and a pool of commercial banks to secure a €1 billion fi nancing package for a set of solar projects in France and Italy represents a perfect demonstration of this.


CHANGE IN THE METHOD OF CONSOLIDATION AND ADJUSTMENT OF OPERATIONAL TARGETS

To better refl ect the economic reality of certain power plants in the United States in the consolidated fi nancial statements, these are now fully consolidated. This change in accounting method was adopted with retroactive effect from 1 January 2008. Accordingly, the Group’s 2012 operational objective was adjusted from 4,000 MW in net capacity to 4,200 MW, including 500 MWp net in solar capacity.

33.0 %

2.0 %

48.9 %

16.1 %

Gross installed capacity by regionat year-end 2009

■ France

■ Europe (without France)

■ United States

■ America (without United States)

Trends in installed capacityin MW

■ Net capacity

■ Gross capacity

2007 2008* 2009

2,945

2,2572,275

1,6791,443

1,035

Gross installed capacity by segmentat year-end 2009

90.0 %

0.9 %

2..7 %%%

1.9 %

4.4 %0.1 %

■ Wind

■ Solar

■ Biomass

■ Biogas

■ Hydro

■ Cogeneration/Thermal

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GROWTH OF 39 %

Net income, which came close to €100 million, was almost double its level two years earlier.This strong profi table growth was underpinned by strict investment criteria.

+ 39 %

2007 2008* 2009

97.9

70.6

51.4

Net Income - Group Sharein millions of euros

INCREASE OF 23 %

This increase refl ected the ramp-up in solar energy, which accounted for slightly over one-quarter of capital expenditures during 2009.

+ 23 %

2007 2008* 2009

1,319

1,070

523

Capital expenditure in millions of euros

FINANCIAL STRENGTH

Net debt included €932 million in power plants under construction that are not yet generating any revenues, but will help to drive future growth, as well as a working capital requirement of €650 million directly attributable to asset sales.

The Group’s balance sheet structure is robust with the systematic use of no-recourse (or limited recourse) project fi nancing for operating assets, to achieve a perfect match between recurring revenue streams and long-term debt repayments.

** including minority interest

■ Net debt

■ Shareholders’ equity**

2007 2008* 2009

2,738

1,573

1,314

1,474646

757

Debt and shareholders’ equityin millions of euros

KKKKEY FFFIGUURRES

During 2009, the Group recorded a new and powerful earnings uplift. Amid challenging conditions, it maintained a brisk pace of development. Operating and fi nancial performance recorded very strong growth, which exceeded our forecasts.

INCREASE OF 16 % IN REVENUES RISE OF 47 % IN EBITDA

BRISKEXPANSION

* The 2008 fi gures were restated to take into account the change in the method of consolidation

used for certain US wind farms.

63 %

■ Europe

■ Americas

37 %

Geographical breakdown of 2009 revenues

+ 47 %

2007 2008* 2009

334.2

226.8

134.3

EBITDAin millions of euros

+ 16 %

+ 52 %

2007 2008* 2009

■ EDF Énergies Réparties (EDF ENR)

■ Development and Sale of Structured Assets (DSSA)

■ Production and O&M Services

1,173

1,015

561

Consolidated revenues by segmentin millions of euros

Increase of 53 % in Electricity generation revenues thanks to the additional wind and solar capacity commissioned.

Another increase of 43 % in Operations & Maintenance revenues, after a rise of over 100 % in 2008.

Growth of 51 % in Distributed energies (EDF ENR) revenues thanks to sales of solar systems.

Reduction of 13 % in DSSA revenues owing to an unfavourable base of comparison after a record year in 2008.

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This increase was attributable to :- the signifi cant increase in Electricity generation, in

spite of unfavourable wind conditions on both sides of the Atlantic,

- the excellent profi tability of the DSSA segment, - the improved performance of the Distributed

energies business.

Growth was fairly balanced between Europe (42.2 %) and North America (57.8 %). EBITDA reached €334 million, signifi cantly beating our estimate of €280 million to €300 million.


TTHEE TECHNICAL CCOMMITTEES OF THE BOARD OOFF DIRECTORSS

AUDIT AND RISK COMMITTEE

Members : Élie Cohen (President), Thomas Piquemal and Jean Thomazeau.Duties : Assists the Board of Directors in ensuring that the Company’s parent company fi nancial statements and the Group’s consolidated fi nancial statements provide a true and fair view, and in safeguarding the quality of the internal control framework and information reported to shareholders and the market. It follows up on matters related to the preparation and control of accounting and fi nancial information.

NOMINATIONS AND REMUNERATION COMMITTEE

Members : Pierre Richard (President), Pierre Lederer and Pâris MouratoglouDuties : Lays the groundwork for the decisions of the Board of Directors on compensation and benefi ts in their various forms of the Company’s offi cers and directors (Chief Executive Offi cer, Chief Operating Offi cers, Directors, Chairman of the Board). Examines applications for all offi ces and directorships and makes recommendations to the Board.

STRATEGY COMMITTEE

Members : Élie Cohen (President), Daniel Camus, Pierre Lederer, Pâris Mouratoglou and Jean Thomazeau.Duties : Assists the Board of Directors in implementing the Group’s strategy and its important investment operations.

EEDDDF ENERGGIEES NOUVVEELLLES’ EXEECCUTIVE CCOOOMMITTEEE at 30 April 2010

David Corchia Chief Executive Offi cerYvon André Chief Operating Offi cer (France and New Activities)Philippe Crouzat Chief Financial Offi cerChristophe Geffray Chief Operating Offi cer (Industry)Laurence Juin Deputy Chief Executive Offi cer (Southern Europe)Olivier Paquier Chief Operating Offi cer (Distributed Energies)

From left to right (standing) : Christophe Geffray, Olivier Paquier, David Corchia, Pâris Mouratoglou, Philippe Crouzat.

From left to right (sitting) : Laurence Juin, Yvon André.

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CCOORPORRAAATE GOOVVVERNANNCE

PRINCIPLES OF GOVERNANCE

The governance principles adopted by the Group since its IPO ensure that it operates transparently and independently.

TTHE BOARD OFF DIRRECTORS OF EDDF ENERGIES NNOOUUVELLESat 30 April 2010

INDEPENDENTDIRECTORS1

Élie CohenResearch Director at the CNRSProfessor at Sciences PoMember of the Prime Minister’s Economic Analysis Board

Pierre RichardFormer Chairman of the Board of Directors of Dexia SAExpert appraiser with the Board of Directors of the European Investment Bank

DIRECTORSFOR THE EDF GROUP

Daniel CamusEDF’s Group Senior Executive Vice President in charge of International activities and Strategy

Thomas PiquemalEDF’s Group Senior Executive Vice President in charge of Finance

La société EDEVRepresented by Pierre LedererSenior Executive Vice PresidentCustomers of EDF SA

Corinne FauChief Financial Offi cer for the Commerce department of EDF

DIRECTORSFOR THE MOURATOGLOU GROUP

Pâris MouratoglouChairman of the Board of Directors

La Société Internationale d’Investissements FinanciersRepresented by Catherine Mouratoglou

Jean ThomazeauFormer Advisor to the CEO of BNP Paribas

1- Élie Cohen and Pierre Richard are independent Directors as defi ned in the Bouton report on corporate governance and based on the criteria adopted in the Internal Charter.

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EDF EN's share price performance relative to the SBF 120 index

SSHHHARE PRRICE PEERRFORMMAANCE

During 2009, EDF Energies Nouvelles’ share price moved up 43 % while the benchmark CAC 40 and SBF 120 indices rose by respectively 22.3 % and 23.7 % over the same period. The share price fl uctuated between € 25.1 and € 38.7 over the year, before ending at € 36 on 31 December 2009, representing market capitalisation of € 2.79 billion.

20

Jan. 09 Jan. 10Feb. Mar. Apr. May Jun. Jul. Aug. Sep Oct. Nov. Dec.

25

30

35

40

■ EDF EN

■ SBF 120

Dividendsin € per share

HHIIGHERR DDDIVIDENNND

At the General meeting of the shareholders on 26 May 2010, EDF EN is set to propose paying out a dividend of € 0.38 per share, representing an increase of 40.7 % on the previous year. This would represent a payout of 30.1 % of net income, Group share.

2009

0.27

2010

0.38*

2008

0.26

2007

0.11

* Size of the dividend to be proposed at the Annual General Meeting on 26 May 2010

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AAAAGENNDDDA

10 February 2010Full year 2009 results

29 April 2010Q1 2010 revenue

26 May 20102010 Annual Shareholders’ Meeting

15 June 20102010 Dividend payment

28 July 2010Half year 2010 results

28 October 2010Q3 2010 revenues

SSSTTOCKK MARRKKKET/SHHHAREEHHHOLDEERRS

2009 brought a strong rally in EDF Energies Nouvelles shares, which recorded a gain of 43 %. This impressive performance refl ects the Group’s robust business model. Since its IPO in 2006, the Group has successfully gained and retained the trust of investors by delivering on its commitments.

SSTTTABLE OOOWNERRSSSHIP STTRRUCTUURRRE

At 31 December 2009, EDF Energies Nouvelles was 50 %-held by the EDF group and 25.1 %-owned by the Mouratoglou group, with the free fl oat accounting for the remaining 24.9 % of the capital. This structure has not changed since 31 December 2008. As it does every year, EDF EN commissioned a study of its shareholder base during December 2009. The results showed that institutional investors account for 75.5 % of the free fl oat, breaking down into 42 % in France, 22 % in continental Europe outside France, 18 % in the United Kingdom and Ireland and 17 % in North America.

RREEGULAARRR DIALOOOGUE WWWIITH INVVVESTORRSS

Since it was fl oated in November 2006, the Group has endeavoured to maintain a steady dialogue with the French and international fi nancial community in accordance with the rules on transparency and equal access to information. Numerous meetings have been arranged between company executives and institutional investors, notably after the publication of full-year and interim results. Roadshows in Europe and the United States, which are held throughout the year, as well as the industry conferences attended by EDF EN, further enrich this dialogue. During 2009, the Group met with 155 institutions in 15 different cities through these roadshows and conferences.

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STOCK MARKETRECOVERY

24.9 %

25.1 %

50 %

Ownership of EDF Energies Nouvelles' capitalat 31 December 2009

■ EDF Group

■ Mouratoglou

Group

■ Public

Geographical breakdown of institutional investorsat 31 December 2009

17 %

22 %

18 %42 %

1 %

■ France

■ United Kingdom Ireland

■ Continental Europe

■ North America

■ Rest of the world


SUSTAINABLE GROWTH

Renewable energies have made steady gains for the past 10 years. This growth is predicated on trends linked to fundamental needs, energy supplies and the protection of the planet. To meet these sustainability-related challenges, EDF Energies Nouvelles has rolled out an expansion strategy based on a long-term view.

1312


Despite the lack of a political agreement at the Copenhagen summit, are you optimistic about the rate of development of renewable energy resources?The results of the UN climate change talks in Copenhagen may

have fallen short of expectations, and we have not achieved the

numbers we need to limit the rise in global temperature to 2°C

over the coming decades. It will be closer to 3°C based on current

emissions reduction pledges agreed in Copenhagen. However, we

do not expect renewables deployment to suffer too much from the

lack of agreement in Copenhagen, at least in the very near term.

Their rapid growth will be mainly led by the national policies

currently implemented in more than 70 countries worldwide,

including major economic economies, which now recognise the

need to reduce their emission intensity. For instance, China

doubled its wind power capacity and is now the largest wind

power market in the world, in terms of installed capacity in 2009.

What are the challenges to fostering increased use of these new energy sources?The integration of new technologies, in particular of variable

renewable power into electricity grids, is one of the main challenges.

