| (in millions of euros) | 2021 | 2020 |
|---|---|---|
| Intangible assets | Intangible assets 2021 1,793 |
Intangible assets 2020 1,581 |
| Property, plant and equipment used in generation and other tangible assets owned by the Group | Property, plant and equipment used in generation and other tangible assets owned by the Group 2021 45,220 |
Property, plant and equipment used in generation and other tangible assets owned by the Group 2020 39,460 |
| Property, plant and equipment operated under concessions other than French public electricity distribution concessions | Property, plant and equipment operated under concessions other than French public electricity distribution concessions 2021 621 |
Property, plant and equipment operated under concessions other than French public electricity distribution concessions 2020 574 |
| TOTAL ASSETS IN PROGRESS | TOTAL ASSETS IN PROGRESS 2021 47,634 |
TOTAL ASSETS IN PROGRESS 2020 41,615 |
At 31 December 2021, intangible assets in progress include notably studies for the EPR 2 and SMR projects, amounting respectively to €761 million (€577 million at 31 December 2020), and €69 million.
The EPR 2 project concerns a new pressurised water nuclear reactor that meets the objectives for third-generation reactor safety, aiming to incorporate design, construction and commissioning experience acquired from EPR reactors and the nuclear reactors currently in operation.
On 16 July 2019, the ASN issued an opinion that the safety levels of EDF’s key design options for its EPR 2 were satisfactory. It stated that “the general safety objectives, the safety baseline requirements and the main design options are on the whole satisfactory”.
The EPR 2 will also offer superior operating performance in terms of power (1650MW compared to 1450MW for the most powerful current reactor), output, availability and manoeuvrability.
The draft PPE published on 25 January 2019 by the Ministry for the Ecological and Inclusive Transition stated that the Government, together with the nuclear industry, would conduct a programme of work by mid-2021 to examine the questions of the cost of new nuclear energy production and its advantages and disadvantages in relation to other low-carbon generation methods, the possible financing models, the project management modalities for new reactor projects and public consultation, and matters relating to the management of waste generated by the potential new nuclear fleet, and that based on this information and depending on developments in the energy situation, the Government would make a decision regarding the suitability of launching a renewal programme for nuclear installations.
While awaiting a decision about the EPR 2, EDF was authorised by its Board of Directors on 16 December 2020 to continue the project until the end of 2022, with a cost budget of around €1 billion.
In 2021, EDF, working with the French authorities, finalised its contribution to the government-supervised work programme: formal provision of feedback from construction of the first EPRs, and demonstration of the French nuclear sector’s ability to handle an industrial programme to build 3 pairs of reactors (using an adjusted EPR model incorporating feedback from the earliest EPR projects in France and internationally).
The analysis conducted covered justification of the need, an action plan to mobilise actors in the nuclear sector, estimation of anticipated costs, analysis of the possible options for the programme’s leadership and funding (and their consequences as regards regulation and changes in the legal framework), identification of locations, consideration of questions relating to management of the waste produced by a new nuclear fleet and action to be taken, including interaction with the European Commission and public consultation.
The DGEC audited this programme in the summer of 2021 and validated the methods used to estimate the schedule and costs.
The French President declared in a speech in November 2021 that France would restart a nuclear programme and build new reactors on French soil. On 10 February 2022 during a visit to Belfort in eastern France, he announced the launch of a programme to construct 6 EPR 2 reactors by 2035, and begin studies for an additional 8 EPR 2 reactors by 2050. No investment decision has yet been taken, and the programme will require appropriate regulation and funding arrangements.
Regarding Small Modular Reactors (SMRs), development of the NUWARDTM, a 340MW pressurised water plant with two 170MW units, continued in 2021. Power plants in this bracket are largely designed for the export market, to contribute to the widespread replacement of the oldest fossil-fired plants in the next few decades. These export sales will be backed up by a model plant in France, due to start construction by 2030.
Development, industrial production and marketing of the NUWARD will be supervised by EDF with engineering support from the CEA, Naval Group, and TechnicAtome. Given its export target, this development is the subject of an investigation into the viability of cooperation with one or more international partner, particularly European partners.
The conceptual design phase is currently in process, benefiting from public funding of €50 million granted by the French State as part of the “France Relance” national recovery plan.
At 31 December 2021, property, plant and equipment in progress used in generation and owned by the Group mainly comprise:
This capitalised amount of €15,251 million including capitalised interim interest, includes, in addition to the construction cost:
giving a construction cost at historical value of €10,445 million in the consolidated financial statements at 31 December 2021, and a construction cost at completion (excluding interim interest) of €12.7 billion (in 2015 euros).
This follows the Group’s announcement on 12 January 2022 that the schedule for the Flamanville 3 project was being adjusted and the estimated completion cost raised from €12.4 billion to €12.7 billion (in 2015 euros, excluding interim interest).
In its report of July 2020 on EPR technology, the French Court of Auditors (Cour des comptes) stated that by its calculations, in addition to the construction cost of €12.4 billion (in 2015 euros) announced by EDF in its press release of 9 October 2019, there would be further costs that could reach €6.7 billion (in 2015 euros), including €4.2 billion of interest expenses. As stated above, at 31 December 2021 the capitalised interest amounts to €3.5 billion and other capitalised project costs amount to €1.3 billion.
