Regarding Small Modular Reactors (SMRs), development of the NUWARDTM continued in 2022. NUWARDTM is a third-generation model pressurised water plant consisting of two 170MW units, designed for to be built in large numbers and widely exported. Its main target is as a replacement for fossil-fired plants in the next few decades. Sales will be backed up by a model plant in France, due to start construction by 2030.
The design of the NUWARDTM SMR is being preassessed by the ASN in collaboration with the Czech and Finnish safety authorities SUJB and STUK. The aim of this assessment is to accelerate the granting of international licences for SMRs while also giving a new impetus to regulatory harmonisation.
In December 2022, EDF and Fortum signed a cooperation agreement for joint exploration of development opportunities for SMRs and large nuclear reactors in Finland and Sweden.
In late 2022 the Group set up a dedicated subsidiary to lead the next part of the NUWARDTM project, the basic design phase, which will start in early 2023 and should be completed by the end of 2026. This subsidiary, named Nuward, is fully-owned by the Group. It will continue to receive engineering support from EDF, the CEA, TechnicAtome, Naval Group, Framatome and Tractebel.
A €50 million subsidy granted under the “France 2030” plan was received from the French State in December 2022 (see note 13.5.4), after due notification and authorisation from the European Commission. In his speech at Belfort on 10 February 2022, the French President had announced additional State support of €500 million for the NUWARDTM project.
At 31 December 2022, property, plant and equipment in progress used in generation and owned by the Group mainly comprise:
investments for the Flamanville 3 EPR amounting to €15,245 million, including capitalised interim interest of €3,471 million at 31 December 2022 (€15,014 million at 31 December 2021, including capitalised interim interest of €3,471 million). The amount capitalised for the Flamanville 3 project in the financial statements at 31 December 2022 is €15,472 million, which also includes €221 million (1) for assets that have been commissioned, including €24 million of interim interest.
This capitalised amount of €15,472 million including capitalised interim interest, includes, in addition to the construction cost:
an inventory of spare parts and capitalised amounts totalling €629 million for related projects (notably the initial comprehensive inspection and North Area development),
€854 million of pre-operating expenses and other property, plant and equipment related to the Flamanville project,
and the elimination of internal balances on balance sheet items and margins between Framatome and EDF SA in connection with the Flamanville 3 EPR project (€381 million, essentially consisting of advances and progress payments),
giving a construction cost at historical value of €10,495 million in the consolidated financial statements at 31 December 2022, and a construction cost at completion (excluding interim interest) of €13.2 billion (in 2015 euros).
On 16 December 2022, EDF announced an adjustment to the schedule for the Flamanville 3 project, and the estimated cost to completion was raised from €12.7 billion to €13.2 billion in 2015 euros, excluding interim interest.
The non-recurring additional costs resulting from the necessary repairs to the main secondary circuit welds (see the Group press release of 9 October 2019) are recorded in other income and expenses at the amount of €638 million in 2022 (€573 million in 2021) (see note 7).
The non-recurring additional costs resulting from the adjustment announced on 16 December 2022 principally concern stress-relieving heat treatment for repaired welds, and will also be recorded in other income and expenses;
The balance of property, plant and equipment in progress (excluding assets operated under concessions), i.e. €12,050 million, principally concerns EDF’s existing nuclear plants (75%) in line with the Grand Carénage programme (replacement of major components, particularly steam generators; work in connection with periodic reviews and 10-year inspections), and to a lesser extent (around 13%) EDF Renewables (power plants in development in Europe, North America and emerging countries).
Property, plant and equipment in progress increased by €4,480 million as the level of investment in 2022 is significantly higher than the amount of assets brought into service during the year (see note 10.3).
Since 2014 EDF has been implementing its Grand Carénage industrial refurbishment programme for the French nuclear fleet, designed to enhance reactor safety and extend their operating lifetimes significantly beyond 40 years. The most recent estimate of the programme’s cost for the period 2014-2025, established in late 2021, is €50.2 billion in current euros. This cost factors in the third 10 - year inspections for the Group’s 1300MW reactors, a significant portion of the safety improvements undertaken following lessons learned from the Fukushima incident, including construction and operation of 56 emergency diesel generators, creation of auxiliary feedwater pumps at each nuclear plant in operation, and performance of the fourth 10 - year inspections of the Group’s 900MW reactors.
To continue the investments necessary to operate the Group’s nuclear fleet in complete safety significantly beyond 40 years, on 31 March 2022 EDF’s Board of Directors validated a new roadmap for the Grand Carénage programme running from 2022 to 2028. The cost estimate for this new period is €33 billion in current euros, or an annual expenditure of €4.7 billion. The extended programme will enable the Group to conduct studies and the fourth 10-year inspections of the 1300MW series, conduct preliminary studies for operation of the 900MW reactors beyond 50 years, in accordance with the multi-year energy programme adopted by France in April 2020, and complete the still substantial maintenance and renovation work on major components, so that power plants can remain in operation for more than 50 years. The broader scope of the programme also covers new safety requirements resulting from the generic opinion of France’s Nuclear Safety Authority (ASN) on the fourth 10-year inspections of the 900MW reactors, building on experience from the review with the ASN of the fourth 10-year inspections for 900MW and 1300MW reactors.
The third 10-year inspections of 1300MW reactors are entering their final phase (the last 5 are scheduled for 2023 and 2024). In the 900MW series, ten fourth 10- year inspections have been successfully completed and one is in progress (at Blayais 1). For the 1450MW series, the final second 10-year inspection has been launched at Civaux 2.
Examination with the ASN of the generic phase of the fourth 10-year inspections of the 1300MW series began in 2021 and is continuing. Examination with the ASN of procedures for the 30-year milestone of the 1450MW series, and inspection of the first reactor is expected for 2029.
Additionally, major investments have been made following the lessons of Fukushima: 56 emergency diesel generators have been constructed and put into operation, and every power plant has a permanent or provisional auxiliary feedwater system. Major components (including steam generators and main unit transformers) have also been replaced at many production units.
(1) €341 million in gross value, less €120 million of depreciation.