There are very positive signs, with the maturing of wind energy and

the rise of new energy sources such as solar power and offshore

wind power. However, it is crucial to foster interconnection

between networks and to implement other measures to increase the

fl exibility of power systems, including ‘smart grids’, to be able to use

large shares of these new sources of energy.

What drives development of these new forms of energy?In Europe, support for green energy often arises from a fear of

climate change. In emerging economies such as in China and

India, more attention is paid to creating secure energy supplies

EXPERTT VIEW

« We need to harness all forms of renewable energy »

Nobuo TanakaExecutive Director of the IEAInternational Energy Agency

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in the face of dwindling supplies of fossil fuels. The United

States and Japan are closer to the European position, although

U.S. President Obama now puts the focus on energy security.

What do you see as the most promising energy sources? Wind power is the most productive in the immediate future,

which explains its very rapid growth. In our 450 scenario,

wind power should account for 30 % of additional electricity

production at the global level between now and 2030. We also

expect solar energy (both solar photovoltaics and concentrating

solar power) to increase by 30 % per annum and emerge as a

major energy source. But we need to continue our R&D efforts for

all green energy sources, because we don’t know what the energy

mix will be in the long term and there is no single renewable

energy technology that can serve as a ‘silver bullet’ solution.

Are you satisfi ed with the way the private sector has adopted new technologies and is developing renewable energy offers?To support a global transition to more effi cient, low-carbon

energy systems, the IEA estimates that $10.5 trillion in

additional investments is needed between now and 2030,

of which most will be carried out by the private sector. The

movement has begun, as indicated by the many initiatives

underway and facilitated by various stimulus packages in

response to the global economic crisis. But to achieve the

required pace of development, short-term measures must be

married with longer-term policy frameworks.

Predictable and effective national policies will be crucial in

the coming years. At a later stage, any international agreement

with precise commitments will serve to further support and

encourage private business in making these investments.

SUSTTTAINABBLE BREAAAKTHRROOUGHH MMADE BY RREENEWWAABLE EENNERGY

The growth of wind and solar energy has made a signifi cant mark on the landscape of the global energy industry over the past ten years. Between 1998 and 2008, output of wind- and solar-generated electricity increased by an average of 29.4 % p.a. and 29.6 % respectively,

Neither the tough economic conditions that prevailed during 2009, nor the lacklustre results achieved at the Copenhagen Summit affected the rapid and continuous gains made by renewable energies. These markets are benefi ting from the long-term energy policies pursued in various countries. Stimulus plans have reinforced this support and highlighted the importance of the green economy for the future.

MARKETS

RENEWABLE ENERGY AN ESSENTIAL

compared with a CAGR in worldwide production of 3.5 %. In absolute terms, the contribution made by wind and solar energy to global production still remains modest. For instance, during 2009, wind energy accounted for 5 % of output in Western

Source : 11th inventory of worldwide electricity generation (EDF - Observ’ER)

29,6 %

WINDFOSSIL

SOLAR

BIOMASS

GEOTHERMAL HYDRO

NUCLEAR

29,4 %

6,6 %

3,0 %2,2 %

1,1 %

4,2 %

■ Wind

■ Solar

■ Other

■■ Nuclear

■ Fossil

Source : EWEA

1- EWEA / AWEA

55,0 %

22,3 %

2,2 % 0,1 %

20,4 %

57,0 %

15,6 %

9,1 % 1,6 %

16,7 %

11114444

CAGR in worldwide electricity generation

1998-2008

EU energy mix in 2000

In installed capacity

UE energy mix in 2009

In installed capacity

Europe and 2 % in the United States 1. However, strong momentum has built up over the past ten years in terms of installed capacity. Wind energy has gained ground from other types of generation in Europe, moving up from 2 % of installed capacity in 2000 to 9 % by 2009.


SPECCTACUULLAR BREAAAKTHRROOUGHH IIN THE SSOLARR SEGMMENT

Since 1999, the solar photovoltaic market has enjoyed brisk growth, with a very strong acceleration over the past two years. Capacity surged from 1,166 MWp in 1999 to over 21,000 MWp worldwide by the end of 2009.

During 2009, solar photovoltaic continued to record impressive gains, in spite of its capital intensity and the tough economic climate, with 6,400 MWp in additional capacity being rolled out compared with 5,600 MWp in 2008 2.

This further strong growth during 2009 was chiefly driven by the German market (3,811 MWp in capacity added in 2009), which held onto its global leadership (close to 10,000 MWp in total capacity at year-end 2009). Other markets are also coming to the fore in the European Union, including Italy (574 MWp added in 2009), which is turning out to be one of the most promising, while France (185 MWp added) also recorded a strong increase in its capacity. Spain experienced far slower expansion owing to the combined effect of a less favourable

■ Total at year-end 2008

■ Capacity added in 2009

289 : total capacity at year-end 2009

regulatory framework and the fi nancial crisis (increase of 99 MWp in 2009 compared with 2,689 MWp in 2008).

Alongside Europe, Japan, which hooked up 484 MWp in capacity to the grid, ranks third in terms of the dynamism of its market during 2009, followed by the United States, which added 475 MWp in new capacity. Expansion in solar energy around the world is set to gain pace throughout the decade 3.

Solar : growth in cumulative global installed capacity

in GWp

Source : EPIA World Market Outlook Mars 2009 Sources : Eurobserv'ER - Baromètre photovoltaïque

*Estimated fi gures

1.2 1.4 1.8 2.2 2.83.8

5.26.8

9.2

99 00 01 02 03 04 05 06 07 08 09

14.7

21.1

Solar : Growth in installed capacity between 2008 and 2009 by country

in MWp

2- EPIA : March 2010 press release

3- Eurobserv’ER - Photovoltaic barometer

9,830

3,520

2,633

1,650

1,032

289

55

Germany

Spain

Japan*

United States*

Italy

France

Greece

MAAARKKETTS

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STEAAADY GAAINS IN WWWIND EENNERGYY

Demonstrating its industrial maturity, the wind energy market has enjoyed a steady pace of growth over the past ten years. The global installed base has increased twelve-fold, with capacity moving up from 13,600 MW in 1999 to 158,505 MW by the end of 2009.

With 37,500 MW in additional capacity, the wind energy market recorded another increase of over 30 % during 2009 in worldwide installed capacity compared with at year-end 2008.Doubling its capacity once again, China recorded the strongest increase during 2009 (13,803 MW in additional capacity) followed by the US (9,996 MW increase). This performance lifted China into second position in the global wind energy rankings (25,805 MW in total capacity at year-end 2009) behind the United States (35,064 MW in installed capacity), which stayed in top spot. The European Union saw its growth driven by its two traditional powerhouses, namely Spain (increase of 2,459 MW) and Germany (1,917 MW). France’s capacity increased by 1,088 MW, putting it behind Italy (up 1,114 MW) with the United Kingdom hot on its heels (up 1,077 MW).

Wind : growth in installed capacity between 2008 and 2009 by country

in MW

Source : GWEC – April 2010

■ Total at year-end 2008

■ Capacity added in 2009

4,492 MW : total capacity at year-end 2009

Wind : growth in cumulative global installed capacity

in GW

99 09080706050403020100

Source : GWEC – April 2010

158.5

120.6

93.8

74.159.1

47.639.4

31.123.917.413.6

United States

China

Germany

Spain

India

Italy

France

United Kingdom

Portugal

Canada

Greece

Turkey

Poland

Belgium

Mexico

25,805

25,777

19,149

10,926

4,850

4,492

4,051

3,535

3,319

1,087

801

725

563

202

35,064


Stimulus plans have placed signifi cant emphasis on renewable energies. Does this sector of activity harbour the prospect of sustainable economic growth?

The underlying trends are clearly moving in this direction.

The cost of natural resources will tend to increase going forward,

perhaps signifi cantly. More countries with a large population,

such as China, India and Brazil, are set to experience strong

growth in their demand for energy. Against this backdrop of

growing demand, the higher cost of fossil fuels and energy

in general is a factor that needs to be taken into account.

All activities aimed at economising fossil fuel energies can thus

aspire to strong growth. In addition, the risks arising from

climate change also mean that the cost of carbon emissions

needs to be added to the market price or that quotas will have

to be set for carbon energies. The fi ght against greenhouse effects

is thus a second reason why renewable energies are poised to

enjoy sustained growth.

What are the challenges facing governments as they seek to promote the emergence of a green economy?

When governments decide to accelerate the expansion of certain

sectors, the challenge lies in achieving a balance between

different sources of growth and the right level of intervention.

The right incentives must be provided while avoiding two pitfalls,

i.e. encouraging speculation and supporting business activities

that cannot survive long without subsidies. Government

intervention represents a major constraint and expense for the

authorities, which must therefore stand up to a cost/benefi t

analysis. The key question in setting the right level of investment

is : what is the cost to national economies and the impact in

terms of profi ts? Furthermore, since the climate is a global

public asset, efforts to combat greenhouse effect, which

legitimise the need for public intervention, must be as global in

their scope and as coordinated as possible.

What conditions need to be satisfi ed for the industrial benefi ts to become signifi cant?

State subsidies must also be focused on the industrial benefi ts

for regions. The top priority remains the development of

competitive energy sources that are able to meet future demand.

In this respect, innovation and research play a key role in the

emergence of technological breakthroughs. The creation of new

industries depends on support for R&D, provided that it delivers

actual products or services, and thus on the ability to get new

industrial segments going rapidly. Training is also a major factor

in the development of these solutions, leading to a positive

impact on employment. Countries that have successfully

embraced renewable energies and are now investing not only in

stimulating demand but also in setting up whole new sectors of

industry specialising in the new technologies will be the prime

benefi ciaries of this new growth.

EXPERTT VIEW

« Renewable energies, an investment in the future »

11119999

Michel DidierPresident of COE-REXECODEInstitute for Economic Observation and Research for the Expansion of the Economy and Business Development

11118888

ECONNNOMICCC MOTIVVES

The growth in renewable energies has been instrumental in the emergence of a green economy. At a time when developed countries are suffering from the effects of deindustrialisation, these new segments are crucially important to their economies. Renewable energies provide an opportunity to create new businesses and jobs. According to the GWEC, the wind energy market alone was worth €45 billion ($63 billion) worldwide in 2009. It already employs half a million people worldwide.

A priority in stimulus plansA hefty part of the economic stimulus plans agreed by most of the leading countries in 2009 was devoted to the green economy and renewable energy in particular. In the United States, the Obama

MAAARKKETTS

ENGINES OOFF EXPAANNSION

Meeting demand for energyWhile there is debate about the timing of possible shortages, the planet only has fi nite fossil fuel reserves. At the same time, the International Energy Agency forecasts that total energy demand is expected to grow by 40 % out to 2030 owing to demographics and the growth in the major emerging markets.

Promoting energy independence Renewable energies also help to meet the determination of several countries to restrict their energy dependence. This obviously costly dependence coupled with the increasing scarcity of fossil fuels is also potentially a source of tension for countries that do not possess their own resources.

Combating global warming Ahead of the Copenhagen Summit in late 2009, the IEA published its “450 Scenario”, which aims to curb the increase in temperatures across the globe to 2°C over this century. The name of this scenario refers to the atmospheric concentration of CO2 that the IEA has set as its maximum limit 1.To achieve this goal, the IEA recommends a profound shift in the energy mix by 2030. The development of renewable energies should by itself pave the way for 20 % of the required reductions in CO2 emissions. Although the Copenhagen summit did not lead to a political agreement, many leading countries, chief among them were China and the United States, are working hard to develop renewable energies.

1- 450 part per million (ppm)

administration’s plan provides for around $100 billion to be invested in the energy sector, including 30 % to finance the production of renewables, with a view to doubling this over three years.

