Can nuclear energy meet the challenges ?

French experience & achievements

Erwan Hinault, AREVA India6th Nuclear Energy ConclaveOctober 14th, 2014

In the past 30 years, nuclear energy has broughtsignificant benefits to France

59 reactors for 66 million inhabitants

75+% of electricity generated by nuclear power

Control of its environmental footprint through CO2 emissions reduction (one of the lowest carbon emission per capita in Europe)

Energy independence and security of supply

Competitive energy price (one of the cheapest tariff in Europe)

400,000 direct, indirect and induced jobs

Exports of nuclear electricity to European countries, including countries which have given up on nuclear

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.2

France doubled its energy independence rate in the 80s’ while implementing its nuclear power generation program

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.3

(1): Energy independence rate =1- net energy imports / gross inland consumption (2): EU refers here to the aggregate of all 28 EU Member States as of 2013Source: Enerdata (2013)

0%

20%

40%

60%

80%

100%

~x2

20102000199019801971

Share of nuclear in generation mix 

Energy independence rate

Civil nuclear program

France’s energy independence rate(1) doubled from ~25% before 1980 to ~50% since 1990France’s energy independence rate(1) doubled from ~25% before 1980 to ~50% since 1990

Nuclear programs contributed to increasing the EU(2) energy independence from 50% to 65%Nuclear programs contributed to increasing the EU(2) energy independence from 50% to 65%

Energy independence vs. nuclear share in power mix(%)

0%

20%

40%

60%

80%

100%

+15%

20102000199019801971

Share of nuclear in generation mix 

Energy independence rate

53% 48%

Energy independence vs. nuclear share in power mix(%)

Energy security Competitiveness Social benefitsEnvironment

1975

1985

Decrease of domestic oil &

gas production

French retail electricity prices are amongst the lowest in Europe for both businesses and households

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.4

EU retail electricity prices for businesses and households stand on average at least 30% below French onesEU retail electricity prices for businesses and households stand on average at least 30% below French ones

9398101

115116117121124131

140142

148149153

188195

250

FinlandBulgariaSwedenFrance

NetherlandsEstonia

HungaryCzech Republic

BelgiumUK

PortugalSpainEU 27

IrelandGermany

ItalyDenmark

+30%

92135140147153158

174196201208210217223229230

292300

+36%

GermanyIreland

Denmark

ItalySpain

BelgiumSwedenPortugal

EU 27Netherlands

UKFinland

Czech RepublicFrance

HungaryEstonia

Bulgaria

European retail prices for households(1), 1st semester 2013(€/MWh, tax included)

European retail prices for industrials(2), 1st semester 2013(€/MWh, tax included)

Energy security Competitiveness Social benefitsEnvironment

(1) Consumption between 2500 and 5000 kWh (‘DC’ consumption band)(2) Consumption between 500 and 2000 MWh (‘IC’ consumption bandSource: Eurostat (2013)

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.5

Nuclear provides France with stable electricity prices thanks to lower dependency on primary resources prices

Electricity tariffs vs. coal and gas prices(1) €/MWh for electricity, €/toe for coal and gas prices

(1): industry prices excluding taxesSource: Enerdata (2013)

0

40

80

120

160

200

240

2000 2002 2004 2006 2008 2010 2012

0

40

80

120

160

200

240

280

320

360

€/toe€/MWh

Coal - UK

Electricity - UK

Electricity - France

Gas - UK

15% 8%

27%

6%

UKFrance

4%

2%

76%

4%

19%

40%

Power generation mix, 2012

Gas

Renewables

Other

Nuclear

Coal

Energy security Competitiveness Social benefitsEnvironment

French oil & gas imports bill levelled at €66bn in 2013, which is above the total French trade deficit

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.6

Electricity is the only positive contributor of the energy bill to the balance of trade, with +€2bnElectricity is the only positive contributor of the energy bill to the balance of trade, with +€2bn

French 2013 energy bill of €66bn is higher than its trade deficitFrench 2013 energy bill of €66bn is higher than its trade deficit

0

-20

-40

-60

-80

20122010200820062004

0

-20

-40

-60

-80

Total

-€66bn

Electricity

+€2bn

Coal & Uranium

-€2bn

Gas

-€15bn

Oil

-€51bn

Evolution of energy bill vs. balance of trade(current € billion, excl. defense exports)

Sources: Ministère de l’Economie et des finances (2014), Douanes françaises (2014)

Energy bill

Trade balance

Breakdown of energy bill by fuel, 2013(current € billion)

NetImports

Energy security Competitiveness Social benefitsEnvironment

France almost fully decarbonized power sectoris unique globally

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.7

454

1,000

500

0

20122010200820062004200220001998199619941992

~x6

China

World

United States

France

Germany

71

Global carbon intensity of the power sector is about 6 times higher than France’sGlobal carbon intensity of the power sector is about 6 times higher than France’s

