Universal Registration Document 2021

• a market price assumption for the forward price for the calendar 2023 of €202/ MWh;
• no renewal of the 2022 exceptional regulatory measures. The volume and price assumption for ARENH is therefore 100TWh and €42/MWh.

EDF emphasises the importance of the uncertainties that weigh on the level of nuclear output in France, on price trends and on the liquidity of the energy markets, particularly for 2022 and 2023. Other risks mentioned in Chapter 2 are likely to affect its ability to achieve its targets.

To date, ambitions are confirmed for 2023. However, in the current situation, the impacts of the Ukrainian conflict and associated geopolitical tensions on all-kind risks are difficult to quantify.

Furthermore, in his speech on 10 February 2022 in Belfort, the President of the French Republic confirmed the growing role of low-carbon electricity in France's ambition to reduce French greenhouse gas emissions by 55% by 2030 compared to 1990 and to achieve carbon neutrality by 2050. The President of the Republic has therefore announced:

• A strong strategy to boost nuclear energy in France, notably with:
• the launch of a construction programme of six new EPR2 reactors and studies for eight additional EPR2, which will mobilise in particular massive public funding of several tens of billions of euros, even if the precise terms of this funding remain to be defined;

• the continued operation of all existing French reactors, except for safety reasons (this extension of the operating period is therefore done without giving up any of the obligations in terms of nuclear safety), and in particular the need for EDF to study the conditions for an extension beyond 50 years, in conjunction with the Nuclear Safety Authority;

• The development of small modular reactors (SMR), as well as innovative reactors allowing to close the fuel cycle and to produce less waste, with an additional intervention of the State up to €500 million for the NUWARD^TM project currently carried out by EDF⁽¹⁾.
• Acceleration in renewable energy development (solar, offshore and onshore wind and hydro).

The scale and variety of the risks the Group is facing, particularly in an extremely volatile market context, with regulatory measures having a significantly negative impact on the Company, affected by the Ukrainian conflict and related geopolitical tensions and by the analyses and works the Group has to perform on the French nuclear fleet in relation to the stress corrosion phenomena recently identified, could have all kinds of consequences, including the arising of new risks or the aggravation of existing risks, likely to make it necessary to take additional measures to achieve the Group’s financial objectives. The Group may not even be able to meet these targets. In the current situation, the impacts of the Ukrainian conflict and associated geopolitical tensions on all-kind risks are difficult to quantify.

(1) It should be noted that this project is currently the subject of a €50m subsidy from the French government as part of the France Recovery Plan (France Relance).