In France, €5 billion of the proceeds from the Grand Emprunt bond issue are to be set aside for sustainable development projects, alongside the €19 billion already committed by the French government as part of the Grenelle environmental summit.In the United Kingdom, the government plans to invest £75 billion in building offshore wind farms by 2020. China also plans to devote massive investment to renewables as part of its $221 billion stimulus plan.


PPAAAYS D’IMMMPLANTTAATTION D’EEDF EN

STRATEGY MATTERS

Will thee developmmeent of thesse aadditional segmentts be detrimmmental to thhe core business?

EDF EN’s core business is generating renewable electricity with an emphasis on two priority segments, namely wind and solar photovoltaic, into which almost all its investment is channelled. This said, the renewable energies sector is made up of numerous different segments and yet more technological options. It is hard to predict in advance when and where the technological breakthroughs that will secure the future of a segment will occur. By establishing a presence across several markets, even on a small scale, the Group will be able to seize opportunities at a very early stage. For instance, during 2008, solar energy went from being a source of future growth to the Group’s second avenue of expansion alongside wind energy. During 2009, distributed energies went from a possible source of future growth to being a growth driver. Other energy sources could conceivably gain traction in the medium term.

EDF EN’’ss wind eneerrgy operattionns have enjoyedd strong grrowth over tthee past decade. Are theyyy on the veerrge of exhaausting their poottential?

The 2,650 MW in capacity built by EDF Energies Nouvelles in the wind energy segment is merely the tip of the iceberg. The Group boasts a very substantial development pipeline representing over 14,500 MW in high-quality projects. Of this capacity, 713 MW is already under construction and the requisite building permits have been obtained for more than 1,000 MW. The rest of the pipeline includes projects at various phases of development, including close to 40 % at an advanced stage. It is a highly diversified portfolio, including projects in 10 countries and a substantial proportion of capacity to be installed in North America, which still harbours tremendous potential. This pipeline of projects underpins the Group’s future growth potential.

AN INNNTERNAAATIONAAL STRAATTEGY GGGEAREDD TO GGRROWTTHH

As early as 2000, EDF Energies Nouvelles embarked on a programme of international expansion, since its domestic wind energy market did not fulfi l all the requisite criteria for growth at the time. In particular, the decision to move into the United States in 2002 shaped the Group’s development very signifi cantly.

Pursuing a selective approach to new positions The emergence of new sources of energy requires support from the authorities, plus attractive conditions. EDF EN chooses to operate in countries providing a regulatory framework favourable for renewable energies and political and currency stability.The Group also focuses in priority on countries with signifi cant growth potential still intact. Even within the US, EDF EN has adopted a selective approach, expanding primarily in states that have introduced a mandatory quota system (Renewable Por t folio Standard), obliging uti l it y companies to include renewable electricity in their energy mix.

Establishing a balanced presence At present, EDF Energies Nouvelles has balanced activities across Europe and North America. Its positions in 13 countries allow it to manage growth rates that vary from market to market and from year to year. Geographical diversification also

helps to spread risk across countries, be it climate, regulatory or technological in nature. Above all, it represents a means of seizing a larger number of opportunities for growth.

Spain

France

United Kingdom

BelgiumGermany

Bulgaria

GreeceTurkey

Italy

Portugal

United States

Mexico

Canada

EUROPE1,913.2 MW

including France472.8 MW

NORTH AMERICA1,032.2 MW

EDF ENN INTERNAATIONAL FOOOTPRINT

STTRAATTEGGYY

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ROBUST STRATEGIC

CHOICES

TWOO ENGINNES OF GGROWTH : WINDDD AND SSOLAR EENERGY

EDF Energies Nouvelles is expanding in several segments through modular investments geared to each one’s degree of technological and economic maturity. Wind and solar are the Group’s two priorities. Distributed energies are becoming a signifi cant area of business. Meanwhile, the Group is expanding selectively in other emerging segments. The multi-segment strategy is built around three main pillars.

Strengthening positions in the wind and solar segmentsOnshore wind energy, the Group’s original segment, is driving its growth. It represents 90 % of installed capacity. It will contribute the lion’s share of the objective of 4,200 MW in net capacity by 2012 thanks to its diversifi ed and high-quality portfolio of projects. Through the rapid take-off in solar photovoltaic over the past three years, solar photovoltaic has become the Group’s second main avenue of expansion. The Group is developing ground-based and roof-integrated solar photovoltaic facilities. It has drawn up a 500 MWp plan as part of its overall objective for year-end 2012. Most of the facilities it builds in these two segments

EDF Energies Nouvelles has founded its development as a producer of green electricity on consistent strategic principles : a multi-segment model, a balanced international presence and complementary business lines. Its coherent and well-orchestrated activities ensure that it will generate robust growth that stands the test of time.

are added to the Group’s generating portfolio, while others are sold to third parties as part of the Development and Sale of Structured Assets (DSSA) business.

Developing distributed energiesAlongside wind and solar energy, EDF EN is expanding in distributed energies, with a range of equipment and services geared to the needs of consumers and businesses allowing them to generate decentralised energy in their home or at their business premises. The priority is on installations of solar systems, a market harbouring strong growth potential.This activity, which is currently being pursued in France, is gaining in importance and may in future be rolled out to other countries.

Preparing sources of future growthSelective developments are undertaken in other segments to test their potential, such as biomass, biogas, marine energies and biofuels. These investments and shareholdings prepare the Group to seize opportunities in the medium term in emerging segments, depending on technological advances and regulatory changes.

WWWind enerrgyyy 22,66650 MW

SSoolar enerrgyyy 8800..9 MWp

BBiioogas 33 MMW

BBiioomass 2266 MW

HHyyydro 112288.4 MW

CCooogenerattiooon / Thermmaal 5577.1 MW

CCCCAPAPAAACITTYYY BYYYY SEGGGGMEENNNT EEEDF EEEN GGGROUUUUP


DEVELOPMENT AND SALE OF STRUCTURED ASSETS (DSSA)

Extraction of value from projects which fi nance most of the development costs

• Not a capital-intensive business • Lower EBITDA margin :

high revenues including construction costs

• Construction cycle of 6 to 18 months, pacing of projects, non-linear recognition of revenues and profi t

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STRATEGY MATTERS

Why has tthe Group iinvested in a pphotovoltaic productiooon facility inn FFrance?

EDF Energies Nouvelles and US-based First Solar joined forces in 2009 to build France’s largest solar panel manufacturing facility. The Group is set to cover half the cost of the investment. In return, it will receive the plant’s entire output of panels for its own supply chain during the plant’s first 10 years in operation. This said, EDF EN is not turning itself into an equipment manufacturer and is not embarking on a strategy of vertical integration. Its purpose is merely to secure its purchases over the long term at competitive rates. This deal will enable EDF EN to optimise and speed up the roll-out of its solar energy programme in France, a country in which the Group has big plans.

How doeess the develooppment of proojeects for its own account ffifit with thatt oof projects ffor third parties ?

The DSSA business sits perfectly alongside the development business. On the one hand, the DSSA segment helps to cover development costs and secure the future of development operations, while also generating projects for sale on the other hand. Its teams have two key roles : developing projects meeting the Group’s asset screening criteria and generating value over the long term, and developing projects that are intended for sale to third parties to help cover almost all the Group’s development costs. There is thus a virtuous circle between these two activities, which feed off and strengthen each other.

energy segments. This represents a large business in the United States where there is demand for turnkey power plants from local utilities. There is also significant potential in the solar segment in Europe.

Developing strategic expertise in Operations & MaintenanceThe skills acquired by the Group in the operation and maintenance of power plants gave rise to the O&M (Operations & Maintenance) business. A key strength of enXco, the leading player in the US wind segment, this business is now expanding in Europe following the creation of EDF EN Services during 2009. This business, which is conducted both for the Group’s own account and for third parties, represents an additional source of recurring revenues. But fi rst and foremost, it represents a strategic priority giving the Group significant expertise in managing the production facilities on which its performance and sustainability depend.

GENERATION

Core business

• Highly capital-intensive : business generating recurring revenue streams over a lengthy period

• No fuel costs (Excluding biomass, biofuels, biogas) : high EBITDA margin

• Growth mirroring the pace of investments

OPERATIONS & MAINTENANCE

Complementary strategic business ensuring the longevity of the production facilities

• Not a very capital-intensive activity• Lower EBITDA margin• Medium-term/long-term contracts

STTTRAAATTEGGGY

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STRATEGY MATTERS

Will thee economicc ccrisis provee too be a handicaapp or an opppportunity?

The economic crisis has not slowed the pace of EDF EN’s growth. In fact, it has created opportunities that the Group has been able to seize. For example, it has successfully strengthened its positions in Italy, where it has long had a presence, while also setting up a presence in Poland, a new market for the Group. EDF Energies Nouvelles has forged a strategic partnership with Greentech Energy Systems, a wind farm developer weakened by the crisis, under which the Group has the option of purchasing a 50 % stake in all the projects set up by its partner in Italy and in Poland. In a separate move, the Group purchased wind turbines on attractive terms in the North American secondary market.Even so, the crisis has made the process of securing project financing longer and more arduous. However, with the European Investment Bank, EDF EN agreed on an innovative financing scheme well-suited to its solar energy projects that will enable it to go ahead with its development plans in the photovoltaic segment.

Why dooees EDF EN hhave only aa mmodest presenccee in Germaanny and Spaain,, Europe’s two largggest wind ennergy marrkets?

The Group embarked on its expansion drive in the wind segment during 1999 by which time the German and Spanish markets had already taken off. Market operators had already sewn up these two markets between them to a very great extent. Instead, EDF EN decided to focus on markets at a far earlier stage of their development and with their growth potential intact, such as Portugal, Italy, France and the United Kingdom in Europe, and, from 2002, the United States.

Which ccoountries hharbour the grreatest potentiaaal for the GGrroup?

As a guiding principle, EDF Energies Nouvelles invests in promising markets with an attractive regulatory framework and a limited risk profile. Its entire strategy is not to bet on one, two or three markets, but to expand across several countries, several segments, and several businesses. Diversification is a real strength.

INTEGGGRATEDDD BUSINNEESSES TO HAARNESSSS VALUE

EDF Energies Nouvelles has the entire value chain covered, from the development of projects and the construction of power plants, through to the generation of green electricity and operations & maintenance services at facilities. This model has two key strengths : it can tap into the value created at each stage in the process and guarantee the quality of projects and installations, as well as the sustainability of assets.

Emphasis on organic growth in the generating portfolioEDF Energies Nouvelles has opted to pursue organic growth rather than to acquire facilities developed by other operators. The Group builds projects from its development pipeline and has predicated its expansion on maximising their value. From time to time, EDF EN may seize growth opportunities satisfying its profi tability standards. During 2009, the Group purchased a number of wind energy projects in Italy.

The strategy pursued by EDF EN is predicated on the expertise of its highly qualifi ed teams, which can handle all the phases of a project. These internal skills also provide the foundation for an additional business, i.e. services for third parties.

DSSA : selling facilities to third parties The Development and Sale of Structured Assets (DSSA) business consist s in developing and building generating facilities for sale to third parties. While this business is not EDF EN’s core business, it has a special place in its business model. For several years, the DSSA business has helped to cover the lion’s share of the Group’s overhead and development cost s . Accordingly, the Group has been able to use its equity capital to finance the construction of the power plants that EDF EN intends to operate itself. The DSSA business is active in both the wind and solar


VIGOROUS GROWTH

All EDF Energies Nouvelles’ business activities are enjoying vigorous growth, with a strong pace of development in wind energy, objectives being exceeded in solar energy and take-off underway in distributed energies. The Group is playing an active role in helping new technologies to emerge to prepare it for the future.

