EDF & the nuclear renewal : the Flamanville 3 model. Jean-Claude Prenez Director for International Projects EDF Nuclear Engineering Division

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EDF & the nuclear renewal : the Flamanville 3 model Jean-Claude Prenez Director for International Projects EDF Nuclear Engineering Division Varna, 27-29 May 2009

Contents 1.The french context and EDF nuclear fleet 2.The Flamanville 3 EPR project 3. The EDF international nuclear development 2

Key milestones of the French Nuclear Program 1956 : First experimental generation of nuclear electricity 1963 : 1st EDF Nuclear Power Plant Chinon A1(Gas cool reactor model) 1974 : «Prime Minister Mr. Messmer» Electro Nuclear Program 1975 : PWR selection 1976 : Nuclear Waste reprocessing at COGEMA, La Hague UP2 1977 : Connection to the grid of Fessenheim 1, unit of 900 MWe 1978 : Nuclear fuel processing plant : start of Eurodif 1999 : Connection to the grid of Civaux 2, unit of 1.500 Mwe 2004 : Decision to build EPR, unit n 59 2007 : Licence construction of the first EDF EPR (April 10 th ) First concrete poured (December 3 rd ) 3 2009 : Announcement by the Government of a second EPR on Penly site

Nuclear program commissioning 5 units / year on average Gaz cool Reactor PWR 900 MW PWR 1,300 MW FBR 1,200 MW PWR 1,500 MW (N4) 8 7 6 6 4 4 4 3 222 2 2 2 11 1 111 11 1 1 1 1966 70 75 80 85 90 95 2000 4

EDF Nuclear Fleet : the largest capacity in Europe EPR site EPR site Connection to the grid : Unit 1 (Fessenheim 1) : April 1977 Unit 58 (Civaux 2) : December 1999 Gravelines Penly Paluel Flamanville Loire Seine Paris St-Laurent Chinon Nogent Chooz Cattenom Meuse Moselle Fessenheim Dampierre Belleville Rhin Type Power Number Color CP0 CP1-2 900 MW 34 P 4 P 4 1.300 MW 20 N4 1.500 MW 4 EPR 1.600 MW 1 Civaux Le Blayais Garonne Vienne Golfech Bugey St-Alban Rhône Cruas Tricastin Fleet Rating = 63,000 MWe + EPR Staffing : 20,000 employees 5

EDF «Architecte Ensemblier model» Value-chain between design, operation feedback and industry contact to realize industrial control ensures safety, technical and economical performance EDF, thanks to its model, aims at maximizing its value in investment in the entire value-chain Design A/E Engineering EDF is accountable to the Regulatory Body for the nuclear safety issues Operation Industry Equipment suppliers 6

Integration of continuous experience feedback Unique experience interfacing design and operation Cumulative experience New units (development & construction) Technology evolution Improvements Design progress 7

Standardisation and series effect Design and construction Single line of Pressurised Water Reactors with 3 evolving designs (900 MWe, 1300 MWe, N4) Series effect ( reduction of engineering and construction costs, reduction of construction time) Integrated experience feedback from the oldest units to the most recent (1,500 MW) as well as new builds Upgrading Operation experience feedback equivalent to 1 400 reactoryears Upgrading every ten-year following nuclear safety reassessment New design and technological improvements Operation and maintenance Safety specifications and procedures, operation procedures, Maintenance procedures, outage management Training procedures, skills management (including suppliers and sub-contractors, ) 8

Main characteristics of the french PWR: A standardized fleet 900 MW PWR 1300 MW PWR 1500 MW PWR 1600 MW PWR FESSENHEIM BUGEY CP1 CP2 P4 P'4 N4 Twin units Single units EPR General layout Reactor containment Reactor Loops 9

Timeline of Nuclear Generations First Reactors Current Reactors Advanced Reactors Future Systems 1950 1970 1990 2010 2030 2050 2070 2090 Generation I UNGG CHOOZ Generation II REP 900 REP 1300 N4 EPR Generation III Generation IV 10

