The final decision by the ASN to grant approval for the procedure as a whole, with remotely-controlled robots used to rectify the penetration welds, has been postponed, and is now expected in the first quarter of 2021. The start of VVP penetration weld repairs is subject to this ruling. Work to remove the relevant pipework was nevertheless begun at the end of 2020. This work package is one of those on the critical pathway for finalising the EPR worksite within the target schedule. The qualification of the ARE penetration repair process is underway, with the goal of works taking place at the end of the second half of 2021. This process is an adaptation of the one used for VVP penetration repairs.
The technical investigation into reworking the welds located on the main secondary circuit with quality shortfalls and/or not complying with the requirements of the break preclusion reference document defined by EDF is ongoing. The ASN gave its agreement in July 2020 for the repair of a first batch of five welds, then in November for the repair of a second batch of two welds. The five welds in the first batch were successfully repaired; repairs on the two welds in the second batch were being checked in early 2021.
Beyond that, on 2 June 2020, ASN asked EDF to conduct fresh survey inspections of the Main Primary Circuit (Circuit Primaire Principal, CPP). EDF has drawn up a sample of welds that are representative of all CPP welds for which a second X-ray inspection is to be performed. Work started on 24 February 2021 and is due to continue through to the second half of 2021. This re-inspection programme is being monitored by an ASN-accredited contractor. In a separate development,
on 2 March 2021 EDF declared a significant event to ASN. This concerned the incomplete consideration of the 2006 study referential in respect of the implantation of three nozzles on the main primary circuit (a nozzle allows to connect auxiliary circuits to the primary circuit). EDF and Framatome engineering teams are currently carrying out an instruction to identify, and then propose to ASN, documentary or corrective actions; to date, no impact on the schedule or costs has been identified.
On 9 October 2019(1) the Group submitted a new schedule and a new estimate of construction costs for the Flamanville EPR. In its press release of 9 October 2019, EDF specified that the provisional schedule for implementing the preferred scenario for repairing the penetration welds, subject to the date on which the ASN would approve this scenario, would mean the fuel being loaded at the end of 2022, and a revised construction cost of € 12.4 billion(2) excluding interim interest. Such excluding interim interest as included in the financial statements as of 31 December 2020 amount to € 3 ,291 million. The additional costs with respect to the previous estimate of € 1.5 billion have mostly been booked under “other income and expenses”(3) rather than as investments. For 2020, these additional costs booked as “other income and expenses” amounted to € 397 million.
At the end of 2020, the review of the impact of the first lockdown on the works did not result in any change to the target dates for loading fuel or the construction costs announced in October 2019, but indicated that the project no longer has any margins, either in terms of its schedule or in terms of costs. Meeting these targets is dependent on a number of factors and technical issues, including ASN investigations. The postponement of approval by the ASN of the penetration weld repairs by remotely operated robots is an additional risk to both cost on completion and the works schedule.
The risk regarding the schedule and cost on completion is therefore very high.
If the alternative scenario for penetration weld repairs (not EDF’s preferred scenario) were ultimately to be chosen, this would entail both more additional costs and potentially significant delays.
As works progress, new technical issues emerge and may increase the risk of a postponement. In addition, worksite delays entail a risk of equipment and materials ageing.
Furthermore, other risks may also emerge (see also section 2.2.4 “Operating Performance” – risk factor 4A “Management of large and complex industrial project(including EPR projects)”).
In the UK, EDF Energy owns 66.5% of the construction project of two nuclear reactors at Hinkley Point, with the remaining 33.5% owned by China General Nuclear Power Corporation (CGN). Nuclear New Build (NNB) is the project owner and the New Nuclear Projects and Engineering Department together with Edvance are responsible for the design studies.
EDF is also working, as part of its partnership with CGN, on two nuclear construction projects in the UK: Sizewell C and Bradwell B.
See also section 1.4.5.1.2.5 “Nuclear New Build Division”.
In China, EDF owns 30% of TNPJVC (Taishan Nuclear Power Joint Venture Company Limited), which was set up to build and operate two EPR nuclear reactors in Taishan, in the province of Guangdong in China. CGN holds a 51% stake and
Guandong Energy Group a 19% stake.
Production was 21.5TWh in 2020. It was affected by the drop in consumption due to the Covid-19 crisis and the first scheduled shutdown of unit 1 for its full inspection.
EDF continues to provide technical support to the Taishan project, while simultaneously incorporating feedback from start-up and operation activities for the other EPR projects, mainly FLA3, from successfully completed technical jobs, and from management of the project for the first unit shutdown in the world of an EPR reactor (VC1). In 2020, the main challenge was to ensure the success and industrial management of the full inspection of unit 1. However, after this shutdown,
the unit 1 reactor did not recover its full nominal power. Analysis is underway. In 2021, TNPJVC will carry out a full inspection of unit 2.
The feed-in tariff for the electricity generated by Taishan, in force until the end of 2021, is lower than expected by EDF. Efforts are still under way with the relevant Chinese authorities which will decide on the future price terms (see section 2.2.4 – risk 4A – "Management of large and complex industrial projects (including EPR projects)" – "China").
On 25 January 2019, the French government published the main guidelines of the Multi-year Energy Programme as adopted by decree dated 21 April 2020. In accordance with these directions, the government has asked EDF to prepare an exhaustive file with the nuclear industry by mid-2021 relating to a programme of renewal of nuclear facilities in France. The sector contract signed on 28 January 2019 by the French government and the Nuclear Sector Strategic Committee (CSFN) contains a section on the preparation of the industrial capacity necessary for the performance of a programme of construction of new reactors in France. In order to keep in line with this initiative, EDF has started to prepare economic and industrial proposals based on the EPR 2 technology. EDF will provide the information to enable the French government to define an appropriate regulatory framework for the financing of such an industrial programme.
On 15 April 2016, EDF submitted a safety options file for the “New Model EPR” (NMEPR) project to the French Nuclear Safety Authority.
In early 2018, the permanent experts’ group for nuclear reactors submitted its conclusions on the safety options file. In particular, it found that “most changes in the design used for the NM EPR project take into account the lessons learned from the feedback on Flamanville EPR and on the reactors currently operating as well as lessons learned from the accident at Fukushima Daiichi,” and “is of the opinion that the design options used for the NM EPR project, complemented or modified in the light of the discussions held during the technical examination which have led to a number of commitments, are likely to ensure a safety level at least equivalent to that of the Flamanville 3 EPR reactor and complies with the recommendations of
ASN Guide 22 (on the design of Pressurised Water Reactors).”
(1) See EDF’s press release of 9 October 2019, “Flamanville EPR: EDF favours a scenario to rework the penetration welds on the main secondary circuit using robots and adjusts the schedule and construction cost estimation”.
(2) In 2015 euros.
(3) IAS 16 paragraph 22 on abnormal costs incurred in connection with assets constructed by the Company. These costs will affect the years 2020, 2021, and 2022.
