EDF’s Nuclear Fleet Objectives and Challenges of an Industry

Eric MAUCORT Deputy Director Nuclear Operations

Nuclear energy: A French Choice

France based its choice of nuclear energy after the two oil crises of 1973 and 1979

to control the costs of electricity and ensure its energy independence

0

100

200

300

400

500

600

1970 1975 1980 1985 1990 1995 2000 2005 2010

TW

h

Source : RTE

Hydro* 12%

Nuclear

75%

Fossil

fuels

Other

REN 3%

Oil crises

1973 1979

EDF is the largest nuclear operator in the world

Nuclear energy: a French choice

A nuclear industry developed: EDF, CEA, AREVA, Alstom… a fabric of small & medium size

companies and industries …

today representing 240,000 jobs

Nuclear energy is the 3rd largest French industrial sector

EDF’s nuclear power generation

Fleet in France – 18 plants, 58 reactors

Fukushima: Legitimate questions

The causes of the accident

A tsunami of a scope unforeseen when the plant was designed,

A crisis organization that did not allow water and electricity to be restored

within 24 hours to cool the damaged reactors

Reactors that did not have the systems to avoid the explosion of hydrogen

and limit releases in the environment

The first lessons from the accident support the French options

The importance of criteria taken into account in design (the origins of the

accidents at Three Mile Island and Tchernobyl were operation-related)

The operator is the only one responsible for safety: Advantage of the EDF

operator/designer model

Necessity for plants to regularly improve their design to incorporate:

- experience feedback from accidents and incidents world-wide

- progress in knowledge

- changes in the environment

… and a desire to go even further

.

Additional Safety Assessments

Safety reassessments have been carried from the outset:

Every 10 years and on experience feedback from incidents (storm of 99, 2003 heat wave, etc. and

accidents (TMI etc.))

Additional Safety Assessments, a complementary approach: Assess the resistance of facilities

beyond design basis

Guarantee the maintenance of vital functions for several hours in extreme situations (total loss of water

and power), …. Then be able to route resources to the site to restore water and electricity

After these additional safety assessments:

EDF (Sept 2011) confirms the good safety level of facilities

Certain modifications planned for a ten-year re-examination will be

accelerated

EDF proposes the implementation of further measures

The ASN (Jan. 2012) considers that the facilities inspected show a

sufficient level of safety.

The ASN considers that their extended operation requires the

reinforcement of their resistance in extreme situations, beyond

the safety margins they already have, as quickly as possible.

It has issued technical recommendations consistent with EDF’s

proposals with stringent lead times.

The ENSREG (European Nuclear Safety Regulators Group)

confirmed the quality of the assessments (April 2012), after

peer reviews

SFEN JG - 24-25 October 2012

A global reality: the need for energy

7 billion inhabitants on earth… 20% do not have access to electricity…

9 billion inhabitants in 2050….

All forms of energy will be necessary… in particular in emerging countries

In the context of the economic crisis …

and global warming.

A possible increase of 80% of electricity consumption

beginning in 2035 and a risk of doubling CO2 emissions

in 2050 (AIE 2011)

Faced with the need for affordable, safe and

low-carbon electricity,

nuclear energy is part of the solution

Electricity in France

• 35% less expensive than in other European countries

• Nearly two times less expensive than in Germany

In France, electricity is affordable…

Tax-inclusive price in €/MWh Private consumers (Eurostat) 300

€ 212/MWh average Euro zone - 17 countries not including France

€70/MWh

142 158

209 208 212

253

0

100

200

France U.K. - Spain Italy Belgium Germany

90

218

299

386

430 450

640

0

100

200

300

400

500

600

700

France Belgique Espagne Italie Allemagne Royaume-Uni Pologne

gC

O2

/KW

h

Average for OECD Europe

CO2 emissions per kWh

related to the production of electricity and heat

Source : IEA CO2 Highlights 2011, statistics cover both electricity and heat in light of the importance of co-generation in some countries.

France

…, carbon-reduced, …

Thanks to nuclear and hydroelectric energy, CO2 emissions

per kWh in France are the lowest in Europe, with Sweden,

5 times less than in Germany per kWh (and 2 times less per

inhabitant all energies combined).

Belgium Spain Italy Germany U.K Poland

…and generates jobs

240,000 jobs* all over the country, including suppliers;

410,000 jobs* when indirect jobs are included;

Even more thanks to the low price of electricity.

3rd largest industrial sector in France, comparable to the aeronautics industry

In France, the nuclear industry provides

(* Source PricewaterhouseCoopers, awaiting figures from the Nuclear

Stream Strategic Committee)

A vision for production in France: Take advantage of the

existing fleet and develop renewable energies

Use the existing nuclear fleet

Benefit from the industrial assets built up over 20 years… and the corresponding jobs

Benefit from a cost of electricity half as expensive as that of any new power generation resource

Preserve France’s leading position among low CO2-emission countries

Remain protected from unpredictable international events

Pursue energy saving measures and energy transfers.. By creating jobs: less electricity per

use, more uses for ‘’carbon-reduced’’ electricity

Develop renewable energies including hydro-electric: Use the right energy at the right time

and lower costs

Build for the future

Allow serene choices: New generation nuclear energy, photovoltaic technologies, electricity storage, CO2 capture etc.

.

The renovation of the existing nuclear fleet

A major overhaul necessary as the 30-year mark

approaches:

Replacement of major components, modernization of I&C,

etc.

Improvement of industrial safety (including the incorporation

of experience feedback from Fukushima).

…allowing a lifetime extension

under the control of the Nuclear Safety Authority (ASN)

(USA : 70 reactors out of 104 obtained a 60-year license)

An opportunity for our industry:

Offer young people 50,000 highly qualified jobs,

in metallurgy, mechanics and electronics.

New hires necessary starting in 2012-2013 (training time)

Long-term jobs (> 20 years)

The renovation of plants:

A major overhaul with a human and financial

investment comparable to construction

A new start for the fleet

A huge challenge to be met by everyone

Initial investments and first

years of operation Maintenance program and

safety step

Renewal

A technical and financial challenge

Mobilize significant financial resources

An industrial challenge

Mobilize partners to respond to the volume and complexity

of work

Find new partners

Provide visibility to anticipate investments and recruiting

An organizational challenge

Organize to handle the volume of activity while retaining control over

quality

A human challenge

Renew the skills of EDF and its industrial partners

The renovation of plants:

A huge challenge to be met by everyone

A future to build:

Contribute to supplying abundant, safety and carbon-reduced nuclear and

renewable energy

France’s nuclear fleet is envied

Its good safety level has been confirmed

Experience feedback from Fukushima

will further improve it

Thank you for your attention