25

All EDDFF EEEnnneeerrgggiiiiieeesssssss NNNNNNNNNNNNNNNNNNNNNoooooooooooooooooooouuuuuuuuuuuuuuuuvvvvvvvvvvvvvveeeeeeeeeeeeeeellllllllllllllllllllllllleeeeeeeeeeeeeeessssssssssss’’’’’’’’’ bbbbbbbbuuuuuuuusssssssiiiiiiiinnnnnnneeeeeeessssssssssss aaaaaaaccccccttttttiiiiivvviiiiitttttiiiiiieeesss aaarrreee eeennjjjjooyyyyyiiiinnnnnggggg vvvvviiiiigggggooooorrrrrooooouuuuussss growthhh,,,, wwitthh aa strong pace off ddeevveeelllllllllllooooooooppppppppppppmmmmmmmmmmmmeeeeeeeeeeennnnnnnnnntttttttttttt iiiiiiiiiiinnnnnnnnn wwwwwwwwwwwiiiiiiiiiinnnnnnnnnddddddd eeeeeeennnnnnneeeeeeerrrrrrrggggggyyyyyy,, oooooobbbbbjjjjeeeeeccccctttttiiiiivvvvveeeeesssss bbbbbeeeeeiiiiinnnnngg exceedeeeedddd iinn ssoollaar eenneerrggyy aand take-off underway in dddddiiiisttttrriiiiiiibbbbbbbuuutttttteeddddd eeeeennneeeeerrggiiiiieess. TThhee GGroup iiss pplayyiinng aann aaccttiivvee rroollee iinn hheellppiinngg nneeww tteechhnolloggieess ttoo eemmeerrge to pprreeppaarree iitt ffoor tthhee ffuuutttuurree.

24


VIEWPOINT

Armando Manca di VillahermosaChief Executive Offi cer EDF EN Italia

Our workforce has grown from three to 23

people in just three years. This strong growth

has been accompanied by the acceleration

in our business. Our fi rst wind farm started

up in 2004. At year-end 2009, we had six

impressive projects to our name representing

290 MW in installed capacity. And we are

fi nalising the construction in Sardinia of

Italy’s largest wind farm (98.9 MW) under

a partnership with developer Greentech. In

the solar segment, we have been developing

ground-based and roof-integrated solar

power plants for the past two years. 20 MWp

has already been built and another 47 MWp

is under construction. Over time, our

projects have been getting more and more

powerful. From several hundred kWp

at year-end 2007, they may now exceed

10 MWp. We now serve these two markets

with a pioneering spirit, while maintaining

a lean structure and recruiting young talent.

Promotion is based purely on merit. For

example, young engineering graduates who

joined the Group three years ago have now

become experts. Each one has a 360-degree

vision of their activities. And yet their heads

are not even spinning! EDF EN Italia has a

start-up spirit that has helped to forge an

extremely dynamic corporate culture that

bodes very well for the future.

In Greece, the Group continued to expand thanks to its partnerships with local businesses, including national electricity company PPC, the Ktistor group and RETD, a developer of wind and solar energy projects. During 2009, EDF EN commissioned the Viotia II plant (38 MW) in central Greece. It possessed a total of 187.4 MW in installed capacity at year-end 2009. Seven other projects with a total of 140.6 MW in capacity are under construction, including the Skopies (18 MW) facility in Beotia, which was commissioned in March 2010.

On the other side of the Aegean, the Group commissioned its fi rst megawatts of capacity in Turkey, with 45 MW of the Soma I project, which will eventually have a total of 79.2 MW. This is a country into which EDF EN fi rst expanded during 2008 following the acquisition of a 50 % interest in Polat Enerji, a local player with solid industrial roots. At year-end 2009, EDF Energies Nouvelles boasted total capacity of 94 MW installed and 34.2 MW under construction.

2222227777

« We are developing the Italian market with a start-up spirit »

22,6650 MWin sservice

771133.4 MWuunndder constrrucction

1144,,573 MWW uunndder develoopmmment

EEEDF EN GRRROUPPPP WWWWindddd segggmennnt Total capacity at year-end 2009

During 2009, the Group stayed on track in spite of the crisis. EDF Energies Nouvelles steadily added new wind energy capacity in virtually all the countries in which it has a presence and consolidated its international positions.

WIND ENNERGYY

PACE MAINTAINED INWIND ENERGY

2222226666

INTERNATIONAL DYNAMISM

Wind energy, the Group’s original business segment, continued to expand during 2009 in line with its projections. With growth of close to 620 MW, installed capacity reached close to 2,650 MW gross around the world, representing an increase of 31 %. Facilities were commissioned almost right across the board, with the United States and France leading the way. At year-end 2009, EDF EN was working on/fi nalising the construction of over 700 MW in wind energy capacity. The portfolio of power plants under development remains stable and of a high quality at around 14,500 MW.

A CONTRIBUTION FROM ALL COUNTRIES IN EUROPE

In France, EDF Energies Nouvelles had a good year, commissioning seven new wind farms, representing 105 MW in installed capacity, i .e. Fiennes in the Nord department (11.5 MW), Veulettes in Seine-Maritime (8 MW), Canton de Bonneval (24 MW) in Eure-et-Loir, Sauveterre in Tarn-et-Garonne (12 MW), Castanet and Bassin de Thau (respectively 11.5 MW and 26 MW) in Hérault, and Les Barthes in Haute-Loire (12 MW). At the same time, the Fierville project (28 MW) in the Calvados department was sold.

(gross capacity)

Additional capacitycommissioned

in 2009

Capacityunder construction

at year-end 2009

United States +256.0 MW 251.0 MW

France +105.0 MW 60.0 MW

Italy +57.3 MW 147.6 MW

Turkey +45.0 MW 34.2 MW

United Kingdom +38.0 MW 50.0 MW

Greece +38.0 MW 140.6 MW

Mexico +37.5 MW 30.0 MW

Belgium +30.0 MW –

Portugal +20.0 MW –

WWWIND ENEERGGGY CAPAACCITY OF EDDFF ENERGIEESS NOUVELLLEES

The Group ramped up its positions in France, with 368.4 MW in installed capacity at year-end 2009, plus 112.2 MW in capacity built for third parties, representing a total of over 480 MW. Construction of a further 60 MW is underway.

In Italy, the Group forged a partnership during 2009 with Danish developer Greentech Energy Systems. The deal notably covers the acquisition of a 50 % stake in the Monte Grighine project (98.9 MW) in Sardinia, which is set to become Italy’s most powerful wind energy plant. During 2009, EDF EN commissioned 57.3 MW in capacity, including part of the Monte Grighine (25.3 MW) project and Minervino (32 MW) in Puglia. At year-end 2009, the Group’s total gross capacity stood at 291.4 MW. Projects under construction represented 147.6 MW, comprising the fi nal section of the Monte Grighine project (73.6 MW) and the Bonorva wind farm (74 MW) in Sardinia.

In the United Kingdom, the Group operates through EDF Energy Renewables, a joint venture with EDF Energy, a UK subsidiary of EDF. During 2009, EDF Energy Renewables developed and built the Long Park wind farm (38 MW) in Scotland. EDF Energies Nouvelles thus has a total of 177.2 MW in wind energy projects in the United Kingdom, and an additional 50 MW are under construction.


EXPANSION-DRIVEN JOBS

Daouda KoulibalyRessource Assessment Group Manager Wind and Solar

At what stage of development does the research department become involved?It steps in prior to a decision to invest in a new power plant. Our research department

provides developers with insight into the wind and photovoltaic energy potential of

their project. To do this, we launch wind and insolation measurement campaigns

at the targeted locations. We analyse the data over several months, sometimes over

several years, and correlate it with that provided by Météo France, the national

weather forecasting service. In the wind segment, our expertise includes selecting the

most suitable wind turbines. In the solar segment, we are also involved in specifying

the design for projects.

What is the signifi cance of these studies?A change of 3 % in wind strength at a site may lead to a change in its output of up

to 10 %. So it’s important to be as accurate as possible. In the photovoltaic segment,

these differences, though linear, may also have a considerable infl uence on the

profi tability of projects. Our calculations and projections form the underpinnings

of our knowledge of a power plant’s potential output. And thus, to some extent,

its quality. Once power plants are in operation, we refi ne our models by putting in

place feedback loops.

Your experience is well-known in the industry...Thanks to our partnership in R&D with EDF, from time to time we present scientifi c

research at conferences. In particular, we have published about LIDAR technology,

which we use to conduct laser-based wind measurement campaigns. Over time, we

have become a leading name on the European research department landscape.

1- EDF EN Canada (70 %) and

Renewable Energy System (30 %).

« Our future projections have a crucial infl uence on the quality of the power plants »

Further developments in Canada The Saint Laurent Energies consortium1 is overseeing the development of fi ve wind energy projects in Quebec with a total of 954 MW in capacity. During 2009, the Group and RES Canada entered into a framework agreement with REpower securing its turbine purchases for these wind farms. In Canada, enXco Service Canada Corporation has also started up operations & maintenance services for new customers.

2222228888

STRATEGIC CONTRIBUTION MADE BY NORTH AMERICA

Regulatory framework given fresh backing in the United States The stimulus plan proposed by Barack Obama incorporates stronger support for renewable energies. For instance, the Production Tax Credit (PTC), a federal subsidy granted to wind energy producers in the form of a tax credit proportional to the quantity of electricity generated, was renewed until the end of 2012. In addition, developers can also elect to receive the Investment Tax Credit until year-end 2010 and thus qualify for tax credits with immediate effect that are repayable in cash in respect of 30 % of investment costs. Lastly, mandatory renewable energy quotas known as Renewable Portfolio Standards remain in force across 29 states and the District of Columbia.

working on the construction of the Linden (50 MW) project in Washington State for the Southern California Public Power Authority and the Nobles project (201 MW) in Minnesota for Xcel Energy. The Operations & Maintenance service business was boosted by the signature during 2009 of 11 contracts, representing over 670 MW in additional turbines under management.

Partnership with the Walmart group in Mexico During 2009, EDF Energies Nouvelles continued to work on construction of the La Ventosa facility (67.5 MW) in Oaxaca state, Mexico. The power plant holds a 15-year power purchase agreement with the Walmart group. It was commissioned during March 2010. The facility has 27 wind turbines manufactured by US supplier Clipper Windpower. enXco Service Corporation and Clipper will provide the operations and maintenance services. The project received a prize on 11 March 2010 from Ex-Im Bank, the US export credit agency, in the presence of President Obama.

WINDD EENERRGGGGYY

enXco, a major subsidiary…Since 2002, the Group has been present in the United States via enXco. This California-based company, which is over 20 years old, is a leader in Operations & Maintenance services in the United States, with close to 5,400 wind turbines, representing 4,720 MW in capacity, under management. Aside from these longstanding activities, enXco is strengthening its positions in two strategic niches, i.e. the development and ownership of power plants, and the construction of power plants for third parties (DSSA business). At year-end 2009, enXco’s wind farms had a total of 965.4 MW in gross capacity, or one-third of the Group’s capacity, plus it had built around one thousand megawatts in facilities for third parties.

...with strong momentum across all its businessesIn its electricity generation (for own account) business, enXco commissioned the Shiloh II (150 MW) project in California and the Hoosier project (106 MW) in Indiana. The subsidiary continues to develop the Lakefi eld project (201 MW) in Minnesota. In the DSSA business, enXco del ivered the Crane Creek (99 MW) project in Iowa to Wisconsin Public Service Corporation and sold the Spearville II project (48 MW) in Kansas. At year-end 2009, the subsidiary was


start-up costs of the plant and in return will receive its entire output (equivalent to at least 100 MWp p.a.) over its fi rst ten years in service. The Group will secure its purchases at a competitive rate and thus be able to take part in the development of the French market, while paving the way for the creation of a fully-fledged solar industry.

