ANNUAL RESULTS 2020
Strategy and
investments
ESG
Renewables
Regulated
France Generation and
supply
Consolidated sales
Operational data and markets
SIZEWELL C
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KEY ELEMENTS
Project of new nuclear power station at
Sizewell on the Suffolk coast
Two UK European Pressurised Reactor
(EPR) for a total generating capacity of
3.2GW
Power supply to 6 million homes and
electricity generation for 60 years
Replication strategy from Hinkley Point C,
which should enable costs to be driven
down thanks to a decrease in construction
costs combined with lower risks. The
project would be based on EPR
technology, capitalising on lessons learned
and experience from Hinkley Point C
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GOVERNANCE
During the development phase preceding the FID (1), EDF's stake is
80% and CGN's is 20%. EDF has planned to pre-finance
development up to its share of an initial budget of £458M. The FID is
likely to be made by mid-2022. In the event of a postponement of the
decision, an agreement should be reached on the financing of the
additional costs incurred
The project is based on the assumption that third party investors will
invest a very large majority and EDF plans, at the date of the FID, to
become a very minority shareholder, with corresponding limited rights
and to deconsolidate the project from the Group's financial
statements (including in the calculation of the economic indebtedness
by the rating agencies). At this stage, it is not certain that the Group
will achieve this objective
Securing the appropriate risk-sharing mechanism and ultimately the
corresponding financing structure ahead of the FID is therefore key
for the project, the UK Government and the current shareholders.
EDF's ability to make a FID on Sizewell C and to participate in the
financing of this project beyond the development phase could depend
on the operational control of the Hinkley Point C project, on the
existence of an appropriate regulatory and financing framework, and
on the sufficient availability of investors and funders interested in the
project. To date, none of these conditions are guaranteed
Failure to obtain the appropriate financing framework and appropriate
regulatory approval could lead the Group not to make an investment
decision or to make a decision under less than optimal conditions
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PROGRESS
The Development Consent Order (DCO)
examination started in April 2021. A decision is
expected by April 2022 from the UK's Secretary
of State. The development consent order
document includes a very ambitious target of
savings on construction costs to take into
consideration the fact that Sizewell C is a
second of a kind
UK government announcements in Q4 2020 to
prepare for carbon neutrality in 2050 with the
aim of taking a final investment decision on at
least one large scale nuclear power station
project by the end of Parliament period (2024)
The UK government has stated that it will enter
into talks with EDF on the funding of Sizewell C
project as it reviews options for achieving this
ambition
The UK government also stated that it
continues to review financing options for new
nuclear power, including the regulated asset
base (RAB) nuclear financing model
Moreover, given the scale of the financial
challenge, the UK government could consider
participating in financing during construction,
provided there is a benefit for consumers and
taxpayers
(1) Final Investment Decision
EDF
SALES FIRST QUARTER 2021
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