Universal Registration Document 2021

10.3 Property, plant and equipment used in generation and other tangible assets owned by the Group

Accounting principles and methods

Property, plant and equipment is recorded at acquisition or production cost:

the cost of facilities developed in-house includes all labour and materials costs, and all other production costs that can be included in the construction of the asset;
borrowing costs attributable to the financing of an asset incurred during the construction period are included in the value of the asset provided it is a qualifying asset as defined by IAS 23 “Borrowing costs”;
the cost of property, plant and equipment also includes the initial estimate of decommissioning costs. These costs are recognised in assets against the provision recognised to cover these obligations. At the date of commissioning, these assets are measured and recorded in the same way as the corresponding provision (see note 15) ;
decommissioning costs for nuclear generation installations also include last core costs (see note 15).

When some of the decommissioning costs for a plant are to be borne by a partner, the expected reimbursement is recognised as accrued income in the assets. The difference between the provision and the accrued income is recorded in “Property, plant and equipment”, and subsequent payments by the partner are deducted from the accrued income.

The Group capitalises safety expenses incurred as a result of legal and regulatory obligations sanctioning non-compliance by an administrative ban from operation.

Strategic safety spare parts for generation facilities are treated as property, plant and equipment, and depreciated over the residual useful life of the installations.

The costs of operations that are necessary for generation assets to remain in service, and are undertaken at the time of scheduled shutdowns, particularly during major inspections, are capitalised and amortised over a period corresponding to the time elapsing between two inspections.

When a part of an asset has a different useful life from the overall asset’s useful life, it is identified as an asset component and depreciated over a specific period.

Depreciation

Items of property, plant and equipment are depreciated on a straight-line basis over their useful life, defined as the period during which the Group expects to draw future economic benefits from their use.

Depending on each country’s specific regulations and contractual arrangements, the expected useful lives for the main facilities are as follows:

nuclear generation facilities: 40 to 50 years ;
wind farm and photovoltaic facilities: 20 to 25 years ;
fossil-fired power plants (mainly CCGT-Combined Cycle Gas Turbine plants): 25 to 45 years ;
transmission and distribution installations (lines, substations): 20 to 60 years ;
other general plant and machinery: 10 to 20 years.

The net values of property, plant and equipment used in generation and other tangible assets owned by the Group are as follows:

(in millions of euros)	31/12/2020	Increases	Decreases	Translation adjustments	Changes in the scope of consolidation⁽¹⁾	Other movements⁽²⁾	31/12/2021
Land and buildings	Land and buildings 31/12/2020 14,091	Land and buildings Increases 346	Land and buildings Decreases (122)	Land and buildings Translation adjustments 66	Land and buildings Changes in the scope of consolidation⁽¹⁾ (210)	Land and buildings Other movements⁽²⁾ 46	Land and buildings 31/12/2021 14,217
Nuclear power plants	Nuclear power plants 31/12/2020 77,329	Nuclear power plants Increases 3,765	Nuclear power plants Decreases (2,546)	Nuclear power plants Translation adjustments 784	Nuclear power plants Changes in the scope of consolidation⁽¹⁾ -	Nuclear power plants Other movements⁽²⁾ 204	Nuclear power plants 31/12/2021 79,536
Fossil-fired & hydropower plants	Fossil-fired & hydropower plants 31/12/2020 18,166	Fossil-fired & hydropower plants Increases 330	Fossil-fired & hydropower plants Decreases (119)	Fossil-fired & hydropower plants Translation adjustments 179	Fossil-fired & hydropower plants Changes in the scope of consolidation⁽¹⁾ (1,188)	Fossil-fired & hydropower plants Other movements⁽²⁾ (3)	Fossil-fired & hydropower plants 31/12/2021 17,365
Other installations, plant, machinery, equipment & other	Other installations, plant, machinery, equipment & other 31/12/2020 20,620	Other installations, plant, machinery, equipment & other Increases 3,026	Other installations, plant, machinery, equipment & other Decreases (691)	Other installations, plant, machinery, equipment & other Translation adjustments 641	Other installations, plant, machinery, equipment & other Changes in the scope of consolidation⁽¹⁾ (934)	Other installations, plant, machinery, equipment & other Other movements⁽²⁾ (25)	Other installations, plant, machinery, equipment & other 31/12/2021 22,637
Right-of-use assets⁽³⁾	Right-of-use assets⁽³⁾31/12/2020 5,733	Right-of-use assets⁽³⁾Increases 764	Right-of-use assets⁽³⁾Decreases -	Right-of-use assets⁽³⁾Translation adjustments 68	Right-of-use assets⁽³⁾ Changes in the scope of consolidation⁽¹⁾ (88)	Right-of-use assets⁽³⁾Other movements⁽²⁾ (273)	Right-of-use assets⁽³⁾31/12/2021 6,204
Assets in progress ⁽⁴⁾	Assets in progress ⁽⁴⁾31/12/2020 39,616	Assets in progress ⁽⁴⁾Increases 4,637	Assets in progress ⁽⁴⁾Decreases (40)	Assets in progress ⁽⁴⁾Translation adjustments 1,251	Assets in progress ⁽⁴⁾ Changes in the scope of consolidation⁽¹⁾ (33)	Assets in progress ⁽⁴⁾Other movements⁽²⁾ (63)	Assets in progress ⁽⁴⁾31/12/2021 45,368
Gross value	Gross value31/12/2020175,555	Gross valueIncreases12,868	Gross valueDecreases(3,518)	Gross valueTranslation adjustments2,989	Gross value Changes in the scope of consolidation⁽¹⁾(2,453)	Gross valueOther movements⁽²⁾(114)	Gross value31/12/2021185,327
Land and buildings	Land and buildings 31/12/2020 (7,843)	Land and buildings Increases (608)	Land and buildings Decreases 79	Land and buildings Translation adjustments (16)	Land and buildings Changes in the scope of consolidation⁽¹⁾ 71	Land and buildings Other movements⁽²⁾ (13)	Land and buildings 31/12/2021 (8,330)
Nuclear power plants	Nuclear power plants 31/12/2020 (50,353)	Nuclear power plants Increases (3,907)	Nuclear power plants Decreases 2,449	Nuclear power plants Translation adjustments (465)	Nuclear power plants Changes in the scope of consolidation⁽¹⁾ -	Nuclear power plants Other movements⁽²⁾ (1,379)	Nuclear power plants 31/12/2021 (53,655)
Fossil-fired & hydropower plants	Fossil-fired & hydropower plants 31/12/2020 (13,450)	Fossil-fired & hydropower plants Increases (643)	Fossil-fired & hydropower plants Decreases 116	Fossil-fired & hydropower plants Translation adjustments (203)	Fossil-fired & hydropower plants Changes in the scope of consolidation⁽¹⁾ 994	Fossil-fired & hydropower plants Other movements⁽²⁾ 646	Fossil-fired & hydropower plants 31/12/2021 (12,540)
Other installations, plant, machinery, equipment & other	Other installations, plant, machinery, equipment & other 31/12/2020 (9,536)	Other installations, plant, machinery, equipment & other Increases (1,347)	Other installations, plant, machinery, equipment & other Decreases 647	Other installations, plant, machinery, equipment & other Translation adjustments (229)	Other installations, plant, machinery, equipment & other Changes in the scope of consolidation⁽¹⁾ 51	Other installations, plant, machinery, equipment & other Other movements⁽²⁾ 56	Other installations, plant, machinery, equipment & other 31/12/2021 (10,358)
Right-of-use assets ⁽³⁾	Right-of-use assets ⁽³⁾31/12/2020 (1,617)	Right-of-use assets ⁽³⁾Increases (723)	Right-of-use assets ⁽³⁾Decreases -	Right-of-use assets ⁽³⁾Translation adjustments (8)	Right-of-use assets ⁽³⁾ Changes in the scope of consolidation⁽¹⁾ 81	Right-of-use assets ⁽³⁾Other movements⁽²⁾ 208	Right-of-use assets ⁽³⁾31/12/2021 (2,059)
Assets in progress ⁽⁴⁾	Assets in progress ⁽⁴⁾31/12/2020 (156)	Assets in progress ⁽⁴⁾Increases (39)	Assets in progress ⁽⁴⁾Decreases 1	Assets in progress ⁽⁴⁾Translation adjustments (6)	Assets in progress ⁽⁴⁾ Changes in the scope of consolidation⁽¹⁾ 8	Assets in progress ⁽⁴⁾Other movements⁽²⁾ 44	Assets in progress ⁽⁴⁾31/12/2021 (148)
Depreciation and impairment	Depreciation and impairment31/12/2020(82,955)	Depreciation and impairmentIncreases(7,267)	Depreciation and impairmentDecreases3,292	Depreciation and impairmentTranslation adjustments(927)	Depreciation and impairment Changes in the scope of consolidation⁽¹⁾1,205	Depreciation and impairmentOther movements⁽²⁾(438)	Depreciation and impairment31/12/2021(87,090)
NET VALUE	NET VALUE31/12/202092,600	NET VALUEIncreases5,601	NET VALUEDecreases(226)	NET VALUETranslation adjustments2,062	NET VALUE Changes in the scope of consolidation⁽¹⁾(1,248)	NET VALUEOther movements⁽²⁾(552)	NET VALUE31/12/202198,237

(1) Changes in the scope of consolidation essentially relate to EDF Renewables (development and sale of structured assets) and EDF Energy (sale of West Burton B – see note 3.1).

(2) Other movements include the effect on assets associated with provisions and underlying assets of the €495 million change in the real discount rate used to calculate provisions related to EDF’s nuclear generation (see note 15.1).

(3) Right-of-use assets are detailed in note 10.4.

(4) Increases in assets in progress are stated net of the effects of newly-commissioned assets. Assets in progress are detailed in note 10.6.

Universal Registration Document 2021

6. Financial statements

10.3 Property, plant and equipment used in generation and other tangible assets owned by the Group

Accounting principles and methods

Depreciation