The roof-integrated solar business also enjoyed a very good year, with the construction of 11.5 MWp in photovoltaic facilities on industrial, farm and municipal buildings. The construction of 19.5 MWp in additional capacity was launched.

During January 2010, the regulatory environment saw changes to the feed-in

tariff for solar electricity, which made it more attractive to locate large-scale ground-based solar facilities in less sunny regions, while restricting certain roof-integrated applications. These measures are set to encourage industry players to reduce construction costs.

« What is our greatest asset?Our credibility »

VIEWPOINT

Patrick CharignonVice President at EDF EN France Head of Building-Integrated Solar Development

During 2008, we started up the

photovoltaic business on large roof arrays

for businesses and local authorities, i.e.

logistics buildings, warehouses, public

equipment, industrial units and farm

buildings. Without being too idealistic,

we can foresee a future in which every

building is fi tted with solar panels and

generates its own electricity. At present,

our development team already comprises

15 project leaders handling around

180 projects under construction at

year-end 2009.

We market two types of solution to our

customers. They can either invest in a

power plant to become a generator of

electricity or rent the roof array to us. For

our customers, our credibility is our greatest

asset given the confi dence inspired by EDF,

our technical expertise and our long-term

commitment to owners. We select the

best panel manufacturers and forge

partnerships with the leading players in

the construction segment (architecture,

sealing, electrical contracting). We had a

very good year in 2009 with construction

of 19.5 MWp being launched. The

publication in January 2010 of the new

feed-in tariffs for solar electricity naturally

altered the situation, but we were able to

make adjustments to continue our business

and market new projects to our customers.

SOLAR MOMENTUM

CONFIRMED

3333330000

TAKE-OFF IN A NEW SEGMENT FOR THE GROUP

EDF Energies Nouvelles is present in two markets, i.e. ground-based photovoltaic plants and building-integrated facilities on roofs. The Group’s drive over the past two years to establish positions in several countries and to develop a portfolio of high-quality projects came to fruition in 20 0 9. Numerous fa c i l i t i e s were commissioned in France, Canada, Italy and the United States. Installed capacity quadrupled, rising from 20.8 MWp to 80.9 MWp. At year-end 2009, construction

During 2009, solar energy started to take its place as the Group’s second avenue of expansion alongside wind energy. Installed capacity quadrupled during the year. It signifi cantly exceeded the objectives that the Group had set itself, confi rming the segment’s momentum.

of close to 30 power plants continued. They will represent close to 140 MWp in additional capacity. With 220 MWp in service or under construction, the Group’s objective of 100 MWp to 150 MWp was roundly beaten. The portfolio of projects under development posted strong growth to top 2,900 MWp.

A SIGNIFICANT TAKE-OFF IN EUROPE

Big ambitions in FranceAt year-end 2009, the installed base of photovoltaic capacity in France had grown sharply to reach 289 MWp. EDF Energies Nouvelles benefi ted from this momentum and built three new ground-based photovoltaic facilities for its own account during 2009, representing 18.5 MWp in total capacity. These included the Manosque and Sainte-Tulle projects (respectively 3.9 MWp and 4.1 MWp in capacity) located in the Alpes-de-Haute-Provence department and the La Roseraye facility (10.5 MWp) in Reunion. The Group also built the Mangassaye power plant (5.1 MWp) for a third party on the island. At year-end 2009, EDF EN had a total of 25.9 MWp in capacity in production and continued work on the Gabardan facility (possibly up to 76 MWp in capacity) in the Landes department.

In this large potential market, EDF Energies Nouvelles reached agreement during 2009 with First Solar, the world leader in thin-film modules, to build France’s largest solar panel manufacturing facility. EDF EN is set to cover half the investment and

SOLAAR ENEERRRGGYY

(gross capacity)

Additional capacitycommissioned

in 2009

Capacityunder construction

at year-end 2009

Canada +23,4 MWp –

France +18,5 MWp 57,2 MWp

Italy +13,2 MWp 47,2 MWp

United States +4,4 MWp 0,1 MWp

Spain – 28,3 MWp

Greece – 6,0 MWp

SSOOOLAR ENEERRGY CAPAACCITY OF EDDF ENERGIESSS NOUVELLLEES


LAUNCH OF A MULTI-SEGMENT STRATEGY IN NORTH AMERICA

In the United States, the market is likely to enjoy the benefi t until 2016 of the recently renewed the Investment Tax Credit system, as well as the pledges made by the new administration in the US. enXco adopted the Group’s multi-segment strategy from 2008 onwards and is now expanding in the solar photovoltaic segment. During 2009, the US subsidiary commis-sioned four new ground-based and build-ing-integrated photovoltaic facilities, with 4.4 MWp in total capacity, all of which are located in New Jersey, namely Hall’s Warehouse (1.8 MWp), Bayshore Recycling (0.7 MWp), Carrier Clinic (1.8 MWp) and Steven’s Institute (0.1 MWp). The Group has now completed projects represent-ing over 6 MWp in solar capacity in the United States. Going forward, it has a port-folio of over 600 MWp in projects under development. EDF Energies Nouvelles is also develop-ing a portfolio of photovoltaic projects in Canada, most of which are located in Ontario.During 2009, the Group commissioned a large-scale power plant, namely the Arnprior (23.4 MWp) project close to Ottawa, comprising over 300,000 solar modules.


Jérôme RémyChief Executive Offi cer of Colsun a 50 %-owned subsidiary of EDF EN

What is Colsun’s role?Colsun was founded in 2008 through an industrial partnership between

EDF Energies Nouvelles and Beck of Germany. We build ground-based solar

facilities and photovoltaic farm buildings. In 2009, we completed 73 roof arrays

- connection of which is in progress - representing installed capacity of 11 MWp.

At the same time, we are working on the very large Gabardan solar project in the

Landes department, which comprises more than one million photovoltaic modules.

What are the challenges facing this new business?We have two priorities in our day-to-day operations, i.e. safety and respect for the

environment. Safety is critical insofar as our electricians work at heights of over

11 metres on farm buildings and have to handle large devices on ground-based

projects. From an environmental standpoint, we work to minimise the impact of

our construction activities. I could add a third priority, which is the ability to recruit

talented individuals who are willing to go from project to project.

Is it possible to measure the impact of a project on the local economy?Yes. The construction of a 12 MWp power plant involves approximately 80 people,

including 40 locally recruited contractors. In addition, the outsourcing arrangements

for the manufacture of concrete, security and waste management need to be taken

into consideration. Generally speaking, a project on this scale entails local purchases

worth between €1 million and €2 million. And this does not even include the team’s

living expenses over a period of several months.

« Our projects inject impetusinto the local economy »

3333332222

A remarkable year in ItalyThe Italian regulations offer attractive feed-in tariffs that help to foster the emergence of new players. The process of obtaining adminis trat ive and grid connection permits remains long and complex. This said, business in Italy is extremely brisk. Initially located in Umbria and Puglia, EDF EN’s projects have now expanded into other regions, such the Marches, Sicily and Veneto. In 2009, the Group built 13.2 MWp in capacity. It now has 19 solar power plants, representing 18.9 MWp in capacity. Among the 20 other power plants under construction (47.2 MWp), the major projects are the Loreo facility (12.6 MWp) in Veneto and the Priolo (13.5 MWp) facility in Sicily.

Expansion drive extended in SpainTo control the strong development in the solar photovoltaic segment, the Spanish government cut the feed-in tariffs for electricity during 2008, which had a major impact on the market during 2009. In addition, permits for new power plants during 2009 and 2010 were awarded for just 500 MWp p.a. In Spain, the Group operates via Fotosolar, a 90%-owned subsidiary. At year-end 2009, three power plants were in production in Andalusia and Castille, with 6.7 MWp in capacity. Projects under construction represent a

SOLARR ENERGGYY

EEEDF EN GRRROUPPPSSSolarr seggmmennntt Total capacity at year-end 2009

8800.9 MWpinn sservice

113388.8 MWppuunndder constrrucction

22,9910 MWppuunndder develoopmmment

total of 28.3 MWp, with two located in Estremadura province and another 5.5 MWp project in Cordoba province. Fotosolar plans to roll out solar roof-integrated products for businesses, mirroring what it is already marketed in France and Italy.

Positions up for grabs in GreeceThe potential for solar energy in Greece ranks among the greatest in Europe. Several major wind energy industry players are establishing positions in the burgeoning photovoltaic market. The development of the Group’s projects is overseen by the EEN Hellas and RETD subsidiaries. At year-end 2009, EDF Energies Nouvelles was continuing to build its Xirokambi (6 MWp) facility in the Peloponnese.


« Momentum has now built up in distributed energies »

VIEWPOINT

Olivier PaquierChairman and Chief Executive Offi cer of EDF ENR

What do EDF ENR’s solutions consist of?We enable homeowners, farmers, small businesses and

municipal authorities to generate their own photovoltaic

electricity or to rent their roof array to EDF ENR. We

also have solutions for heating and generating sanitary

hot water, including fi replaces, inserts, space heaters

and pellet stoves. Our objective is to provide seamless

support to customers, from a diagnostic assessment right

through to the installation of equipment, including the

formalities for the purchase of the solar electricity.

What are the key challenges facing this new business?EDF ENR serves a consumer market in which competition

is very fi erce. This is the reason why we decided to

strengthen our sales force. During 2009, we launched

a new web site at www.edfenr.com and a call centre

handling calls to the 3913 number. From initial contact

through to installation at the customer’s home/business,

our support is highly appreciated, achieving a customer

satisfaction rate of close to 90 %.

What is the potential for this market?By year-end 2009, we had 3,460 customers in the

photovoltaic segment and had sold over 76,000 wood-

fi red heating devices. The medium- and long-term

potential for this market depends on public-sector

incentives and manufacturers’ ability to refi ne

each technology to lower the related costs. To date,

the momentum that has been built up appears to be

highly promising.

INCREASE IN EQUIPMENT SALES

Equipment sales recorded a significant increase during 2009 and really took off in the residential solar segment.Installations of photovoltaic systems in consumers’ homes more than tripled by comparison with the previous year to reach 3,460 units.In the business market, contracts were signed covering installations with 20 MWp in capacity, including 6.5 MWp actually

instal led during 2009. The Group identifi ed the residential solar segment as the key niche set to power the distributed energies business.Other activities recorded a more moderate increase. 76,000 wood-fired heating devices were sold, while 1,400 heat pump systems sales were recorded during 2009.

3333334444

DISTRIBUTED ENERGIES PROMISING

RESULTS

DISTRRIBUUTEDD EENNNERRGGIIEEES

DECENTRALISED ENERGIES

Generating energy at the point of consumption is a new concept in the energy sector. Distributed renewable energies involve the generation of electricity or heat at a home or other building. Decentralised and more diffuse, these energy forms can thus be distributed across an area.

Distributed renewable energies represent a market with great potential. The business, which represented a source of future growth for the Group in 2008, gained momentum in 2009. Residential solar in particular really took off.

STRONG DEVELOPMENT BY EDF ENR

The distributed energies business is run by EDF ENR, a joint venture between EDF Energies Nouvelles and EDF. EDF ENR markets equipment and services to consumers, businesses, municipal authorities and farmers for generating electricity and heat from renewable energies.

During 2009, EDF ENR set up a sales and marketing network and has rolled out a presence by market across France through three bridgehead subsidiaries, namely :

• Photon Technologies (a wholly-owned subsidiary since May 2010) for the distributed solar business : solar systems for consumers, as well as small roof arrays for businesses,

• Supra (an 82 %-owned subsidiary) for wood-fi red heating products.

