EDF_REGISTRATION_DOCUMENT_2017

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PRESENTATION OF EDF GROUP Description of the Group's activities

Decommissioning of nuclear power plants 1.4.1.1.6 EDF takes full regulatory, financial and technical responsibility for the decommissioning of its plants, the challenge being to demonstrate, through the decommissioning process, its control of the entire life cycle of the means of nuclear power generation. The reference scenario adopted by EDF since 2001 is for decommissioning without a waiting period, consistent with French regulations, which provide for decommissioning “in as short a time as possible on acceptable economic terms and in line with the principles set out in Article L. 1333-2 of the French Public Health Code and Article L. 110-1 II of this Code” (see Article L. 593-25 of the French Environment Code). The regulatory process for decommissioning is governed by the French Environment Code and Decree no. 2007-1557 of 2 November 2007 (see section 1.5.6.2.2 “Specific regulations applicable to basic nuclear facilities”). It is characterised, for a given site, by: a shutdown declaration at least two years prior to the planned shutdown date; ■ a decommissioning request resulting, following examination by the authorities ■ and a public inquiry, in a decree allowing for decommissioning; key progress reviews with the ASN, included in a safety reference system relative ■ to dismantling; finally, once the work has been completed, the declassification of the facility to ■ Concerning power plants that have been shut down (a pressurised water reactor (PWR), Chooz A; a heavy water reactor (HWR), Brennilis; a fast-neutron reactor (FNR), Creys-Malville; and six graphite-gas-moderated reactors (NUGG) in Bugey, Saint-Laurent and Chinon), EDF has chosen to fully decommission them as soon as possible in line with the principles of the French Public Health Code and the French Environment Code while ensuring that the technical risks associated with these activities are managed. The sequencing of the dismantling of the NUGG reactors was thoroughly reviewed at the end of 2015 to reflect the results of the 2013-2015 pre-project studies, which show a significant prolongation of the operations to dismantle the caisson (about 25 years instead of 10 as originally planned), and the need to make the operation less risky by completely dismantling an initial series unit before dismantling the other 5 units. The new dismantling strategy was presented to the ASN’s Audit Council in March 2016 and June 2017. At the ASN's request, a group of independent experts was commissioned to assess the robustness of the proposed dismantling whose chief features were not called into question. The update of the industrial scenario for the dismantling of first generation plants, in particular in regards to the NUGG reactors, had led to an increase in the provision of €590 million on 31 December 2015 (see note 29.1 to the consolidated financial statements at 31 December 2015). The sites remain the property of EDF, and they will remain under its responsibility and monitoring. Given its role as responsible operator, EDF will act as the contracting authority for the decommissioning. The decommissioning of EDF’s nine first-generation units in final shutdown will produce approximately one million tonnes of primary waste materials, of which 80% is standard waste material and none is High-Level Waste. The remaining 20% comprises Very-Low to Intermediate-Level Waste including about 2% Long-Lived Waste requiring the availability of a storage facility for ILW-LL and long-lived LLW-LL (Cigéo deep geological storage plan). Existing means for removal of short-lived VLLW and LILW will be supplemented by: the project to build a packaging and intermediate storage facility for radioactive ■ waste (Installation de conditionnement et d’entreposage des déchets activés – ICEDA), almost completed at the Bugey site. Industrial operations are expected to start in 2019; the LLW-LL storage centre provided for by the Law of 28 June 2006 concerning ■ the long-term sustainable management of radioactive materials and waste. Following an unsuccessful initial site search by ANDRA in 2008, and the sending of a report to the government at end-2012, in 2013 ANDRA restarted the search and in July 2015 submitted a report on the feasibility of a storage facility on a site located in the Soulaines region in France (see section 1.4.1.1.4 “The nuclear fuel cycle and related issues”). Moreover, the new dismantling schedule of the remove it from the legal regime governing basic nuclear facilities. Decommissioning of shut down power plants

Concerning safety improvements required to extend the operating life of certain units beyond 40 years, the ASN indicated that following the meeting of the Expert Committee in April 2015 it would issue an initial position on the major strategic decisions of the safety review relating to the fourth series of ten-year inspections of the 900MW reactors and a final position in 2018-2019 on the “generic” phase of this review, the final authorisation for use beyond 40 years being made on a reactor-by-reactor basis. On 20 April 2016, the ASN sent a letter to EDF in which it defines its expectations to allow a potential operational extension of the 900MW French nuclear reactors. After reviewing the report submitted by EDF presenting its approach and its methodology to extend the use of the 34 reactors in question beyond 40 years, the ASN considered that EDF had adequately responded to safety issues and that its programme did not call for any comments in principle. However, the ASN asked EDF to complete its programme regarding several aspects, including the scope of control programme and the goals relating to improving investigations. At a hearing on 8 November 2017 of the French National Assembly Committee on sustainable development, the President of the ASN confirmed that it would give its generic opinion in 2020 (not 2019) and issue its requirements opposable by and applicable to EDF in 2021. An extension to the life of the current nuclear fleet would enable, whilst respecting the absolute priority of nuclear safety and as part of the multi-year energy programme (see section 1.4.1.1.2 “Operation and technical performance of the nuclear fleet”), better use of the industrial base it represents and the spreading of the commissioning of new plants over time. The decision on 1 January 2016 to extend the useful lives of the 900MW PWR series of power plants (excluding Fessenheim) from 40 to 50 years, enacted in June 2016 once all the relevant technical, economic and governance conditions had been met, forms part of the Group's industrial strategy to extend the operating life of the nuclear fleet in France to beyond 40 years. It is based on the technical capacity of the PWR 900MW fleet facilities to operate for at least 50 years, supported by international benchmarks, as well as by the investments made progressively under the Grand Carénage programme. These investments will enable the PWR 900MW series to reach a level of safety as close as possible to that of the EPR, and one of the highest internationally, after its fourth ten-year inspection (VD4). The content of the VD4 inspections is currently being progressively aligned in regard to the topics selected and commitments made by the Company, as indicated by the ASN’s response regarding the guidelines for the review, addressed to EDF in April 2016. The ASN is expected to give a generic opinion in 2020. EDF is also taking into account additional ASN requests in terms of studies, inspections and works to be completed. Moreover, the extension of the operating life of the 900MW units is compatible with the objectives of the multi-year energy programme, submitted for review on 30 June 2016 and adopted by the Decree published in the Journal officiel on 27 October 2016. The accounting impacts of this decision are explained in section 6.1 “Consolidated financial statements at 31 December 2017”, note 3.1 to the consolidated financial statements for the year ended 31 December 2017. The accounting period of the other series of France’s nuclear fleet (1,300MW and 1,450MW), which are more recent, currently remains at 40 years, because the conditions for an extension have not been met. The subsequent extension of the most recently installed reactors in the French nuclear fleet is at the heart of the Group's industrial strategy. At end 2017, 30 of the 34 900MW units had passed their third ten-year inspections and one 900MW unit (Cruas 2) was to be shut down in preparation for its third ten-year inspection. Of these 11 (Fessenheim 1 & 2, Bugey 2, 4 & 5, Tricastin 1, 2 & 3, Dampierre 1 & 2 and Gravelines 1), completed the exchange of information with the ASN and received its opinions and requirements. For all reactors, EDF has or will carry out the work required by the ASN pursuant to these prescriptions.

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DF I Reference Document 2017