Strong market leader position in Europe and the CIS

AREVA’s key figures in the region

In figures

• 195 reactors
• 178 GWe (electrical gigawatts) installed in 2009 (versus 180 GWe in 2008)
• 1,216 TWh (terawatt hours) of nuclear power generated in 2008 (versus 1,209 TWh in 2007), compared to total electricity production in Europe—all sources included—which is estimated at 5,402 TWh (a 1.4% increase over 2007)
• 23%: estimated share of all electricity generated in Europe that comes from nuclear power
• Share of electricity used that is generated by nuclear power in different European countries: France (76%), Belgium (54%), Finland (30%), Germany (28%) and Spain (18%)
• The European Council has set clear targets for renewable energy in 2020:
  • 20% renewable energy in final energy consumption
  • 20% gain in energy efficiency
  • 20% reduction in greenhouse gases from 1990 levels

Prospects for the nuclear power market

There are more and more positive signs in Western Europe, where nuclear power is increasingly being considered a crucial tool in supply security, competitive electricity production and the fight against climate change.

In France, construction continues on the EPR™ reactor in Flamanville, for which AREVA is supplying a nuclear steam supply system. EDF announced that commercial production will begin in 2013. In addition, President Sarkozy announced construction of a second EPR™ reactor in Penly.

Finland plans to build one or more new reactors, while construction on the first EPR™ reactor continues.

In the United Kingdom, the government strongly supports the integration of nuclear power and renewable energy into the country’s energy mix and wants to see nuclear electricity production grow from 15% to 25% by 2025. The Horizon consortium, formed by German utilities RWE and E.ON, aims to construct 6,000 MWe (electrical megawatts) in the country and should decide on the technology it will use by mid 2010. For its part, EDF is preparing to build 4 EPR™ reactors at Hinkley Point and Sizewell, the first of which will enter into service in late 2017. AREVA organized a successful “supplier day” in Birmingham in March 2009 and continues to establish the industrial partnerships necessary for its development in the United Kingdom.

In Italy, EDF and ENEL created a joint company to study the feasibility of constructing at least 4 EPR™ reactors. The government wants to reduce the country’s significant dependence on oil, gas and electricity imports. It plans to produce 25% of the country’s electricity using nuclear energy by 2030, and held a Parliamentary vote on a law concerning the conditions of reintroducing nuclear power generation.

In Eastern Europe, projects could also materialize quickly. The new political situation in Germany and Belgium, makes it possible to consider prolonging the service life of reactors.

Prospects for the renewable energy market

The European market is driven by the European Union’s commitment to develop renewable energy, with an ambitious medium-term target of generating 20% of total energy consumption in 2020 with renewable energy.

To reach this target, each European country has implemented several measures designed to increase interest in different types of renewable energy, including power generation using biomass.

Measures include government requests for proposals that guarantee investors a specific retail price for electricity (e.g., in France), a specific price for electricity generated using biomass (e.g., in Italy), or Green Certificates proving that certain electricity was generated using renewable energy (e.g., in Belgium).

AREVA develops power plants with investors who are eager to penetrate this market, which should increase from 72.3 MToe (metric megatons of oil equivalent) in 2005 to 149 MToe in 2010.

Europe continues to be the primary wind power market, with 60% of the world’s installed capacity. At the end of 2008, wind represented installed power of nearly 1.5 GW (gigawatts). By the end of 2010, power should reach 3-4 GW. With annual growth of 1-3 GW, it should rise to around 10-15 GW by 2015.

Regulatory conditions in Germany favor development of offshore wind parks. More than 30 projects, representing 10 GW of power, have been authorized. The United Kingdom is also a very promising market, with 8 GW expected by late 2014.

France is trying to develop its offshore wind power market quickly, while it continues to advance onshore. Less than 100 wind turbines entered into operation between 2000 and 2003. That figure grew to around 400 in 2006 and 550 in 2007.

In Spain, government assistance is supporting the development of solar energy.