On Monday 25th March 2019, on the occasion of an official visit to France by Xi Jinping, the President of the People's Republic of China, EDF signed two agreements for low-carbon projects in China. The first agreement formally establishes the partnership entered into with the Chinese power utility China Energy Investment Corporation (CEI), seeking to jointly deliver two offshore wind power projects in China. The Dongtai IV and V offshore wind farms account for a total installed capacity of 500 MW and will be the EDF Group's first offshore projects in China. The second agreement, signed with the power utility Huadian, concerns the operation of a heating and air-conditioning network in the city of Wuhan.
EDF gains a foothold on the offshore wind market in China
The agreement cooperation signed with China Energy Investment, a leading industrial player on China's electricity market, concerns EDF's acquisition of a stake in the Dongtai IV and V offshore wind projects, located off the coast of Jiangsu Province north of Shanghai. The Dongtai IV project is currently being built; the construction of Dongtai V is scheduled to begin in 2019. Subject to the signing of the final contracts, both partners will build and operate a total installed capacity of 500 MW, which will be gradually commissioned by 2021.
With 3.8 GW of offshore wind capacity already in operation, China is a promising market which should continue to grow quickly and account for nearly one half of the global fleet by 2030 with 50 GW in operation.
Via its subsidiary EDF Renewables, the EDF Group is a well-established player on the world's offshore wind market with more than 500 people working exclusively in this sector, with solid skills in all key areas including the development, delivery and operation of a project. The Group is now operating or developing 5.3 GW of offshore wind power, whilst operating and maintaining 500 MW of this capacity. In total, the Group currently operates more than 13 GW of gross wind and solar capacity in France and around the world, including more than 310 MW in China.
An agreement for the operation of a heating and air-conditioning network in the city of Wuhan
EDF and the power utility Huandian, have signed a cooperation agreement aimed at enhancing the performance of a heating and air-conditioning network for one of the districts of the city of Wuhan. The network is expected to provide heating for 100,000 customers and air-conditioning for 500,000 square meters of office space. The signatories will jointly examine the feasibility of using smart energy management tools already being used by the EDF Group for the heating network in the city of Sanmenxia.
Jean-Bernard Lévy, EDF Group Chairman and Chief Executive Officer: “The agreements signed today consolidate EDF's foothold in China, a strategic country for the Group's international expansion. In China, EDF is now active in all main business segments, all of these helping the Group to support China's energy ambitions whilst reducing CO2 emissions: nuclear, renewables and energy services. As part of EDF's CAP 2030 strategy, the Group is aiming to triple its business volume outside of Europe”.
EDF in China
With over 35 years of business experience in China, the EDF Group is active in a number of energy market segments:
Nuclear: As part of a joint venture with China General Nuclear Power Corporation (CGN), the Group has built and has been operating, since December 2018, the first of two EPR reactors at Taishan nuclear power plant (3.5 GW). The second EPR (Taishan 2) is currently undergoing tests with a view to being commissioned in 2019. The plant will supply low-carbon electricity to approximately 5 million Chinese consumers. EDF is also assisting the CGN Group with the operation of its entire fleet.
Renewables: In July 2016, EDF Renewables, a subsidiary of the EDF Group, acquired a majority stake (80%) in UPC Asia Wind Management (AWM), which develops and builds wind projects in China. In 2018, the Group diversified its business in distributed solar power by signing a joint venture with ACC, seeking to develop solar-roofing solutions for industrial customers. Figures for year 2019 show that EDF Renewables has over 413 MW of gross wind and solar capacity under construction or in operation in China.
Energy services: Since 2016, EDF has been operating a heating network for 2 million square meters of housing in the city of Sanmenxia (Henan province). In the neighboring city of Lingbao, EDF is building a 35-MW biomass cogeneration plant which will supply heating and electricity. On the tropical island of Hainan (southern China), the Group has started building an air-conditioning network for tourist complexes. Via its subsidiary Citelum, which specializes in public lighting, EDF manages 100,000 street lights in the city of Kunming (south-western China).
Fossil-fired power: EDF holds a 49% stake in FZPC (JV with a Datang subsidiary), which built and now operates the Fuzhou ultra-supercritical coal-fired power plant. This technology is more efficient (approx. 44% in the case of Fuzhou) and also reduces environmental impact. Unit 1 was commissioned in late 2015 whilst unit 2 was commissioned in April 2016. EDF holds a stake in two other companies that operate fossil-fired power plants.
About EDF
A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: generation, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 39.8 million customers1, including 29.7 million in France. The Group generated consolidated sales of €69 billion in 2018. EDF is listed on the Paris Stock Exchange.
1 Customer numbers for the close of year 2018 are provided per delivery point. One customer may have two delivery points: one for electricity and another for gas.
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