EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Balance Sheet

28.2

PROVISION FOR WASTE REMOVAL AND CONDITIONING - PROVISION FOR LONG-TERM RADIOACTIVE WASTE MANAGEMENT

Provisions for long-term radioactive waste management These provisions concern future expenses for: removal and storage of radioactive waste resulting from decommissioning of ■ nuclear installations operated by EDF; removal and storage of radioactive waste packages resulting from spent fuel ■ processing; direct storage, where relevant, of spent fuel that cannot be recycled in existing ■ installations: specifically plutonium fuel (MOX) or uranium fuel derived from enriched processing, and fuel from Creys-Malville and Brennilis; EDF’s share of the costs of studies, construction, operation and maintenance, ■ shutdown and surveillance of existing and future storage centres. The volumes of waste concerned by provisions include existing packages of waste and all waste to be conditioned, resulting from plant decommissioning or spent fuel processing at La Hague (comprising all fuel in reactors at 31 December, irradiated or otherwise). These volumes are regularly reviewed, in keeping with the data declared for the purposes of the national waste inventory undertaken by ANDRA.

Provisions for waste removal and conditioning The provisions for waste removal and conditioning are reported separately from 1 January 2017. They cover the following future expenses for radioactive waste resulting from operations or decommissioning (apart from spent fuel): characterisation and conditioning of waste; ■ interim storage of waste. ■

The provisions for long-term radioactive waste management break down as follows:

31/12/2017

31/12/2016

(in millions of euros)

Very low-level and low and medium-level waste

1,161

1,066

6.

Long-lived low-level waste

265

256

Long-lived medium and high-level waste (1)

7,388 8,814

7,644

PROVISIONS FOR LONG-TERM RADIOACTIVE WASTE MANAGEMENT 8,966 At 31 December 2016, provisions for long-lived medium and high-level waste included €581 million of provisions for waste removal and conditioning, which are (1) now reported separately.

Very low-level and low and medium-level waste Very low-level waste mainly comes from nuclear plant decommissioning, and generally takes the form of rubble (concrete, scrap metal, insulating materials and piping). This type of waste is stored at surface level at the Morvilliers storage centre managed by ANDRA. Low and medium-level waste comes from nuclear facilities (gloves, filters, resins). This type of waste is stored at surface level at the Soulaines storage centre managed by ANDRA. The cost of removing and storing short-lived waste (very low-level and low and medium-level) is assessed on the basis of current contracts with transporters and contracts with ANDRA for operation of the existing storage centres. Long-lived low-level waste Long-lived low-level waste belonging to EDF essentially consists of graphite waste from the ongoing decommissioning of the former UNGG (natural uranium graphite gas-cooled) reactors. As this waste has a long lifetime, but is lower-level than long-lived medium and high-level waste, specific subsurface storage requirements apply under the French Law of 28 June 2006. Following the initial geological investigations, in July 2015 ANDRA remitted a report on the proposed storage centre for long-lived low-level waste on a site located in the Soulaines region (Aube) in France. This report was submitted to the ASN for its opinion. Uncertainties remain about the site’s capacity to accommodate all of the waste included in the baseline inventory of the long-lived low-level waste storage facility. Further studies are planned under the 2016-2018 National Plan for the Management of Radioactive Materials and Waste, concerning both the feasibility of this storage centre and the search for additional waste management solutions. A general industrial plan for management of all long-lived low-level radioactive waste is also to be remitted by the end of 2019. Long-lived medium and high-level waste Long-lived medium and high-level waste essentially comes from processing of spent fuel, and to a lesser extent waste resulting from nuclear plant decommissioning (metallic components that have been inside the reactor).

The French Law of 28 June 2006 requires reversible storage in deep geological layers for this type of waste. The provision established for long-lived medium and high-level waste is the largest component of provisions for long-term radioactive waste management. Until June 2015 the gross value and disbursement schedules for forecast expenses were based on a scenario of industrial geological waste storage, following conclusions presented in the first half of 2005 by a working group formed under supervision of the State involving representatives of the administrations concerned, ANDRA and the producers of waste (EDF, AREVA (now Orano), CEA). EDF applied a reasonable approach to information supplied by this working group, leading to a benchmark cost, for storage of waste from all producers, of €14.1 billion under the economic conditions of 2003 (€20.8 billion under 2011 economic conditions). In 2012 ANDRA carried out preliminary conceptional studies for the Cigéo geological storage project, after discussing the technical optimisations proposed by the producers of waste. On this basis, ANDRA drew up figures which, in compliance with the Law of 28 June 2006, were subjected to a consultation process with waste producers started in late 2014 by the French Department for Energy and Climate (Direction générale de l’énergie et du climat or DGEC). In April 2015 EDF and the other producers sent the DGEC their comments on ANDRA’s report and a joint estimation of the target Cigéo storage cost due to divergent approaches. All this information was included, together with the ASN’s opinion, in a report submitted to the Minister for Ecology, Sustainable Development and Energy. On 15 January 2016 the Ministry of Ecology, Sustainable Development and Energy issued a Ministerial Order setting the target cost for the Cigéo storage project at €25 billion under 2011 economic conditions. The cost as defined constitutes an objective to be met by ANDRA, in compliance with safety standards set by the ASN, working in close liaison with the operators of nuclear installations. Publication of this Order entailed an €820 million adjustment to the provision shown in EDF’s financial statements at 31 December 2015. The cost of the Cigéo project defined in the Order has replaced the estimated benchmark cost of €20.8 billion previously used by EDF for its financial statements.

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EDF I Reference Document 2017