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EDF Energy – Generation

Lifetime Management of the Existing Nuclear Fleet

Nigel Houlton, Lifetime Programmes Manager UKTI Civil Nuclear Export Showcase – 28 January 2014 Nigel Houlton - Head of Lifetime Programmes

2 EDF Energy, Generation, Lifetime – UKTI Civil Nuclear Export Showcase-28Jan14 – Not Protectively Marked22

EDF Energy’s Nuclear Fleet

• 8 Stations in UK

- 7 AGRs (Commissioned 1976 - 1988)

- 1 PWR (Commissioned 1995)Sizewell

Torness

Hartlepool

Dungeness

Hunterston

Heysham

Hinkley Point

Station Reactor typeNET capacity in

Megawatts (MW)Year

commissionedAge in years

Hunterston B 2 AGRs 890 1976 38Hinkley Point B 2 AGRs 870 1976 38Hartlepool 2 AGRs 1,180 1983 31Heysham 1 2 AGRs 1,160 1983 31Dungeness B 2 AGRs 1,040 1983 31Heysham 2 2 AGRs 1,220 1988 26Torness 2 AGRs 1,190 1988 26Sizewell B 1 PWR 1,191 1995 19

3 EDF Energy, Generation, Lifetime – UKTI Civil Nuclear Export Showcase-28Jan14 – Not Protectively Marked

The Future of Nuclear in the UK • Climate Change Act - UK committed to reduce emissions by 80% by 2050

• The power sector will play a pivotal role- Power industry is expected to be almost completely decarbonised by 2050- Some predict demand for electricity could double over the same period

• Challenge around achieving a sustainable, affordable and secure low carbon supply of electricity for the future

• New nuclear has been recognised as an essential part of the future mix

• Existing nuclear stations will continue to play a key role

4 EDF Energy, Generation, Lifetime – UKTI Civil Nuclear Export Showcase-28Jan14 – Not Protectively Marked

The Case for Life Extension• The existing nuclear fleet provides

- the most affordable, large-scale, low-carbon source of electricity in the UK- work for >300 companies, 90% of our £650m annual spend goes to UK companies

• Pipeline for new nuclear in the UK and potentially abroad - UKs new build ambition will require thousands of additional, mainly highly-skilled

jobs

• Life extensions could play a significant role in both keeping the lights on and keeping us on track for the 2050 targets- Does not change the need or urgency of the new nuclear programme

• A new approach to lifetime planning is needed to support this

5 EDF Energy, Generation, Lifetime – UKTI Civil Nuclear Export Showcase-28Jan14 – Not Protectively Marked

A new approach to lifetime planning• Lifetime Programme implemented to support the strategy

- to ‘seek life extensions for all its nuclear power stations where it is safe and commercially viable’

• The previous approach to lifetime planning was short-term and incremental and until recently there was no clear long-term forecast about the potential of the fleet

• As our stations approach end of life and the UK firms up its pathway for decarbonisation, the need for longer-term planning to realistic dates is emphasised:- Safety- Resources planning- UK infrastructure and Supply Chain planning- Openness and clarity

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What determines technical lifetime?

• Non-replaceable components that degrade through use:- Graphite- Boilers

Graphite core:

AGR boilers:

7 EDF Energy, Generation, Lifetime – UKTI Civil Nuclear Export Showcase-28Jan14 – Not Protectively Marked

Our lifetime expectation• We conducted an extensive review of the potential lifetimes of the AGRs using all available

information and our predictive models of degradation

• This allowed the relevant experts to provide a judgement on the appropriate planning dates for the fleet

• Being keen to ensure these important dates were shared openly, we issued a stock exchange announcement in Feb ’12 with the following extract:

“EDF Energy has completed a further technical review of the potential life limiting plant areas…. is now expecting an average life extension of seven years across the AGR fleet. The strategic target for Sizewell B remains at 20 years.” 1

• In December 2012 we announced a seven year life extension of Hinkley Point B and Hunterston to allow them to operate to 2023 in line with the above expectation. We expect to be operating the AGR’s well into the 2020’s

1The seven year average expectation for the AGRs includes the 5 year extension of Heysham 1 and Hartlepool announced in December 2010 and the 7 year life extension announced in December 2012

8 EDF Energy, Generation, Lifetime – UKTI Civil Nuclear Export Showcase-28Jan14 – Not Protectively Marked

Transformation of Lifetime Management

• Early engagement with:- key supply chain partners- key external stakeholders- our approach has been widely welcomed

• Leading a different approach with the key supply chain enabling activities and infrastructure- Openly sharing- Working together

• We have formed a Strategic Partnership for Lifetime with four key suppliers to our fleet, Amec, Atkins, Cavendish Nuclear and Doosan Power Systems

• We believe our approach to the whole supply chain is creating a strong sense of leadership and shared responsibility to the needs of the country

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Example of Longer Term Collaboration to Underpin Life Extension

DevelopStrategic

Partnership

Through LifeManagement

Strategy

Technical SupportResource Management

Critical Supplier Network

Value Proposition

- Lifetime Support Contract - Long term collaborative working - Incorporate existing support contracts - Support safe, reliable and maintainable DPCS until cessation of generation plus four years

- Demonstration of value add to DPCS through life - Support maintenance of through life strategy - Continuous validation of DPCS until cessation of generation plus four years

- SQEP resource base to support DPCS - Assistance to EDF Energy safety case

- Develop additional suppliers - Act as single management for lower tier key suppliers - Long term contracts

EDF–Energy wishes to significantly extend the operational life of its existing nuclear power stations without having to replace the obsolete Data Processing and Control Systems (DPCS) upon which they rely.

The existing DPCS are vulnerable to:

• Ageing and obsolescence of equipment, workforce and supply chain

• Modern standards and alignment with safety claims“Solutions” not just productsand services to underpin Lifetime Programme

Data Processing and Control Systems – Thales UK

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Conclusion

• Life extension is good for the country and good for EDF Energy

• The previous shorter-term planning approach is no longer sufficient

• Longer-term planning, based on a reasonable expectation of lifetime, is appropriate and our approach has received strong support

• We have reviewed our lifetime potential and updated our guidance to the market around an expectation of an average life extension of 7years for AGRs and 20years for Sizewell B

• We announced a 7 year life extension for Hinkley Point B and Hunterston in December 2012 in line with this expectation

• We are underpinning our planning dates with robust strategies and plans involving our key suppliers and stakeholders