• Ribo (a wholly-owned subsidiary) for the thermal and heat pump business,

EDF ENR rounded out this network by adding a business development platform. The Group set up a call handling unit, built a web site and established partnerships with service companies, such as Ma Banque and insurer Generali to expand its customer base of consumers.



Hanson WoodWind and Solar Developer at enXcoEDF EN’s subsidiary in the United States

What does a developer do? I spend a quarter of my time identifying new opportunities, and the remaining

three-quarters is dedicated to ensure current projects are developed successfully.

This job involves a wide range of tasks : negotiating with the utilities that purchase

the electricity, acquiring land, securing network interconnections, procuring

authorizations, conducting environmental studies. The renewable energy project

development process requires the ability to anticipate and solve problems.

Is there a difference between solar and wind power projects?After a long career in wind power, I made a switch to photovoltaic energy two years

ago. The processes are similar, yet different. The major difference between the two

technologies stem from Solar energy’s fl exibility in application. A Solar facility can

be installed on the ground on several dozen hectares, on a roof-top, or a specifi c

structure can be built to accommodate solar energy such as parking structures.

Solar provides an opportunity to apply innovative solutions as each customer is

unique with specifi c criteria as well as constraints. This makes projects particularly

interesting as solar development enjoys a diverse customer base

Can you describe a typical project?In February 2009, enXco was chosen from among 35 candidates to develop and build a

17-MW solar project for the Long Island Power Authority. Our fi rst step was to design

a creative approach to build a large facility in the rather urban area of Long Island New

York. Working in partnership with the county, we designed the fi rst distributed utility

scale project. Essentially we proposed to distribute the 17 MW across seven specifi c

county owned parking lots by installing carports. By installing Solar Carports, the

County supports renewable energy development, increases its revenues and the parked

commuter cars enjoy protection for the elements. The collaboration between enXco,

Suffolk County, and LIPA is such that everyone benefi ts from this innovative idea.

« A developer has to anticipate and solve problems »

BIOGAS : GENERATING ENERGY FROM WASTE

Since 2007, Verdesis has become EDF EN’s subsidiary specialising in harnessing biogas applications. It markets units capable of processing and enhancing the quality of biogas with a view to harnessing it notably through the generation of electricity. Initially based in Belgium, Verdesis is now expanding in France, the United Kingdom and Spain.Biogas recovery brings the benefit of avoiding atmospheric emissions of the gases produced by the fermentation of organic matter, powerful greenhouse gases, from waste landfills, treatment plants and agricultural waste methanisation units. At year-end 2009, the Group had four biogas units with a total of 3 MW in capacity in France and Belgium. Six new projects representing 4.5 MW in capacity are currently under construction.

BIOMASS AND BIOFUEL PLANTS ALREADY IN SERVICE

En Espagne, à Lucena, EDF EN exploite une centrale biomasse de 26 MW qui valorise des résidus de l’industrie de l’huile d’olive d’Andalousie. En Belgique, EDF EN s’est associé en 2008 à l’éthanolier Alco pour la construction à Gand d’une usine de biocarburants.

3333337777

OTHER MATURING SEGMENTS

WITH FUTURE PROMISE

OFFSHORE WIND ENERGY : FIRST TURBINES IN SERVICE

EDF Energies Nouvelles is participating in the development of a 300 MW offshore wind farm off Zeebrugge. The project, which is being led by the C-Power consortium, in which EDF EN owns an 18.3 % interest, is ultimately set to have 60 wind turbines.This facility, which is being built through a partnership with Belgian public-private companies, Dredging International, a specialist in maritime construction, and electricity company RWE, has reached a decisive stage. The fi rst six wind turbines with a total of 30 MW in capacity were commissioned in 2009.The facility is due to be completed over the period out to 2013. The offshore wind segment harbours great potential, but carries numerous constraints, such as grid connections, construction at sea and operations & maintenance. EDF Energies Nouvelles invested in C-Power to gain know-how that will stand it in good stead for other projects in Europe.

The Group has identifi ed innovative technologies or promising segments. It tests their effi cacy through selective investments and partnerships with specialists. It has two objectives, i.e. promoting the emergence of new segments and establishing a presence a long way upstream in new markets with great potential.

WAVE OF PARTNERSHIPS IN MARINE ENERGIES

During July 2009, EDF Energies Nouvelles set up a partnership with DCNS, a European leader in naval defence systems, which is embarking on a drive to diversify into marine energies. The deal covers the development and construction in Europe of projects employing various different technologies, such as marine thermal energy, wave energy and tidal energy. The Group has been looking at harnessing wave energy since 2008. An agreement with Renewable Energy Holding (REH) has

given EDF EN exclusive rights to use CETO technology in the northern hemisphere and on Reunion Island.This technology has two advantages : electricity is generated onshore and equipment remains underwater, and is thus invisible. Tests are being conducted in Australia on a reduced scale. In 2009, Carnegie replaced REH in this partnership.

3333336666

OTHEER SEGGMMMMMENTTSSS


VIRTUOUS GROWTH

EDF Energies Nouvelles is responsible vis-à-vis the communities in which it operates for generating CO2-free energies on a high-quality basis and at a competitive cost, which is equivalent over the long term to that of conventional energy, while contributing to the emergence of a green economy creating new jobs and industries.

3938


SPECCIALISEEDD TRAAINNING

In France, around 25 internal sessions were held during 2009 to share best practices, know-how and knowledge (technical, legal, tax and information systems). Several training courses were organised to cover safety and environmental issues, including authorisation for electrical work, working at heights, fi re safety and rescue missions, and authorisation to drive fork-lift trucks. Other educational initiatives about the environment (noise, landscape, project management) are offered to employees. The Colombiers Operations & Maintenance centre is the fi nal element in the Healthy, Safety and Environment programme based around its new training centre. In Italy, the subsidiary rolled out a safety-oriented organisation at its workplaces.In addition, a HSE offi cer was recruited in the United Kingdom. In the United States, enXco, which has a safety team with close to 40 members, continued and stepped up its training initiatives in this area.

MOBBBILITY EENCOUURRAGED

Mobility helps to foster exchanges and transfers of skills and expertise within the Group. This was notably the case for certain construction teams from Portugal, which also worked on projects in Italy and Mexico during 2009. Over the past few years, EDF EN has seen several successful examples of expatriation in the United Kingdom, Italy, Greece, the United States and Quebec. Mobility is also in action in France in certain southern regions and on Reunion Island.


Thierry MullerDirector of Operations & Maintenance, EDF Energies Nouvelles

What advantages does Operations & Maintenance expertise bring?It helps to optimise work on equipment and to boost production and also gives us

the latitude to select the internal or external provider and thus to cut our costs. In the

wind energy segment, we have enXco, our US subsidiary, which boasts over 20 years’

experience. There are no such established players in the solar segment. Accordingly,

we have developed our own supervision and maintenance systems. Lastly, we need

to assess and track performance in real time using indicators and metrics. Our initial

success in this area was to have boosted the availability rate for a wind farm that we

recently acquired in Europe from 85 % to over 97 %, thereby raising its performance.

We add value by making sure that power plants are available and generate electricity

as effi ciently as possible when the requisite wind and sun are present.

How does the Group organise this business?EDF EN Services was set up in 2009 to coordinate operations across Europe, with

centralised supervision of assets, procedures and maintenance systems for teams and

a training centre for new recruits. A consistent and production-oriented approach is

vital for success. On the ground, we share our resources with our Reetec subsidiary

in certain cases. This organisation is geared to our strategy of taking a long term view

of investments. We need to safeguard the life of our power plants and secure the

future of our generating portfolio.

What does the “green growth” concept mean to you?It’s something that we work towards achieving every day! For us, it accounted

for over 20 new hires during 2009. In particular, we work with training centres,

technical schools and specialised academies. At the same time, we are introducing

our own internal training schemes. Lastly, we are generally active at fairly isolated

locations, where every new job created is a welcome addition.

« Expertise in operational management yields performance improvements »

41

RESSSPONNSIBILITY

EDF Energies Nouvelles’ growth is synonymous with job creation. Over the past 10 years, the Group’s headcount has risen from 50 to 2,500. During 2009, the Group kept up its recruitment momentum.

JOBCREATION

AN EEXPANDDING GGRROUP

During 2009, EDF EN group’s headcount grew sharply, rising from 1,723 to 2,439 employees representing an increase of 41.6 % (including companies recently consolidated). This growth pattern was seen across all the businesses. Excluding EDF ENR, the increase in France came to 42.4 %, with the headcount reaching 329 employees. The headcount in the United States moved above the 600 mark (up 30.7 %). Almost all the other countries in Europe posted increases (up 26.4 % overall). Finally, the Group now has new staff in Canada.

NEWW SOURRCCES OF JOBS

EDF Energies Nouvelles is a leading international player in the renewable energies sector. The Group’s business activities, most of which were developed only recently and are innovative, require motivation, an ability to adapt and special know-how. 38 % of the Group’s workforce are between 26 and 35 years old. EDF Energies Nouvelles seeks out and selects highly qualifi ed applicants boasting significant human and professional experience.

International breakdown of the headcount

excluding EDF ENR

■ France

■ Europe (without France)

■ United States

■ Canada

2 %

22 %50 %

27 %

DEVELOPER

Lay the groundwork and coordinate

• Overall project management

• Selection of new sites

• Implementation of impact studies

(noise, fauna, fl ora, etc.)

• Handling of a project’s legal and

fi nancial aspects

• Genuine local coordination, in conjunction

with local offi cials

Qualities : multi-disciplinary expertise,

keen organisational abilities, conviction,

perseverance

CONSTRUCTION ENGINEER

Manage and implement

• Contractual arrangements for construction

projects (tenders, etc.)

• Project tracking/local leadership

• Handover testing and commissioning

Qualities : meticulousness, good negotiation

skills, tight management of priorities

OPERATIONS & MAINTENANCE ENGINEER

Oversee and optimise

• Failure and incident studies, identifi cation

of causes

• Organisation of feedback loops

• Recommendations for greater effi ciency

and solutions

• Possible inspections of equipment

Qualities : self-starter, good analytical skills,

ingenuity, responsiveness

4444440000

Annual growth

■ EDF ENR

■ EDF EN

1,224

1,215

2007 2008 2009

901

822

628

+ 41.6 %

Breakdown of the headcount by segment

■ 2009

■ 2008

Corporate function

Development & Construction

Operations & Maintenance

Distributed energies

172262197

405 467613

822

1,224

+ 48.9 %

+ 15 %

+ 54.6 %

+ 31.2 %



David AugeixRegional Director, South of France, EDF Energies Nouvelles

How are wind farm projects received on the ground ?A wind farm is generally considered by local decision makers in the same way as

a regional development project, such as a motorway or an airport. This means that

projects must be well thought-out, while making links between the national energy

priorities and local needs. Landscape integration is one of the keys to success.

Owing to their visibility, wind turbines must be situated very carefully. And fi rst

and foremost, we need to launch a broad consultation of the local population.

Are the issues the same in the solar segment?Solar power plants do not affect the landscape in the same way. On the other hand,

they raise the issue of confl icts of usage. Consultation is crucial in this area, too.

As in the wind segment, the local population needs to be able to have its say about

the project. Acceptance is always greater when local people have been able to see

the project evolve over time.

Do economic considerations help gain acceptance?Local offi cials are sensitive to the economic activity that a power plant brings to their

community. In the wind segment, statistics have shown that one job is created for

each 10 MW in capacity installed. Of course, this means local jobs, because they are

predominantly linked to the life of our generating facilities.

