Electricite de France (EDF) SWOT and PESTLE Analysis

Strength

1. Established R&D capabilities and strong computing capacity: EDF R&D team owns 9 research centers, out of which, three are stationed in France and six are spread internationally with a budget of over 510 million Euros. The Company’s R&D department always keeps in mind their strategic goals for 2030 and focuses on customers and regions, competitiveness of energy systems in France and abroad, nuclear and renewable energies and partnerships. The R&D wing, also provides its customers with expertise in large-scale digital simulation software and supercomputers. EDF’s R&D unit has a computing capacity of 4 petaflops, making it one of the largest players in this field. EDF has contributed in innovation throughout the year, leveraging it in various vital projects like offshore wind power, sowee connected station, intelligent charging, VVPro Prepra, storage, EDF city platform etc.

2. Strategic plans for implementation in coming years: In 2019, EDF basically focused on three objectives. To get close to their customers, minimize the carbon intensity and to expand internationally. Already serving around 40 million customers, they constantly bring innovation and new technologies to meet their customers’ expectations. EDF was leading the world in reducing the carbon intensity to 57G of CO2/kWh in 2018. In 2018, EDF expanded its position in Africa (Cameroon), South America (Brazil and Chile), and in Asia (China and Vietnam). In long term goals, the French electric utility company are looking forward to deploy new personalized services and smart grids. To double the installed capacity of all the renewable energy and hydropower fleet by 2030. They are also striving to become a significant force in three to five emerging markets. To create sustainability, EDF is targeting 30% of the total market share in the solar industry with a budget of 25 billion Euros.

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Weakness

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Opportunity

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Threats

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Political

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Economic

1. Low GDP growth rate for France and other operational geographies: France and other European countries are some of the countries with the lowest GDP growth rate globally. Where France stands at 1.5%, Italy records the least at 0.8% as per the 2018 estimate. The growth rate also decides the growth of the companies operating in those geographies. EDF is growing on a very slow pace with an increase in the revenue just by 3.7% in 2018. Due to COVID-19 pandemic, the growth rate seems to precipitously drop which may result in the loss of the company. Nuclear energy possesses 64% of the total energy produced by EDF. To overcome this situation, EDF is bringing out new competitive pricing strategies and targeting an annual profit rise in the UK and France. More so, the French government’s 83.7 per cent stake in the company acts as a shield against economic doldrums.

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Social

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Technological

1. Investments in EV-charging infrastructure: Fossil fuel being a non-renewable and carbon emitting source of energy, the government and energy industry find electricity driven vehicles an appropriate alternative. Hence, companies are turning their heads towards Electric vehicles and EV- charging stations. Electric vehicles are seen to be the future of transport. Startups and big power companies see it as a lucrative option as their already spread network will help in monetizing lot of other channels. The EDF Group already leads in deploying the EV-Charging infrastructure across the globe for more than two decades. There are over 50,000 charging points that are operated around the world. In the United States, EDF Renewables Distributed Solutions is leveraging the Group experience to offer EV charging facilities that complement our solar, storage, and energy storage management product offerings. We can optimize the operational and capital costs of stations by implementing solar and storage aids and work on cost leadership strategy.

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Legal

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Environmental

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