EDF submits to the Indian nuclear operator NPCIL the French binding techno-commercial offer to build six EPRs at the Jaitapur site
On 22 April 2021, EDF submitted to NPCIL the French binding techno-commercial offer to supply engineering studies and equipment for the construction of six (6) EPR reactors at the Jaitapur site, Maharashtra, India. This major milestone for EDF, its partners and the French nuclear industry will enable discussions aimed at converging towards a binding framework agreement in the coming months.
The offer is the culmination of the work carried out jointly with NPCIL further to the signature of the Industrial Way Forward Agreement on 10 March 2018 in Delhi in the presence of the Prime Minister of the Republic of India and of the President of the French Republic, and to the submission of EDF's non-binding proposal at the end of 2018. On that basis, the offer from EDF and its partners includes:
- the detailed technical configuration of the reactors, taking into account the information provided by NPCIL on the Jaitapur site conditions and the joint comprehensive work performed by EDF and NPCIL;
- the associated comprehensive commercial terms and conditions for the supply of engineering studies and equipment for six (6) EPR reactors.
The offer is based on the complementary skills of EDF and NPCIL, and aims to build a long-term partnership between the French and Indian nuclear industries. Its main principles are as follows:
- EDF provides the EPR technology: as such, the Group supplies engineering studies and equipment for the construction of six (6) reactors. The Group relies on the know-how of its subsidiary Framatome to supply the engineering studies and equipment for the six (6) nuclear steam supply systems, and partners with its historical partner GE Steam Power for the supply of the engineering studies and equipment of the six (6) conventional islands, all of which are to be equipped with the French ArabelleTM steam turbine; EDF guarantees the performance of each of the 6 EPR units under specific conditions and for a predefined period of time; finally, EDF offers training services for NPCIL's future operating teams. EDF is neither an investor in the project nor in charge of the construction.
- NPCIL is responsible for the construction and the commissioning of each of the six (6) units of the Jaitapur Nuclear Power Plant, as well as for obtaining all necessary permits and consents in India, including the certification of the EPR technology by the Indian safety regulator, as the owner and future operator of the plant; during the construction phase, NPCIL may benefit from EDF and its partners’ assistance, notably regarding the sharing of other EPR project-related lessons learned.
In line with the "Make in India" and "Skill India" national initiatives and for the industrial benefit of the project, EDF and its partners also aim to encourage the involvement of India’s industrial sector. In this spirit, the EDF Group is deploying a strategy based on:
- in-depth work to identify Indian companies that could be selected as suppliers of the project; to date, some 200 companies have already been pre-qualified;
- the setup of an engineering platform in India, in particular to carry out part of the detailed engineering studies and all execution plans;
- the launch of a pre-feasibility study, conducted by EDF, I2EN (International Institute of Nuclear Energy) and VJTI (Veermata Jijabai Technological Institute), for the establishment of a centre of excellence in India aiming to train engineers and technicians, and to support the development of the necessary set of skills for the project.
The socio-economic benefits of the project for India would be significant, with the creation of around 25,000 local jobs during the construction phase for a pair of EPR units, not to mention tens of thousands of indirect and induced jobs. Moreover the operation of the 6 EPR units would create around 2,700 permanent jobs. The project would also generate significant economic benefits for the French nuclear industry over the entire duration of the project (approximately 15 years), with tens of thousands of jobs in the hundred or so involved French companies.
The Jaitapur Nuclear Power Plant project is a cornerstone of the bilateral cooperation between France and India: with an installed capacity of 9.6 GWe, the plant would be the most powerful in the world; it would generate up to 75 TWh per year and cover the annual consumption of 70 million Indian households while avoiding the emission of 80 million tons of CO2 per year*.
Jean-Bernard Lévy, Chairman and CEO of the EDF Group, said: "The submission of EDF's binding techno-commercial offer for the Jaitapur project is a major step forward for the Group and the French nuclear industry. This key milestone has been achieved thanks to the trust-based relationship built over time with our Indian partner, and the excellent collaboration and continuous efforts of the EDF and NPCIL teams. This is yet another significant step towards the materialization of this flagship project for our great nations, and the establishment of a long-term partnership in the civil nuclear field between both our leading nuclear industries. As a leader in low-carbon energy solutions and the world's largest nuclear operator, we are proud to support India in this major project, which illustrates the Indian government's determination to achieve 40% CO2-free energy in its mix by 2030, and which resonates perfectly with the Group's company purpose."
*Estimate based on a typical carbon dioxide emission for a coal-fired plant, equivalent to 1000g CO2/KWh. Based on the average Indian energy mix AIE 2017, the emissions avoided would be equal to 53Mt CO2/year.
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