BUILDDING TTHE INDDUSTRIES OF TTHHE FUTTURE

The Group has identifi ed partners at the leading edge of innovation and is involved at various stages of their development. It provides fi nancial support for innovative young businesses. French company Exosun, which designs a system of panels on trackers to follow the path of the sun, was a beneficiary of this policy. The Group established a shareholding in this company and invested in two new pilot projects in the Aquitaine region implementing this technology on an industrial scale. Likewise, EDF EN purchased a stake in the capital of French start-up Nexcis, which has broken new ground with a technology producing thin-fi lm photovoltaic modules. The Group also provides support to Californian company Nanosolar, which uses a novel process to manufacture solar cells by printing them with CIGS 1. Lastly, EDF EN participates in R&D partnerships to develop technological breakthroughs unlocking further cost reductions. For instance, the Group has invested in a programme to develop very high-yield solar cells via the PV Alliance consortium, which brings together CE A re searcher s and Photowat t International.

1- Copper Indium Gallium Selenide

« Our power plants in service create local jobs »

4444442222

REVITALISATION OFTHE LOCAL

INDUSTRIAL FABRIC

RESSSPONNSIBILITY

BOOOSSTINGG LOCAAL ECONNOMIEES

EDF EN creates jobs locally, whether at a wind farm or at roof-integrated photovoltaic installations. For it s construction projects, the Group calls on the services of subcontractors, thereby providing industrial companies and craftsmen with business. Permanent operations & maintenance jobs are created on site at its generating facilities. In addition, outsourcing industries are taking shape or being adapted to supply the equipment required to install or manufac ture wind turb ines and modules.

An activity benefi ting from support from the public authorities must be conducted responsibly. Generating energy for the local community without CO2 emissions is not enough in itself. Job creation must be an aim, as well as cost competitiveness. The Group has embarked on efforts to boost local economies alongside local and regional authorities and is helping to create industries of the future.

In addition to these direct and indirect jobs, new funds fl ow into the coffers of small districts over long periods as a result of our activities. They help them to maintain community services or to see their territorial development projects through to fruition. And they generate additional income for rural populations. Wind energy is compatible with farming activities, while solar energy is a means of making the most of unproductive land. In many different cases, disused sites are getting a new lease of life, such as former quarries

or municipal dumps, military sites, industrial wastelands or polluted areas not suitable for construction, farm buildings that cannot be used for other purposes and devastated forests.

CONNTTRIBUUTTING TTOO THE CREAAATION OF A LLOOCAL INDUUUSTRY

Where markets are attractive and stable, the arrival of wind and solar power plants is often accompanied by the creation of local industries manufacturing the equipment they need. In the French solar segment, EDF Energies Nouvelles is heavily involved in the development of a manufacturing base. The Group has teamed up with US solar module manufacturer First Solar, the world leader in its fi eld, to build the largest solar panel manufacturing facility in France during 2010. Ultimately, this new plant will lead to the creation of 400 jobs in the Aquitaine region.



Lyrae StageData Manager at the enXco Service Corporation’s OCC in Minnesota

From the Operations Control Center (OCC), our trained technicians

monitor 2,734 wind turbines (3,964 MW) in fourteen U.S. states and

Quebec, Canada 365 days a year round-the-clock. We understand

the fi nancial investment on the part of the wind project owners

and apply advanced technology to optimize turbine availability and

profi tability.

The technicians can immediately detect problems on the more

than 46 control panels as a result of sophisticated color coding.

Once identifi ed, our goal is to safely restart the turbine within ten

minutes. If this is not possible, we notify service technicians and

coordinate their intervention to identify and remedy the fault.

Approximately 24 % of the turbines monitored from the OCC are

enXco owned. Another 70 % of the turbines monitored are owned

by either utilities or small developers where enXco Service Corp

provides comprehensive operation and maintenance services.

The remaining turbines only require the 24/7 monitoring service.

In all cases, the project owners realize the benefi ts of a NERC

compliant OCC, staffed by trained Operations Technicians, to keep

their investment turning to ensure peak performance and energy

production while keeping maintenance costs low.

« Our Operations Control Center provides 24/7 monitoring for more than 2,700 wind turbines »

COMMMMIT ITTSELF TO PPRROTECCTTING TTHHE ENVIRRONMMENT

EDF Energies Nouvelles undertakes to adopt a consistent approach to the environment. During 2009, the Group formally laid down its commitments in a new environmental policy :• control effects arising from the devel-

opment of green electricity generating facilities,

• abide by the applicable regulations and work on preventing the risk of pollution,

• structure the management and monitor-ing of service providers chosen,

• periodically check performance and make sure it is continuously improved.

Since 2005, the development, construction and asset management aspects of EDF Energies Nouvelles’ onshore wind activities in France have been ISO 14001 certifi ed. This certifi cation was confi rmed in 2009 during an audit conducted by AFNOR.

Act in conjunction with service providersEDF EN has opted to work with various wind turbine and photovoltaic panel manufacturers so that it is in a position to employ the best technology for each site and type of energy. They are active in product R&D, life cycle optimisation and eco-design.

MONNNITOR PPOWERR PLANNNTS DIRRECTLYY

EDF EN has made the optimisation and maintenance of the quality of its generating facilities one of its strategic priorities. The Group organises the operation and maintenance of its power plants in an integrated manner, comprising round-the-clock remote supervision of production, the design of maintenance programmes (inspection, power plant expertise, incident analysis) and on-site preventative and corrective maintenance. These activities have been conducted in Europe by EDF EN Services since 2009 from a centre in the south of France. In the United States, enXco, its US subsidiary, has applied this expertise for 20 years and provided the model adopted in Europe. The Group’s priority is to secure its portfolio of facilities and to optimise its generation at all times.

454444444444

QUALITY OF INSTALLATIONS

EDF Energies Nouvelles provides support for its power plants over the long term, from development through to operations & maintenance, and pays great attention to their quality. Territorial integration and landscaping set the best projects apart. A rigorous approach to construction and servicing of installations hold the key to high performance and a long life.

BUILLDD THEE BEST PRROJECT

EDF EN conducts wind and insolation measurement campaigns on s i te. The teams conduct studies covering the topography, easements and grid connections. They oversee environmental studies (fauna and fl ora), identify sensitive and protected sites and factor distances from housing and historic monuments into their planning. The impact in terms of job creation and contribution to the local economy is also taken into account in the project.

Integrate projects successfully within the landscape EDF Energies Nouvel les produces numerous photomontages. The goal is to propose an approach to new sites that takes into account nearby housing and terrain in line with the cultural and historic characteristics of the region. EDF EN prioritises the use of regional building materials, such as for the related substations.

Respect sensitive environments Fauna and fl ora are monitored very closely. Specific measures are taken, including changing facility locations to protect a natural zone, scheduling construction outside nesting periods, implementing protection and beaconing systems and monitoring bird and/or plant life after commissioning.

Listen and meet with local people Projects require a favourable reception on the ground and a high level of enthusiasm among elected officials. Where this condition is satisfi ed, developers launch the consultation stage. The quality of discussions is crucial for ensuring the best choices are made with regard to the success of the project and its acceptance. EDF EN encounters very few diffi culties once the power plant enters service and handles any issues on a case-by-case basis.

RESSSPONNSIBILITY

2009 ACTIV IT Y REPORT EDF ENERGIES NOUVELLESEDF ENERGIES NOUVELLEES

CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

47

The Group’s strong expansion has made it necessary to strengthen the internal control structure. Its deployment within the Group has helped to prevent and control the Group’s risks.

INTERNAL CCONTROL

SUPPORTING EXPANSION

INTERRNAL CCONTRROOL ORGAANISAATTION

The internal control system of the EDF Energies Nouvelles group was defi ned, documented and implemented in July 2006. It mirrors the key stages of the COSO framework1 and takes into account the general internal control principles outlined in the AMF’s reference framework published in January 2007.

This system is placed under the control of the Board of Directors and the Audit Committee under the responsibility of the executive management. At the companies in France, it draws on the business line and functional managers and at the signifi cant controlled subsidiaries outside France on local correspondents. The latter are responsible for implementing policies, norms and procedures defined by the Group’s executive management. Managers are responsible for implementing and monitoring internal control within their scope of authority. This responsibility is stated through assignment letters.

1- Committee Of Sponsoring Organisations of the treadway commission

Four levels of control• Level 1 : self-assessment performed by

all employees in line with the principles of the ethics and compliance charter adopted by the Group in 2006 and communicated to them.

• Level 2 : internal control performed by operational and functional managers.

• Level 3 : internal control performed by the manager of internal control in France and internal control managers at significant controlled subsidiaries outside France.

• Level 4 : corporate internal control.

Self-assessmentIn line with the AMF recommendations, EDF Energies Nouvelles has carried out a self-assessment since 2007 of the internal control system implemented, as well as a description of the action plans specifi c to each job, function or area.This self-assessment was carried out based on an internal control guide refl ecting the components of the COSO framework and incorporating the recommendations of the AMF reference framework.

THE EETHICCSS ANDD COMMMPLIANNCE PROGGGRAMMMME

The ethics and compliance charter, which was adopted by EDF Energies Nouvelles’ Board of Directors, formally defi nes the Group’s commitment to certain core values :

- respect for the individual and tolerance,- respect for the environment and

solidarity,- performance,- integrity,- diversity and multi-culturalism.

The ethics charter was circulated to all the Group’s employees. It is systematically handed out to new hires. This programme is also mentioned in contracts with suppliers and subcontractors.

4444446666


ASSETS

(in thousands of euros) 2008 reported 2008 restated* 2009

Goodwill 105,839 105,839 116,272

Other intangible assets 11,701 11,742 19,191

Property, plant and equipment 2,260,782 2,350,066 3,593,666

Investments in equity affi liates 29,630 29,630 34,867

Non-current fi nancial assets 91,042 91,042 104,849

Other receivables 192,107 188,857 200,315

Deferred tax assets 36,283 40,302 49,884

Non-current assets 2,727,384 2,817,478 4,119,044

Inventories and work in progress 279,167 279,292 584,210

Trade receivables 300,863 301,687 374,014

Current fi nancial assets 161,589 210,901 267,187

Other receivables 319,511 319,581 314,377

Cash and cash equivalents 632,137 584,185 466,285

Current assets 1,693,267 1,695,646 2,006,073

TOTAL ASSETS 4,420,651 4,513,124 6,125,117

LIABILITIES AND EQUITY


Share capital 124,109 124,109 124,109

Reserves and retained earnings 1,143,854 1,126,892 1,185,712

Group shareholders’ equity 1,267,963 1,251,001 1,309,821

Minority interests 223,057 223,057 262,647

TOTAL EQUITY 1,491,020 1,474,058 1,572,468

Provisions for employee benefi ts 1,475 1,475 2,207

Other provisions 13,357 13,357 17,758

Non-current provisions 14,832 14,832 19,965

Non-current fi nancial liabilities 907,393 1,003,667 2,160,292

Other payables 218,589 224,287 401,825

Deferred tax liabilities 98,967 94,581 111,310

Non-current liabilities 1,224,949 1,322,535 2,673,427

Provisions 894 894 6,256

Trade payables 217,902 218,019 230,242

Current fi nancial liabilities 1,104,057 1,104,939 1,316,109

Current tax liabilities 16,706 16,706 13,509

Other payables 350,291 361,141 293,141

Current liabilities 1,689,850 1,701,699 1,859,257

TOTAL LIABILITIES 4,420,651 4,513,124 6,125,117

BBBaalancceee sheeeett

44444449999


Revenues 1,006,634 1,015,368 1,173,077

Purchases used in generation and other purchases (584,697) (585,430) (415,569)

Personnel expenses (81,557) (81,557) (128,072)

External expenses (157,411) (157,883) (322,072)

Taxes other than income taxes (12,101) (12,486) (20,188)

Other operating expenses (57,428) (57,430) (42,215)

Other operating income 106,424 110,168 104,104

Net depreciation and amortization and charges to provisions (61,313) (65,290) (118,240)

Impairment losses - - (697)

Operating income 158,551 165,460 230,128

Cost of net debt (54,364) (41,583) (80,877)

Other fi nancial income and expenses 11,739 (5,966) (23,141)

Net fi nancial income/(expense) (42,625) (47,549) (104,018)

INCOME BEFORE TAX OF CONSOLIDATED COMPANIES 115,926 117,911 126,110

Income tax (37,119) (38,020) (21,390)

Share in income of equity affi liates (1,956) (1,956) (194)

Net income from discontinued operations - - -

CONSOLIDATED NET INCOME 76,851 77,935 104,526

Net income, Group share 69,557 70,641 97,946

Minority interests 7,294 7,294 6,580

Earnings per share attributable to holders of ordinary shares (€)- basic earnings per share- diluted earnings per share

1.051.05

1.071.07

1.271.27

* The 2008 fi gures were restated to take into account the change in the method of consolidation

used for certain US wind farms.