EDF NPP replacement strategy Scenario 1 Scenario 2 MW 70000 over 20 years without GEN 3 MW 70000 over 30 years with GEN 3 & GEN 4 60000 50000 Extension beyond 40 years 60000 50000 Extension beyond years 40 years 40000 30000 20000 10000 0 Existing fleet 40-year plant life 1975 1980 1985 1990 1995 2000 2005 2010 Generation 4 2015 2020 2025 2030 2035 2040 2045 2050 2055 Extension of average life: 60 years Too many incertainties and risks to rely only on GEN 4 2060 40000 30000 20000 10000 0 1975 1980 Existing fleet 40-year plant life 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 Generation 4 Generation 3 Extension of average life: 50 years Realistic and mastered hypothesis 2040 2045 2050 2055 2060 11

2 Flamanville 3 EPR project

EPR : an evolutionary design + + = EPR Konvoi N4 Solid basis of experience with outstanding performances: Evolutionary design principle Taking into account 77 plants operated in France & in Germany 1350 Years /reactor 13

EPR : a «robust» design 14

The concrete shell Extension of concrete shell 15

Man-Machine Interface 16

The Flamanville 3 EPR project Industrial stakes Maintain EDF s leadership and competency in nuclear development Prepare the renewal of EDF s fleet Technical performance Net base power capacity 1650 MW Service life of 60 years Increased reliability in operation, availability factor 91%, Radioprotection : annual doses divided by 2 : 0.35 HSv/year Environmental improvement Reduction of radioactive waste by 30 %, Reduction of liquid radioactive waste / MWh by 30 % (apart tritium and C14) Reduction of gaseous release / MWh by 30 % to 40 % (apart C14) Economy Investment 4bn 2008 Generation cost of the FOAK 54 2008 /MWh 17

Flamanville 3 EPR project preliminary steps 2004 Selection of Flamanville site and application for the Public Debate according to Environmental law 2005 to April 2006 May 4, 2006 Mid 2006 to end 2007 December 2007 Public Debate (more than 20 meetings all around France) Decision by EDF s Board of Directors to launch the Flamanville 3 project Administrative procedures DAC (application for the realization authorization) April 2007 Awarding of major contracts Site preparation works «First concrete» date of the reactor building basement 18

Project management : EDF as Architect Engineer As an Architect Engineer, EDF s responsibilities involve: Managing the project (quality, schedule, costs, risks, interfaces ) Fronting the French Nuclear Safety Authority (Responsible of the Nuclear License) Deciding how contracts are to be shared out, placing and then managing them Defining technical reference of the plant (general specifications for equipment, for buildings, for the general operation ) Optimizing the ownership cost by including feedback from French nuclear fleet in the design and operation Controlling suppliers detailed studies and equipment manufacturing quality Controlling on-site construction and commissioning tests 19

Role of Flamanville 3 players : project architecture on 3 levels Architect Engineer Level 1 EDF Detailed Studies Level 2 Boiler BNI* BOP & Site auxiliary buildings AREVA SOFINEL EDF ALSTOM 55% EDF, 45% AREVA Engineering contracts Turbine and Generator Building EDF Suppliers Level 3 Supply and construction contracts Bouygues, * BNI : Nuclear Island excluding boiler Study contracts Supply contracts 20

Allocation of main contracts Around 150 contracts - Systematic competition excluding Nuclear Steam Supply System - NSSS - (Areva NP) To date, commitments represent 99% of the total EPR contract amount The 6 largest work contracts account for around 70% of the project budget Prices are indexed (reference index) These contracts include sections at lump sum prices and sections at unit prices Breakdown of total contract amount Works at sea Metal frame Ventilation Simulators Diesels Rolling bridges Paintings Electrical installation Other NSSS 21 Piping Order Control Conventional island Civil work

