6. Financial statements

The ongoing operations concern plants that were constructed and operated before the current nuclear fleet (“first-generation” plants), and the Superphenix plant and Irradiated Materials Workshop. These operations cover four different technologies: a heavy water reactor (Brennilis), a sodium-cooled fast-neutron reactor (the Superphenix at Creys-Malville), natural uranium graphite gas-cooled (UNGG) reactors (at Chinon, Saint Laurent and Bugey) and a pressurised water reactor (PWR at Chooz). Each of them is a first for EDF, and apart from the PWR, they concern reactor technologies for which there is little or no international experience. They therefore require development of new methods and technologies that are riskier than technologies for which feedback already exists. Decommissioning of the Chooz PWR is benefiting from past experience (essentially in the US and limited), but the reactor has the specificity of being located in a cave, making this a unique operation, generating experience that is not immediately transposable and involves specific risks.

The experience gained from dismantling the Chooz PWR will nonetheless make the studies and estimates of future decommissioning of the nuclear fleet currently in operation (“second-generation” plants) as robust as possible. But so far, neither EDF nor any other operator has begun a decommissioning programme on a scale comparable to the current PWR fleet, and as a result the estimates include both opportunities and risks, especially the risks associated with the scale effect.

The decommissioning provisions cover future decommissioning expenses as described above (excluding the cost of removing and storing waste, which is covered by the provisions for long-term waste management).

The preliminary dismantling plan and the orientations for the fourth periodic review of Fessenheim (RP4) were sent to the ASN in July 2018. The Consolidated Preliminary Plan (avant-projet consolidé or APC) was finalised in late 2018, with more in-depth studies for derisking of the Summary Preliminary Plan (avant-projet sommaire or APS). Studies in 2019 focused on preparing the dismantling plan, with the objective of filing the dismantling and RP4 documents in mid-2020.

On 30 September 2019 EDF sent the Minister for the Ecological and Inclusive Transition and the ASN its application requesting approval for the termination of operations, and a declaration of the permanent shutdown of both reactors at Fessenheim nuclear power plant, scheduled for 22 February 2020 for reactor 1 and 30 June 2020 for reactor 2 (see note 2.1.4).

Details of changes in decommissioning provisions for nuclear power plants are as follows:



IncreasesDecreasesOther Changes
(in millions of euros)2018OperatingFinancialUtilisation
2019
Provisions for decommissioning of nuclear plants in operation

Provisions for decommissioning of nuclear plants in operation


12,480

Provisions for decommissioning of nuclear plants in operation

Increases

2

Provisions for decommissioning of nuclear plants in operation

Decreases

488

Provisions for decommissioning of nuclear plants in operation

Other Changes

(20)

Provisions for decommissioning of nuclear plants in operation


294

13,244
Provisions for decommissioning of shut-down nuclear plants

Provisions for decommissioning of shut-down nuclear plants


3,505

Provisions for decommissioning of shut-down nuclear plants

Increases

103

Provisions for decommissioning of shut-down nuclear plants

Decreases

206

Provisions for decommissioning of shut-down nuclear plants

Other Changes

(121)

Provisions for decommissioning of shut-down nuclear plants


-

3,693
TOTAL PROVISIONS FOR NUCLEAR PLANT DECOMMISSIONINGTOTAL PROVISIONS FOR NUCLEAR PLANT DECOMMISSIONING
15,985
TOTAL PROVISIONS FOR NUCLEAR PLANT DECOMMISSIONINGIncreases105TOTAL PROVISIONS FOR NUCLEAR PLANT DECOMMISSIONINGDecreases694TOTAL PROVISIONS FOR NUCLEAR PLANT DECOMMISSIONINGOther Changes(141)TOTAL PROVISIONS FOR NUCLEAR PLANT DECOMMISSIONING
294
16,937

(1) Cost of unwinding the discount and effects of changes in the net discount rate for provisions without related assets.
(2) These are changes of estimate with a corresponding adjustment to property, plant and equipment (see note 1.15.1) or reclassifications of provisions.

For nuclear power plants currently in operation (PWR pressurized water reactor plants with 900MW, 1,300MW and N4 reactors)

Until 2013, provisions were estimated based on a 1991 study by the French Ministry of Trade and Industry, which set an estimated benchmark cost for decommissioning expressed in €/MW, confirming the assumptions defined in 1979 by the PEON commission. These estimates had been confirmed from 2009 by a detailed study of decommissioning costs conducted by EDF at the representative site of Dampierre (four 900MW units), and its results were corroborated by an intercomparison with the study carried out by consultants La Guardia, based mainly on the Maine Yankee reactor in the US.

In 2014 the Dampierre study was reviewed by EDF to make sure that the previous calculations were still valid in view of recent developments and experience, both internationally and internally. For this revision, the decommissioning provisions for plants in operation were based on costs resulting from the Dampierre study, in order to incorporate best estimates and feedback from inside and outside France. This change of estimate had no significant impact on the level of provisions at 31 December 2014.

Between June 2014 and July 2015, an audit of dismantling costs for EDF’s nuclear fleet currently in operation was conducted by specialised consulting firms, at the request of the French Department for Energy and Climate (Direction générale de l’énergie et du climat or DGEC). On 15 January 2016 the DGEC published a summary of the audit report. It stated that although estimating the cost of decommissioning nuclear reactors is a demanding exercise due to relatively limited past experience, the prospects of changes in techniques, and the distant timing of the expenditure, overall, the audit confirmed EDF’s estimate of decommissioning costs for its nuclear fleet currently in operation. The DGEC also made a number of recommendations to EDF following this audit.

In 2016, EDF revised the decommissioning estimate, in order to incorporate the audit recommendations and past experience gained from dismantling operations for first-generation reactors (particularly Chooz A).

A detailed analytical approach was used to revise this estimate, identifying all costs for the engineering, construction work, operation and waste processing involved in future decommissioning of reactors currently in operation. This led to figures based on detailed timetables for plant decommissioning. The approach adopted made it possible to explore more thoroughly the assessment of costs specific to the initial units of each series, estimated for each series based on transposition coefficients applied to the baseline costs for the initial 900MW unit, and the series and mutualisation effects, as these costs and effects are inherent to the fleet’s size and configuration.

The natures of the principal mutualisation and series effects used to arrive at the estimate are explained below.

There are several types of mutualisation effects:

  • some of them relate to the fact that several reactors may share common buildings and facilities on the same site, and these buildings and facilities will not have to be decommissioned twice. Structurally, decommissioning a pair of reactors on the same site costs less than decommissioning two standalone reactors on two different sites. In France, unlike other countries, there are no single reactors but sites with two or four, and in one case six reactors;
  • certain costs are no higher when 2 or 4 reactors are decommissioned on the same site. This is usually the case for surveillance costs and cost of maintaining safe operating conditions on the site;
  • waste processing in centralised facilities (for example for dismantling major components) costs less than having several waste processing facilities at the decommissioning location.