CCOONDENSEDD CCCONSOLIDAATTED FINANNCCIIAL STATEEMMMENTS

Income statement

4444448888


THEME-BASED GLOSSARY

WINDDD ENERRRGY

Wind energy : energy from the wind. In a wind turbine, it is converted by an elec-tricity generator in the nacelle. As they turn, the blades drive a slow axel connected to a multiplier. The wind energy is thus accelerated and then transmitted to the electricity generator.

Offshore wind energy : generation of electricity from wind turbines installed at sea.

Onshore wind energy : generation of electricity from wind turbines located onshore (as opposed to offshore).

Wind farm : a collection of wind turbines representing a single electricity generation facility connected to the local electricity grid. One farm can include anything from around ten to hundreds of wind turbines.

Wind turbine : also known as a windmill. The power of a wind turbine may vary for onshore units from several hundred kW per unit for the oldest generations to 3 MW per unit for the most recent turbines. At sea, offshore wind turbines can gener-ate up to 5 MW. A wind turbine comprises a mast, a nacelle and a rotor.

Rotor : part of the nacelle of a wind turbine. The rotor comprises the three blades of the wind turbine, as well as the hub that couples them together.

SOLAAAR ENEERGY

Solar energy : energy from the sun. Solar energy is currently used in two ways : to generate electricity (solar photovoltaic energy) or to generate heat (thermal solar energy).

Solar photovoltaic : generation of elec-tricity from modules or photovoltaic panels installed either on the ground or on build-ings. Solar photovoltaic energy may also be used at isolated locations for independ-ent domestic generation.

Thermal solar generation : installed solar capacity, usually in roof arrays (buildings or homes), that can be used to generate heat on site, i.e. for heating or sanitary hot water purposes, using solar collectors.

Solar power plant : connection of a large set of photovoltaic panels representing an electricity generation facility connected to the local electricity grid.

Photovoltaic cell : a unit that can directly convert the sun’s radiation into electrical energy by harnessing the photovoltaic effect. The electronic component exposed to the light (photons) generates an electrical tension (voltage). These cells are arranged in modules or photovoltaic panels.

OTHEEER RENNEWABLEE ENERRRGIES

Biogas : gas produced from the fermenta-tion of animal- or plant-based organic materials in the absence of oxygen. Biogas energy derives solely from methane. Biogas is thus a renewable form of the very widely used fossil fuel natural gas, which basically contains methane, plus butane, propane and other ingredients.

Biomass : organic material of plant or animal origin from a natural environment. From an energy perspective, biomass includes wood and wood by-products, industrial waste products (notably from the paper and food production sectors), agri-cultural products and by-products, animal by-products and urban waste (sludge from water treatment facilities, household waste, waste from rubbish dumps, etc.).

Marine energies : marine energies are renewable energies that can be converted using the possibilities offered by the sea, i.e. wave energy, marine current energy and thermal marine energy.

Hydro : generated through the movement or accumulation of an incompressible fl uid, such as fresh water or sea water. This movement produces mechanical force, which is used directly or converted into electricity.

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Cash-fl ow statement


Net income of consolidated companies 76,851 77,935 104,526

- Share in income of equity affi liates 1,956 1,956 194

- Depreciation, amortization and charges to provisions 61,686 65,663 140,987

- Unrealized gains and losses on changes in fair value (46) (47) (22,795)

- Capital gains/(losses) (17,871) (17,871) (2,361)

- Dividends received (23) (23) (113)

- Non-cash income and expenses linked to share-based payments 582 581 (4)

- Other non-cash income and expenses 5,274 5,274 (16,629)

- Income tax expense 1,622 1,626 17,582

- Change in deferred tax 35,725 36,622 4,395

- Impact of change in working capital requirement generated by operating activities (199,002) (205,029) (192,840)

- Cost of debt 54,364 41,583 80,877

Cash fl ow from operations before tax and interest 21,118 8,270 113,819

- Income tax paid (21,374) (21,376) (6,490)

NET CASH FLOW FROM OPERATING ACTIVITIES (13,106) 107,329

Acquisitions of non-current assets 967,564 (967,618) (1,277,788)

Proceeds from sales of property, plant and equipment and intangible assets 60,179 60,179 27,736

Acquisition of fi nancial assets (44,568) (44,567) (12,363)

Proceeds from the sale of fi nancial assets 5,728 5,728 3,459

Changes in loans and advances (368) (368) (1,772)

Dividends received 399 399 468

Impact of changes in scope of consolidation (62,724) (62,724) (29,573)

Other cash fl ows related to investing activities 931 931 (1,291)

NET CASH FLOW FROM INVESTING ACTIVITIES (1,007,987) (1,008,040) (1,291,124)

Dividends paid by parent company (16,106) (16,106) (20,908)

Dividends paid to minority shareholders (2,919) (2,919) (2,487)

Capital increase/(decrease) 540,401 540,401 2,059

Net sale/(acquisition) of treasury shares (3,523) (3,523) 1,378

Increase in borrowings 2,422,081 2,422,403 1,378,373

Repayment of borrowings (1,667,837) (1,668,596) (694,125)

Net interest payments (51,630) (39,215) (76,516)

Other cash fl ows from fi nancing activities (50,794) (49,878) 578,658

NET CASH FLOW FROM FINANCING ACTIVITIES 1,169,673 1,182,567 1,166,432

Effect of exchange rate fl uctuations (5,757) (5,752) 2,967

NET INCREASE IN CASH AND CASH EQUIVALENTS 155,673 155,669 (14,396)

Cash and cash equivalents - opening balance 289,920 290,087 445,756

Cash and cash equivalents - closing balance 445,593 445,756 431,360

NET CHANGE IN CASH AND CASH EQUIVALENTS 155,673 155,669 (14,396)

CCOOONDENSEED CONSOLIDDATED FINNAANCIAL STTAAATEMENTSS

555550000

2009 ACTIV IT Y REPORT

ENERRRGY COONTROOLL

All means implemented to use energy resources most effi ciently. This term refers to all energy savings, rational use of energy and alternative energy substitutions.

SUSTTAAINABBLLE DEVEEELOPMMEENT

Sustainable development : develop-ment that satisfi es current needs without compromising the ability of future genera-tions to satisfy their own needs.

Renewable energies : generated by the sun, wind, terrestrial heat, waterfalls, water currents or growth of plants, the exploitation of such energy results in little to no waste or pollutants. This type of energy is generated from permanent renewable sources. Renewable energies are categorised as “fl ow” energy rather than “stock” energy, the latter consisting of the limited deposits of fossil fuels, such as petroleum, coal, gas and uranium.

ISO 14001 : an international norm defi ned in 1996 by the International Organization of Standardization. Classifi ed in the same category as ISO 9001 (quality), this norm offers an Environmental Management System (EMS) to entities, which may be certified upon satisfaction of specific requirements.

COGGEN./THHERMAALL

Fossil energy : fossil energy is the chemical energy contained in fossil fuels. Over the course of geological history, less than 1 % of organic matter (biomass) has been buried in the ground or settled as sediment at the bottom of lakes and oceans. This matter then turned into kerogen and then into fossil fuels, such as petroleum, natural gas or coal.

Thermal energy : thermal energy is electricity generated from heat. Thermal power plants burn fossil fuels such as coal, natural gas or petroleum and generate electricity through steam.

Cogeneration : technique for the combined generat ion of heat and electricity. The advantage of cogeneration is that the heat generated by combustion may be recovered and utilised, whereas this heat is lost in the conventional generation of electricity.

Carbon dioxide (CO2) : a naturally-occurring gas, which is a product of biomass and fossil fuel combustion, as well as changes in land allocation and other industrial processes.

UNITTS OF MMEASUURREMENT

Megawatt (MW) : megawatt is a unit of measurement for power. It traditionally expresses the energy generation capacity of a generator (1 megawatt (MW) = 1 million watts).

Kilowatt hour (kWh) : a unit measuring energy and mechanical work. A kilowatt hour cor responds to the energy consumption of a 1,000 W electrical device in operation for one hour. Its multiples are also used : MWh (megawatt hour) or TWh (terawatt hour). 1 MWh = 1,000 kWh and 1 TWh = 1 billion kWh.

Peak watt (Wp) : peak watts is a measurement of the strength of a photovoltaic panel. Peak power represents the power generated by the panel at its maximum strength, with solar irradiation of 1,000 W/m2 and cell temperature of 25°C.

OTHEEER DEFFINITIONNSS

EDF EN’s gross capacity : total capacity of the Group’s electricity generating facilities. (Unless stated otherwise, all capacity fi gures given in this document are gross capacities).

EDF EN’s net capacity : capacity refl ecting the owned portion of the electricity generating facilities that it has built.

EBITDA : operating income before depre-ciation and amortisation, investment grants and impairment losses.

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TTHHEMEE-BBASEDDD GLOSSSSARY

WE ARE S INCERELY GR ATEFUL TO ALL THE

PEOPLE WHO PARTICIPATED IN THE INTERVIEWS

P U B L I S H E D I N T H I S A C T I V I T Y R E P O R T

Disclaimer

The fi gures and information in this activity report are provided for information purposes only and are not contractually binding. This document does not constitute an offer to sell or solicitation to buy securities in the United States or in any other country. This document contains forward-looking statements. EDF Energies Nouvelles believes that they are based on reasonable assumptions, which may prove to be inaccurate and which are in any event subject to risk factors and uncertainties. There is no certainty that the forecast events will occur or that the forecast results will actually be achieved. These potential risks and uncertainties and the assumptions underpinning these forward-looking statements are presented in EDF Energies Nouvelles’ Registration Document, notably in chapters 4 and 13 (which may be viewed on the AMF’s web site at www.amf-france.org or on EDF Energies Nouvelles’ website at www.edf-energies-nouvelles.com).

Photo credits

OECD/IAE/2007 (p.15) ; Stéphane de Bourgies (p.2, p.5, p.9) ; Bob Giraud (p.34) ; Philippe Heitz (p.44) ; Hervé Hôte - Agence Caméléon (cover, 2nd cover, p.12-13, p.17, p.20, p.22, p.27, p.29, p.31, p.32, p.33, p.35, p.38-39, p.41, p.42, p.43) ; Mohamed Khalfi (p.19) ; Jens Meier / REETEC (2nd cover, p.36) ; Miguel Merino - MStudio (p.24-25) ; Laurent Mignaux / MEEDDAT (p.16-17) ; Bertrand Noël (p.32) ; Dennis Schwartz (p.28-29) ; Tenesol (p.18) ; Patrice Thébault (cover)

Design and production

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Documents

EDF Energies Nouvelles Annual Report 2009