Areva - Reference Document 2016

06

BUSINESS OVERVIEW

6.1 Markets for nuclear power and renewable energies

They also currently benefit from support mechanisms in several countries: favorable electric rates, production quotas, green certificates, etc. Many countries are committed to expanding the percentage of renewable energies in their production, leading one to assume that such policies will be pursued. In some regions, the competitiveness of certain renewable technologies is already in line with that of more conventional sources of energy, thanks to technology enhancements, economies of scale, the learning curve and the growing size of facilities. The acceleration in market consolidation observed recently in many segments of this market should also contribute to an increase in their competitiveness in the short term. 399 reactors had been built over the 1970 to 1990 period, installed capacity rose by only 22.9% over the 1990 to 2016 period. As the vast programs initiated in North America and Western Europe subsided, the growth of the global reactor fleet picked up in Eastern Europe and Asia. Following the Fukushima accident in Japan caused by a tsunami in March 2011, the installed fleet strengthened the security of cooling water supply in the event of an accident and set up new safety measures to cope with such events. Global installed nuclear generating capacity is estimated at 391 GWe in 2016, slightly more than in 2015. The figure above shows the breakdown of global installed nuclear generating capacity. At December 31, 2016, a total of 449 reactors representing 412 GWe (391 GWe net) were in service in 31 countries, including the world’s largest energy consuming regions. With about 41% of the global fleet, the installed base in Europe and the Commonwealth of Independent States (CIS) is preeminent, ahead of North America, which represents about 26%of the fleet. However, most of themedium-termgrowth potential for nuclear power (2017-2018) is located in Asia (China, South Korea and India) and, to a lesser extent, in the countries of the CIS, as shown in the figure below.

p competitiveness: reduction in fuel consumption and operating costs, high availability (92%) over a 60-year period of operation, thus maximizing power generation; and p environmental protection: reduction in the quantity of used fuel and final waste. RENEWABLE ENERGIES Renewable energies contribute to energy self-sufficiency as regards fossil resources while limiting greenhouse gas emissions. 6.1.1.3.

6.1.2. NUCLEAR ENERGY MARKETS

The first commercial nuclear power programs were launched in the mid-1960s in the United States and in the early 1970s in Europe. In the 1970s, with fears of fossil fuel shortages rising (oil shock), several countries decided to reduce their dependency on imported energy by launching the development of nuclear power programs. The 1970s and 1980s saw a sharp rise in these programs, as shown below. Strong initial growth slowed when the public became concerned after the accidents at Three Mile Island in 1979 and Chernobyl in 1986. As a result, whereas

WORLD INSTALLED NUCLEAR GENERATING CAPACITY (IN NET GWE)

Europe - Western

400

Europe - Central and Eastern Asia - Middle East and South Asia - Far East America - Northern America - Latin Africa

350

300

250

200

150

Net Capacity (GWe)

100

50

0

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

2016 2010

Year

Sources: IAEA PRIS Database.

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2016 AREVA REFERENCE DOCUMENT