Under the Euro Medium Term Note Programme ... - Finance - EDF

Risk Factors
Furthermore, available power may also depend on weather conditions. Thus, low water
levels or heat waves may limit nuclear power generation due to the requirement that rivers
downstream of facilities not exceed maximum temperatures. Similarly, power generated by
wind power or solar plants depends on wind conditions or hours of sunshine at the sites
where such facilities are installed.
Therefore, the EDF Group’s results reflect the seasonal character of the demand for
electricity and may be adversely affected by exceptional weather conditions or wind or
sunshine conditions that are less favourable than anticipated. In such case, the EDF Group
may have to compensate the reduced availability of economical power generation means by
using other means with higher production costs, or by having to access the wholesale
markets at high prices.
The EDF Group’s activities are sensitive to economic cycles and general economic
conditions
The EDF Group’s activities are sensitive to economic cycles and general economic
conditions in the geographical areas in which the EDF Group does business. An economic
slowdown in these areas would result in a drop in energy consumption, investments and
industrial production by the EDF Group’s customers and, consequently, would have a
negative effect on the demand for electricity and other services offered by the EDF Group.
The EDF Group cannot guarantee that the effects of an economic downturn, such as
experienced since October 2008, in the geographical areas in which it does business, will not
have a significant adverse impact on its activities, operating income, financial position or
outlook.
Technological choices made by the EDF Group may be outperformed by more
efficient technologies
The EDF Group’s business activities rely on a certain number of technological choices,
which may be outperformed by other technologies that prove more efficient, more profitable,
safer or more pertinent in light of possible future standardisation and standards than the
technologies used by the EDF Group. The use of such technologies by the EDF Group’s
competitors could reduce or eliminate the competitive advantage that the EDF Group has
obtained from certain of its technologies, and thus have a negative impact on its activities,
financial results and outlook.
The EDF Group is exposed to risks associated with the wholesale energy and CO2
emission allowances markets
In conducting its production, marketing and distribution activities, the EDF Group does
business in deregulated energy markets, primarily in Europe. Therefore, the EDF Group is
exposed to price fluctuations in the wholesale energy markets (electricity, gas, coal,
petroleum products) and the CO2 emissions allowances markets. These fluctuations are
particularly significant in the current context of major tensions and volatility in the energy
markets.
The EDF Group manages its exposure to these risks primarily through purchases and sales
on wholesale markets. With the exception of petroleum products markets, these are recent
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