CTE’s affiliate, RTE (Réseau de Transport d’Électricité), is responsible for managing the high voltage and very high voltage public electricity transmission network in France. Enedis uses RTE’s network to convey energy to the distribution network.
The key financial indicators published for Taishan (on a 100% basis) are as follows:
| (in millions of euros) | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Non-current assets | Non-current assets 31/12/202112,265 |
Non-current assets 31/12/202011,303 |
| Current assets | Current assets 31/12/2021900 |
Current assets 31/12/2020897 |
| TOTAL ASSETS | TOTAL ASSETS31/12/202113,165 | TOTAL ASSETS31/12/202012,200 |
| Equity | Equity 31/12/20214,036 |
Equity 31/12/20203,744 |
| Non-current liabilities | Non-current liabilities 31/12/20216,680 |
Non-current liabilities 31/12/20206,022 |
| Current liabilities | Current liabilities 31/12/20212,449 |
Current liabilities 31/12/20202,434 |
| TOTAL EQUITY AND LIABILITIES | TOTAL EQUITY AND LIABILITIES31/12/202113,165 | TOTAL EQUITY AND LIABILITIES31/12/202012,200 |
| Sales | Sales 31/12/2021919 |
Sales 31/12/20201,027 |
| Net income | Net income31/12/2021(131) | Net income31/12/2020(41) |
| Dividends paid | Dividends paid 31/12/2021- |
Dividends paid 31/12/2020- |
EDF owns 30% of Taishan Nuclear Power Joint Venture Company Limited (TNPJVC), which was set up to build and operate two EPR nuclear reactors in Taishan, in the province of Guangdong in China. Comprising two 1750MW EPR reactors, Taishan nuclear power plant is the biggest cooperation project between China and France in the energy sector. CGN holds a 51% stake and Guangdong Energy Group a 19% stake.
Following the start of commercial operation by the first reactor on 13 December 2018, the second reactor began commercial operation on 7 September 2019. The first shutdowns for refueling took place in 2020 for Taishan 1 and 2021 for Taishan 2.
On 20 March 2019, the NDRC (National Development and Reform Commission) attributed regulated tariffs to the first three third-generation nuclear projects in China, one of which is Taishan. The tariff attributed to Taishan was set at RMB435/ MWh until the end of 2021, with retroactive effect to the date the first unit was commissioned (13 December 2018). The indexing mechanisms applicable from 2022 were not set out in this decision and are still currently unknown. The NDRC announced that the current tariffs would be extended to 3rd generation plants (including Taishan).
On 14 June 2021, during its second cycle of operation, a build-up of noble gases was detected in the primary circuit of reactor 1 at the Taishan plant. The Chinese ministry for ecology and the environment stated that this was due to a few unsealed fuel rods. Following an initial analysis of the situation, on 30 July 2021 the operator of the Taishan plant decided to shut down reactor 1 to assess the situation in more detail, prevent it from progressing, and take remedial action. Defueling operations were completed on 22 August 2021. Inspections carried out on the fuel assemblies of Taishan reactor 1 following the technical issue encountered during its second operating cycle showed mechanical wear on certain assembly components. This phenomenon has already been encountered in several reactors in the French nuclear fleet. During the first half of 2022, EDF and Framatome contributed to drawing up the documentation to safely restart Taishan reactor 1, and supported TNPJVC for its examination by the Chinese authorities. On 15 August 2022, Taishan reactor 1 was reconnected to the Chinese electricity network after the final inspection by the competent Chinese authorities at the end of July 2022.
Reactor 2 generated energy continuously throughout the first half of 2022, and was then taken offline for maintenance and refuelling in mid -2022. It was successfully reconnected to the network before the end of the year 2022.
Under the TNPJVC shareholder pact, EDF began an “interpretation” arbitration procedure in January 2021 in the Singapore International Chamber of Commerce against its partner CGN. The disagreement concerns the accounting policy for the power plant, particularly its depreciation period. EDF recommends a 60 - year period in line with the plant’s operating lifetime, while CGN considers it should be 41 years, ending at the same time as the entity TNPJVC. This accounting policy could influence the remuneration received by the EDF group through this partnership. EDF filed an initial request for arbitration in November 2021, and CGN responded in March 2022. Hearings have been scheduled for 10-14 October 2023.
A provision has been established in consideration of the persistent uncertainties regarding the level of tariff changes that could threaten the recoverable value of the investment accounted for by the equity method (this provision is included in “Provisions for contingencies related to subsidiaries and investments” in note 17.2).
The other investments held by EDF are included in dedicated assets (see note 15.1.2).
The other investments held by EDF Renewables are mainly located in North America, and to a lesser degree in Europe, China and Brazil.
Other investments in associates and joint ventures principally concern:
In 2022, €(141) million of impairment was booked in respect of investments in associates and joint ventures, principally concerning associates of EDF Renewables (a net amount of €(121) million). €139 million of this impairment (see note 10.8) concerns wind power assets in Texas, due to congestion problems on the electricity network. Some impairment was also booked in respect of unlisted assets held by EDF (EDF Invest) that are included in dedicated assets.
In 2021, €(219) million of impairment was booked in respect of investments in associates and joint ventures, principally concerning associates of EDF Renewables (€(149) million). This impairment primarily relates to wind power assets in the USA following the major weather event of February 2021 in Texas, photovoltaic plants in France due to revision of purchase obligation tariffs introduced for certain facilities by the French Finance Law for 2021 (see note 10.8.2), and an offshore wind farm currently being built off the coast of Scotland, following construction difficulties with the foundations. Some impairment was also booked on unlisted assets owned by EDF (EDF Invest), included in dedicated assets.
