Universal Registration Document 2021

1. The group, its strategy and activities

Nuclear power generation activities
Daya Bay, Ling Ao and Taishan EPR power plants

EDF led the design, construction and commissioning in 1994 of the Daya Bay power plant (two nuclear reactors of 1,000MW each). EDF also assisted the Chinese group China General Nuclear Power Co. (CGN) in the construction of the Ling Ao Phase 1 power plant (two reactors of 1,000MW commissioned in 2002 and 2003), followed by Phase 2 (two additional reactors of 1,000MW commissioned in 2010 and 2011).

EDF is currently providing assistance to the CGN group with the operation of its entire fleet. The performance recorded by these plants since they were commissioned is one of the Group’s main references in China, bearing witness to the cooperation between the two countries.

EDF owns a 30% shareholding in Taishan Nuclear Power Joint Venture Company Ltd. The company’s purpose is to fund, build and operate two EPR nuclear reactors in Taishan (1,750MW each), in the province of Guangdong. TNPJVC operates the power plant. Through this transaction, the Group represents the first foreign investor in Chinese nuclear power generation. Unit 1 came into commercial operation on 13 December 2018, and Unit 2 on 7 September 2019. After their first 18-month fuel cycle, each of the units carried out its first “initial comprehensive inspection” shutdown with reloading.

Feedback on the technical issue encountered on Taishan No. 1 reactor

Monitoring of the Taishan No. 1 reactor gradually revealed an atypical evolution of the radiochemical parameters leading to the suspicion that the fuel assembly rods had become unsealed (1). TNPJVC, which is in charge of the operation, shut down the reactor at the beginning of August, as announced on 30 July 2021, to begin defueling operations, which were completed on 22 August. These operations were carried out in conjunction with Framatome’s technical experts.

According to investigations on the fuel assemblies and the reactor vessel, the loss of sealing of the assembly rods would be due to a deterioration of the rod cladding owing to a mechanical wear phenomenon, located in the lower part of the rod. This mechanical wear would be the result of the rupture of small rod hold-down systems in the assemblies (2).

After an investigation by the competent authorities, these studies could eventually lead to adjustments to the manufacturing process and the implementation of a different technology to hold the rods in place in the assemblies.

Furthermore, the inspections carried out on the assemblies and the inside of the vessel also revealed a localised phenomenon between the assemblies and a component covering the core related to hydraulic exposure. Studies are underway to determine arrangements to reduce interactions between the assemblies and the core barrel.

Concerning the impact of this feedback on the start-up of the Flamanville EPR, see section 1.4.1.1.3.1 “Flamanville 3 EPR project” – “Taishan feedback”.

The analysis concerning the other EPR projects is ongoing.

See also paragraph c2.2 relating to Taishan EPR in risk 4A – Management of large and complex industrial projects (including EPR projects such as HPC, FLA3, Taishan) of section 2.2.4 “Operational performance related risks”.

Production of the Taishan EPR

The net production in 2021 was 18.487TWh. It was affected by the scheduled shutdown of unit 2 (first initial comprehensive inspection) and by the fortuitous shutdown of unit 1 for 5 months in the 2nd half of the year due to the technical issue encountered.

Tariff conditions applicable to nuclear power plants

The Chinese authorities have initiated consultations with the parties concerned with a view to defining the tariff conditions applicable from 2022 onwards to China’s third generation nuclear power plants, in particular the Taishan plant. At the beginning of 2022, the decision has not yet been taken by the authorities (see also section 2.2.4. – 4A – c.2.2 “Taishan EPR”).

Partnership agreements

EDF is developing partnerships with key players in the Chinese nuclear industry, in particular its peers CGN and CNNC, to the benefit of the Group’s business lines. The General Partnership Agreement between EDF and CGN was signed in 2007 and complemented in 2014 by implementation of agreements related to engineering, providers, R&D, and plant operation-maintenance.

The partnership with CGN enabled the initiation of discussions concerning its participation in joint nuclear projects in Great Britain, which resulted in the signature by EDF and CGN of the final contracts for the Hinkley Point C power plant on 29 September 2016. An agreement covering the development of the UK Hualong technology was also signed at that time.

The EDF group has set up a facility based in Beijing and Shenzhen (the Group’s front office for China’s nuclear industry) with the aim of promoting the EDF model of an integrated architect-assembler operator while acting as a flagship for French industry and positioning itself to support the Group’s projects partnership with the Chinese nuclear sector. Experts in this facility are working, in particular, to further promote French codes and standards, as well as the Group’s nuclear safety guidelines. They are also a source of technical exchanges benefiting EDF group’s nuclear activities.

EDF also chairs the Partenariat France Chine Électricité (PFCE), made up of qualified suppliers of EDF which are seeking to develop in China.

In 2010, the Group concluded a partnership framework agreement with China National Nuclear Corporation (CNNC), extended in March 2014 and renewed in 2019, aimed at developing their cooperation along deeper, global lines.

In addition, an agreement between AFCEN (3) and NEA (National Energy Administration) was signed in November 2017. Its objective is to promote mutual recognition of nuclear codes and standards and to establish a basis for cooperation between France and China enabling both countries to operate on the international nuclear market.

The action plan for Franco-Chinese relations backed by the French and Chinese Presidents in November 2019 acclaims the cooperation between French and Chinese industrial groups on the EPR, in particular in Taishan, and calls for ongoing cooperation in China and on third-country markets, as well as continuation of the joint work on projects in the UK (Hinkley Point C, Sizewell C, and Bradwell B) (see also section 1.4.5.1.2.5 “Nuclear New Build busines”).

Framatome

Framatome has had operations in China for over 35 years. It is the designer of units 1 and 2 of the Taishan plants.

Framatome is supplying some equipment and technology building blocks for the Hualong project (RCP, I&C, etc.) along with the fuel.

Framatome operates in China via joint ventures with Dongfang Electric Corporation (FDJV) and China National Nuclear Corporation (CAST) and through its wholly-owned subsidiary Framatome Nuclear Services (FNS).

Coal-fired thermal power generation activities
Shandong Zhonghua Power Company, Ltd. (SZPC)

The EDF group holds 19.6% of SZPC, a company which owns three coal-fired power plants in the Shandong province, commissioned between 1987 and 2004, with a total capacity of 3,060MW. The other shareholders are China Energy Investment Group (4) and the Hong Kong electricity producer CLP. From 1 January 2022, SZPC will start to progressively transfer its generation units to China Energy Investment Group with the Shiheng I&II units (1,260MW), with the total divestment of the asset being completed by 31 December 2028.

Datang Sanmenxia Power Generation Company Ltd. (DSPC)

The EDF group holds 35% of DSPC, the company that owns the Sanmenxia 2 power plant in Henan province, commissioned in 2007, with an installed capacity of 2×600MW, using a technology known as “supercritical coal”. The other shareholders are two Chinese companies, including the Datang Group, which has a majority stake in DSPC.

(1) See EDF’s press release dated 14 June 2021 “Information relating to reactor n°1 of Taishan nuclear power plant” and dated 22 July 2021 “EDF’s communication regarding the Taishan Nuclear Power Plant’s No. 1 reactor”

(2) See the EDF press release dated 12 January 2022: “Update on the Flamanville EPR”.

(3) French Association for the Design, Construction and Operating Supervision of the Equipment for Electronuclear Boilers.

(4) Formerly Guodian group