Universal Registration Document 2022

In addition, EDF continues to innovate by developing new business models to assist its customers with their energy transition and put into practice the Group’s carbon neutrality commitments. Innovation, both downstream and upstream, will be an essential factor in covering the required ground, given the speed at which renewables technology is progressing, ranging from storage to electric vehicles and including hydrogen power and digital developments.

Building on its own R&D efforts and its innovation ecosystem developed with its partners, the EDF group selects those innovations that have the potential to accelerate energy transition, while supporting the French industrial fabric as much as possible.

Lastly, the energy transition will only be achieved if it is just, equitable and profitable. The EDF group supports its customers by helping them to use energy more wisely. EDF pays particular attention to the most vulnerable customers and implements actions to reduce energy insecurity (see section 3.3.4 “Energy poverty and social innovation”).

A global leader in the generation of CO₂-neutral electricity

96% of electricity produced by EDF in France is decarbonised as a result of nuclear and renewable energies. EDF is thus playing a leading role in achieving carbon neutrality by 2050. Its actions aim to accelerate the development of renewable energies in addition to its nuclear fleet, for which it guarantees safety, performance and competitiveness.

There is no single solution for ensuring low-carbon electricity, but rather an array of technologies: nuclear power, hydropower, solar power, onshore and offshore wind power, renewable heat, grids, storage and low-carbon thermal generation means, tools for managing flexibility in uses and generation, etc.

EDF’s strategy is consistent with the announcements made by the French President on 10 February 2022 in Belfort. He confirmed the growing role of low-carbon electricity in France’s ambition to reduce French greenhouse gas emissions by 55% by 2030 compared to 1990 and to achieve carbon neutrality by 2050. The President of the Republic therefore announced:

• • A strong strategy to boost nuclear energy in France, including:
    • the launch of a construction programme of 6 new EPR2 reactors and feasibility studies for potentially 8 more, which will mobilise, in particular, massive funding of several tens of billions of euros, even if the precise terms of this funding remain to be defined;
    • the continued operation of all existing French reactors, except for safety reasons (this extension of the operating period is therefore done without giving up any obligations in terms of nuclear safety) and, in particular, the need for EDF to study the conditions for an extension beyond 50 years, in conjunction with the Nuclear Safety Authority;
    • The development of small modular reactors (SMR), as well as innovative reactors allowing to close the fuel cycle and produce less waste, with an additional intervention of the State up to €500 million for the NUWARDTM project currently carried out by EDF.
  • Acceleration in renewable energy development (solar, offshore and onshore wind and hydro).

The EDF group’s aim of achieving very low-carbon production is embodied first and foremost in the accelerated profitable development of renewable energy in France and abroad.

The EDF group is developing renewable electrical power using all types of technology (hydropower, solar power, onshore and offshore wind power, etc.). Renewable energies already account for over one-quarter of the Group’s overall capacity ⁽¹⁾. The EDF group is now the leader in renewable energy in Europe and, in particular, the leading supplier of hydropower in the European Union, with 22.6GW of net installed capacity ⁽²⁾. With regards to other renewable energies, mainly wind power and solar power, the EDF group is also one of the world leaders, with a net installed capacity of 13.2GW. EDF’s goal is to rapidly increase its installed capacity in these sectors in order to achieve installed capacity for renewable energy (including hydropower) of 60GW net by 2030. This would more than double the installed capacity in 2015.

The EDF group is seeking to diversify the different technologies (onshore and offshore wind power, solar power, and hydropower), as well as their geographical distribution. EDF regularly invests in hydropower facilities in order to combine economic, energy and environmental performance, and offers solutions to strengthen hydropower generation.

Today, EDF is a European leader in the aggregation of renewable capacities and flexible solutions. It has set itself the target of tripling the Group’s storage capacity by 2035 as part of its Storage Plan.

This aim of very-low carbon generation is also based on the performance of the nuclear industry,

by guaranteeing industrial expertise, safety, competitiveness, care for the environment, optimised operation of nuclear fleets in France and the United Kingdom, completion of works in progress (Flamanville 3, HPC), and implementation of an innovative fuel cycle strategy.

EDF’s nuclear generation fleet is the only one of its kind in the world. The “Grand Carénage” of the existing fleet in France is a major industrial challenge. The related investment is designed to enable the plants in question to remain in operation beyond 40  years, guaranteeing nuclear safety, performance, and the protection of the environment.

Nuclear power operation does not emit CO₂ ⁽³⁾; it provides baseline production whilst offering strong leverage in terms of management and flexibility to adjust to electricity consumption. As such it is an essential asset for a decarbonised electricity mix by 2050.

With this in mind, EDF is building the Hinkley Point C reactor in the United Kingdom and the Flamanville reactor in France. Two EPRs are in operation in Taishan, China. In Finland, the Olkiluoto 3 EPR reactor built by the AREVA-Siemens consortium reached full power on 30 September 2022, ahead of its planned commercial commissioning in early 2023.

By 2030, the Group is seeking to be engaged in new EPR programmes in France, the United Kingdom, and elsewhere in the world, as well as in the development of a first Small Modular Reactor (SMR) demonstrator in France.

In France, following the French President’s announcement in Belfort in February 2022 about the launch of a construction programme for six nuclear reactors in France, EDF, alongside the nuclear industry, is preparing to realise this ambitious and essential programme. The phase of consultations and dialogue with stakeholders will take place pursuant to a public debate process (from 27 October 2022 to 27 February 2023 for the first pair of EPR2 reactors on the Penly nuclear site in Normandy).

EDF reached an agreement with the British government ⁽⁴⁾ to continue to develop the Sizewell C nuclear power plant project. The British government announced an investment of c.£700  million and will become a 50% shareholder alongside EDF. EDF’s final investment decision remains subject to the achievement of certain key milestones, in particular the ability to raise the necessary financing to complete the project and the deconsolidation of the project from the Group’s balance sheet.

EDF is also preparing for redeployments following final shutdowns. It aims to become the European leader in generation asset decommissioning, and is developing the circular economy.

Supporting energy transition by reducing the carbon footprint requires targeted development of electricity production projects using gas to meet flexibility and energy transition requirements.