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 French Department for Energy and Climate 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 partners, 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.
| (in millions of euros) | Cumulative Amount at 31/12/2020 | Increases | Decreases | Cumulative Amount at 31/12/2021 |
|---|---|---|---|---|
| (in millions of euros) Software |
Cumulative Amount at 31/12/2020 1,426 |
Increases 318 |
Decreases 64 |
Cumulative Amount at 31/12/2021 1,680 |
| (in millions of euros) Other |
Cumulative Amount at 31/12/2020 140 |
Increases 14 |
Decreases - |
Cumulative Amount at 31/12/2021 154 |
| (in millions of euros)Intangible assets | Cumulative Amount at 31/12/20201,566 | Increases332 | Decreases64 | Cumulative Amount at 31/12/20211,834 |
| (in millions of euros) Land and buildings |
Cumulative Amount at 31/12/2020 7,858 |
Increases 285 |
Decreases 68 |
Cumulative Amount at 31/12/2021 8,075 |
| (in millions of euros) Nuclear power plants * |
Cumulative Amount at 31/12/2020 42,158 |
Increases 3,470 |
Decreases 1,489 |
Cumulative Amount at 31/12/2021 44,139 |
| (in millions of euros) Machinery and plant other than networks |
Cumulative Amount at 31/12/2020 9,308 |
Increases 577 |
Decreases 195 |
Cumulative Amount at 31/12/2021 9,690 |
| (in millions of euros) EDF-owned networks |
Cumulative Amount at 31/12/2020 563 |
Increases 32 |
Decreases 2 |
Cumulative Amount at 31/12/2021 593 |
| (in millions of euros) Other |
Cumulative Amount at 31/12/2020 1,152 |
Increases 139 |
Decreases 74 |
Cumulative Amount at 31/12/2021 1,217 |
| (in millions of euros)Property, plant and equipment owned by EDF | Cumulative Amount at 31/12/202061,039 | Increases4,503 | Decreases1,828 | Cumulative Amount at 31/12/202163,714 |
| (in millions of euros) Land and buildings |
Cumulative Amount at 31/12/2020 6,754 |
Increases 152 |
Decreases 84 |
Cumulative Amount at 31/12/2021 6,822 |
| (in millions of euros) Machinery and plant other than networks |
Cumulative Amount at 31/12/2020 1,104 |
Increases 37 |
Decreases 23 |
Cumulative Amount at 31/12/2021 1,118 |
| (in millions of euros) Concession networks |
Cumulative Amount at 31/12/2020 1,328 |
Increases 89 |
Decreases 25 |
Cumulative Amount at 31/12/2021 1,392 |
| (in millions of euros) Other |
Cumulative Amount at 31/12/2020 11 |
Increases - |
Decreases - |
Cumulative Amount at 31/12/2021 11 |
| (in millions of euros)Property, plant and equipment operated under concessions | Cumulative Amount at 31/12/20209,197 | Increases278 | Decreases132 | Cumulative Amount at 31/12/20219,343 |
| (in millions of euros)Tangible assets in progress | Cumulative Amount at 31/12/202084 | Increases22 | Decreases17 | Cumulative Amount at 31/12/202189 |
| (in millions of euros)TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT | Cumulative Amount at 31/12/202071,886 | Increases5,135 | Decreases2,041 | Cumulative Amount at 31/12/202174,980 |
*The increase in depreciation of nuclear power plants in 2021 is affected by the extension to 50 years of the depreciation period of the 1,300MW series PWR plants at 1 January 2021 (impact of €1,031 million, see note 2.1.1), as that led to a decrease in nuclear provisions (see note 28) with a corresponding adjustment to depreciation of the related assets in the case of provisions backed by assets.
As stated in note 1.2.1, the depreciation period of nuclear power plants currently in operation in France, i.e. thirty-two 900MW reactors, twenty 1,300MW reactors and four 1,450MW reactors, is 50 years for 900MW-series plants (since 1 January 2016) and 1,300MW-series plants (since 1 January 2021), and 40 years for N4-series plants which do not yet fulfil the conditions for a longer depreciation period.
Under France’s multi-year energy programme (PPE, standing for Programmation Pluriannuelle de l’Énergie) for the periods 2019-2028, adopted by decree 2020- 456 of 21 April 2020, twelve French nuclear reactors are to be shut down by 2035, in addition to closure of the two reactors at Fessenheim which took place in the first half of 2020 in accordance with decree 2020-129 of 18 February 2020 terminating the plant’s operating licence. Consequently two 900MW reactors will be shut down in 2027 and 2028 ahead of their fifth 10-year inspection (two others could also be shut down early in 2025-2026 if certain conditions are fulfilled, notably concerning the price of electricity and security of supply). To select the two reactors concerned, priority will be given to shutdowns that minimise the economic and social impact, have the lowest impact on the electricity network, and do not entail closure of an entire site. At the request of the French government, based on these criteria, on 20 January 2020 EDF proposed to examine the possibility of shutting down pairs of reactors at the sites of Blayais, Bugey, Chinon, Cruas, Dampierre, Gravelines and Tricastin. The PPE also stipulates that early reactor shutdowns will be confirmed 3 years prior to implementation. Consequently, notwithstanding the depreciation periods indicated above, adoption of the PPE in April 2020 has led to re-estimation of nuclear provisions since 2020 by reference to various scenarios for the early
shutdowns of two 900MW reactors, resulting in a €29 million increase in nuclear provisions (mainly decommissioning provisions, due to the payment schedules being shortened by a few years). Accelerated depreciation schedules were also estimated based on these scenarios, leading to an increase in the depreciation expense recognised, with no significant impact on EDF’s financial statements.