Main stages in the Flamanville 3 project Decree for Authorisation to build the Flamanville 3 nuclear plant 1 st concrete for the reactor poured onto the Flamanville site (on schedule) Civil Engineering Electro mechanic work (piping, cabling) Commissioning of the plant Connection to the grid April 2007 Dec. 2007 2008 Mid 2011 Mid 2009 2011 2011-2012 2012 22

Priority to safety and quality EDF s engagements about quality The worksite teams are mobilized on safety and quality Increase of the number of Safety Authority controls on design, fabrication and construction activities: 2 inspections on site per month + 2 inspections of design department or fabrication plant per quarter => Inspection results are communicated on SA website. FA3 design deliverables to ASN spread until oct. 2010 Non conformances, quarterly progress report to ASN 23

On-site work progress Completion of preparatory work 1 st concrete for the reactor building poured in early December 2007 as scheduled Completion of the whole raft foundation of the reactor building Erection of the first section of liner and pouring of the containment of the gusset Turbine hall: pouring of the turbine generator pedestal and assemblage of the roof structure Beginning of the electromechanical erection 24

Feedback from the first months of construction Points worth watching: Technical hazards: Volume of steel rebars in civil engineering work Welding of the liner (metal skin) Delay in drilling the well on land for the work of discharging water in the sea Quality of surveillance Regulatory changes: «Nuclear Equipment Under Pressure» regulation, «Malicious Damage» regulation Strengths: Conventional island Assembly underway on schedule Manufacture of large components underway with no significant delay Simulator Delivery of an initial version of the simulator in June 2008 The availability of a simulator less than one year after the 1 st concrete is unprecedented for a new design reactor Continuous improvement in the project monitoring process Strict supervision on the nuclear expertise of companies Better anticipation Improving quality of the surveillance of the site activities 25

Confirmation of the target of reactor start-up in 2012 Control of project hazards encountered so far Confirmation of delivery dates for major equipment by the main suppliers Implementation of an appropriate organizational structure aimed at anticipating the most probable difficulties 26

Flamanville 3 : february 2009 General view 27

Flamanville 3 : february 2009 - Reactor building 28

Flamanville 3 : march 2009 Electro mechanical works in the reactor building 29

Flamanville 3 : march 2009 Turbine hall 30

Flamanville 3 : february 2009 pumping station 31

Flamanville 3 : march 2009 : tunnel digger assembly room for the undersea discharging gallery drilling 32

SIMULATOR - NOVEMBER 17, 2008 33

3 EDF International Nuclear development

EDF s strategy EDF intends to invest and play an industrial role in the nuclear energy renaissance Investment, construction and operation of EPR- type nuclear power plants around the world : operational know-how engineering expertise through its oversight of major projects longstanding international partnerships Duplication of the Flamanville 3 reference Use of the series effect to develop an EPR fleet 35

EDF s Fundamental Criteria to commit itself on a New Nuclear Build Abroad 1. Countries choosing to develop nuclear energy in the short-term 2. Countries where EDF is welcome 3. Countries with favorable conditions for investors in nuclear energy Comprehensive legal framework Effective regulatory system Long term management policy of nuclear materials and radioactive waste Public opinion in favor 4. Projects based on proven reactor design 5. Local partners with good track record in building and operating electricity generation 6. Financial criteria meeting the Group s financial targets and risk policy 36

Four selected countries for EDF investment in the nuclear renaissance United Kingdom : a joint application for GDA with AREVA Plans for 4 EPR (1st commissioning 2017) United States : a joint venture with Constellation Energy for the joint development of EPR-type nuclear power plants UNE COLA application to NRC March 2007 for Calvert Cliff China : Over 20 years of strong cooperation in all areas of nuclear power generation a joint venture with CGNPC for 2 EPR in Taishan Italy : an agreement with ENEL (consortium 50/50) for development JV of a fleet of at least 4 EPR 37

Thank you for your attention 38