On 13 January 2022 EDF updated its estimated nuclear output in France for 2022 from 330-360TWh to 300-330TWh, following extension of outages for 5 of EDF’s French nuclear reactors. During preventive maintenance checks on reactor 1 at the Civaux nuclear power plant, scheduled as part of its ten-year inspection, some defects were detected close to the welds on the pipes of the safety injection system (SIS) circuit. Preventive checks were then carried out on the Civaux 2, Chooz 1 and Chooz 2 reactors. They revealed similar defects at the Civaux 2 and Chooz 2 reactors. Checks and expert assessments of the Chooz 1 reactor are still in progress and will continue until a full assessment is completed. Preventive maintenance checks conducted during the ten-year inspection of reactor 1 at the Penly nuclear power plant also found similar defects on the SIS circuit.
Due to performance of checks, and the examination and implementation of technical solutions, EDF extended the maintenance outages of the Civaux 1, Civaux 2, Chooz 1, Chooz 2 and Penly 1 reactors. A control program for the entire nuclear fleet is under development, incorporating experience from the initial analyses as it is gained.
As part of its control programme on the French nuclear fleet, on 7 February 2022 EDF revised its 2022 nuclear output estimate from 300–330TWh to 295–315TWh, and stated that the 2023 French nuclear output estimate, currently 340–370TWh, would be updated as soon as possible.
On 11 February 2022, EDF updated its 2023 French nuclear output estimate from 340-370TWh to 300-330TWh. This estimate takes into account:
The regulatory measures described above, and the new estimates of nuclear power output in France, will have significant effects on EDF’s financial statements from 2022, but have no impact on the financial statements at 31 December 2021.
EDF and GE announced on 10 February 2022 that they had signed an exclusive agreement for EDF to acquire part of GE Steam Power’s nuclear power activities. The proposed transaction would bring together GE’s nuclear steam turbine technology and services expertise with EDF strengthening its commitment to the nuclear power sector, creating an industry-leading global steam turbine equipment and services provider within the EDF group. Today, GE Steam Power’s nuclear steam turbines are installed in half of the world’s nuclear power plants, including all of EDF’s nuclear plants in France.
The proposed transaction includes GE Steam Power’s conventional island equipment for new nuclear power plants—including the world’s most powerful steam turbine in operation, the Arabelle turbine - as well as maintenance and upgrades for existing nuclear power plants. The transaction would also include steam turbine technology to equip EPR (European Pressurized Reactors) and EPR 2 reactor and small modular reactors (SMR).
GE would retain a services-focused Steam Power business and continue to provide best-in-class services for more than 100GW of nuclear turbine islands in the Americas region, and it also retains GE Hitachi Nuclear Energy, a leading lifecycle provider for reactor island which will deploy Canada’s first commercial, grid-scale SMR. GE remains committed to the nuclear sector and continues to invest in next-generation technology, which plays an important role in today’s energy transition.
The nuclear activities and teams in the scope of the proposed transaction are based in about fifteen countries, with nearly 70% of the workforce in France, including at GE Steam Power manufacturing sites like Belfort and La Courneuve.
Financial details of the proposed transaction were not disclosed. The proposed transaction is subject to consultation with employee representatives and other customary closing conditions, including regulatory reviews. The transaction is expected to be finalised in the first half of 2023.
As announced on 13 January 2022, EDF presented an action plan at the Board of Directors’ meeting on 17 February 2022. This plan is designed to reinforce EDF’s balance sheet structure in the context of the events of early 2022. It aims to continue the Group’s strategy, founded on a balanced mix of nuclear and renewable energies, which develops energy efficiency services and brings customers even more innovations.
To finance this strategy, EDF plans to:
The French State, EDF’s largest shareholder, has informed the Board of its position on these two points, which will be covered in a separate communication;