The French power mix is over 90% low carbon, which is 3 times higher than the global mixThe French power mix is over 90% low carbon, which is 3 times higher than the global mix

Source: Enerdata (2013)

9%

100%

Aus

tral

ia89%

11%

Chi

na

79%

21%

US

70%

30%

Rus

sia

68%

32%

Ger

man

y

67%

33%

Bra

zil

22%

78%

Nor

way

2%

98%

Fra

nce

91%

Wor

ld

70%

30%

Carbon-intensive fuels (oil, gas, coal)

Low-carbon fuels (nuclear and renewables)

Share of low CO2 technologies in the power mix, 2012(% of TWh generated)

Evolution of power sector CO2 emissions, 1993-2011 (kgCO2 / MWh generated)

Energy security Competitiveness Environment Social benefits

-4%-4%

UK

-24%

Net

herla

nds

-6%

Italy

-7%

Fra

nce

-8%

Fin

land

-2%

Den

mar

k

-16%

Aus

tria

-9%

4%

Ger

m.

-24%

5%

France enjoys high ranking for the environmental performance of its economy

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.8

Sources: Enerdata (2013), SoES (2013) Chiffres clés du climat - France et Monde

0

5

10

15

20

7.3

China

5.6

France

4.9

EU

6.8

G8

11.5

World

4.2

+~130%

US

16.1

Germ.

9.0

UK

CO2 emissions per capita 130% higher in G8 countries than in France

CO2 emissions per capita 130% higher in G8 countries than in France

CO2 emissions per capita, 2012(tCO2 per capita)

France exceeded its Kyoto target by reducing its CO2 emissions by 8% over 2008-12France exceeded its Kyoto target by reducing its CO2 emissions by 8% over 2008-12

Achieved reduction of CO2 emissions in % over 2008-2012

Missing reduction of CO2 emissions to meet Kyoto targets

Evolution of CO2 emissions over 2008-2012(% of 2008 level)

Reduction required by Kyoto non-binding targets

Given its already limited CO2 emissions, France was given no additional

reduction target in the Kyoto protocol

12%

21%

0% 0%

+~40%

Energy security Competitiveness Environment Social benefits

The nuclear industry supports 410,000 total jobs in France

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.9

125,000 people are directly employed in France by the nuclear industry125,000 people are directly employed in France by the nuclear industry

Source: CSFN (2012) Cartographie de la situation nucléaire 2010; PwC (2011) Le poids socioéconomique de l’électronucléaire en France

induced jobs

direct jobs

indirect jobs

410,000

115,000

125,000

170,000

2009 Employment in the nuclear sector in France(# employees)

36%

15%Mid Caps

Large Cap

3% Small firms

46%

Utilities

125,000 employees

2009 Direct Employment breakdown by firm size(%)

3%8%

2%29%

32%15%

11%

Nuclear WasteExploitation

Others

Construction

Decomissioning

Nuclear FuelUpstream

2009 Nuclear employment over the value chain(% total French nuclear sector employees)

Energy security Competitiveness Environment Social benefits

French nuclear programKey success factors

A national ambition and a long-term vision to achieve energy security and independence

Strong, consensual and continuous political support since the inception of the program The French government:

Made all strategic decisions

Defined and implemented the necessary industrial policy

Enforced decisions through its control of CEA and EDF

Kept the program on track

Nuclear fleet standardization (PWR: 34 x 900MW ; 20 x 1 300MW ; 4 x 1 500MW)in order to :

Reduce the costs (engineering & construction, operation & maintenance) Fasten the construction pace

1977~1979: Commissioning of 6 reactors 1980~1986: Commissioning of 36 reactors (5 reactors/y) 1987~1993: Commissioning of 12 reactors 1996~1999: Commissioning of 4 reactors

Increase safety levels

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.10

French nuclear programKey success factors

Few strong actors committed to the implementation of the nuclear program driven by central government:

EDF, the utility entrusted with the construction and O&M of the nuclear power plants AREVA (ex-Framatome), the supplier of the Nuclear Island Alstom, the supplier of the Turbine Island CEA, the organization in charge of R&D efforts AREVA (ex-COGEMA), the company entrusted with the construction and O&M of all

nuclear fuel cycle facilities

French government did not provide subsidies or tax credits Program mostly financed by debt Regulated retail prices did not reflect real program costs

Can nuclear energy meet the challenges ? French experience & achievements – 6th Nuclear Energy Conclave - Oct. 14th 2014 p.11

Although capex intensive, a firm, time-bound, committed and inclusive approach can provide safe, clean, cheap and consistent source of power leading to a self-reliant energy state