Romania: New reactors at NPP Cernavoda still a priority for Gov

, SEE Energy News

CEO of Nuclearelectrica, the company which operates Romanian sole nuclear power plant Cernavoda, Daniela Lulache said that the Government’s approval of the support letter for the project of the construction of additional two reactors at NPP Cernavoda at the beginning of 2016, certifies the fact that this project is still a priority for Romania and that it can only be implemented with the support of the state.

Lulache explained that the negotiation procedure with the Chinese partner is ongoing and the representatives of both the company and the state are involved in a negotiation commission. The support letter issued by the Government says that Romania is aware that this project can develop only with the involvement and the support of the Romanian state. The letter also describes a number of support mechanisms that the Government will analyze and grant for the development of the project. These include the implementation of the contract for the difference mechanism and a series of fiscal facilities and state guarantees for the project’s financing. However, part of these support mechanism could be considered as state aid, so they must be approved by the European Commission.

In the beginning of September 2014, CGN was selected as the only qualified investor in the project and submitted the only bid later that month. On 17 October 2014, Nuclearelectrica announced that CGN was appointed selected investor for the development of units 3 and 4 at NPP Cernavoda. The company also said it has signed joint letter of intent for the project with CGN. Contract for NPP Cernavoda could be closed by the end of 2015, and its cost is estimated at 6.5 billion euros. However, it is expected that new feasibility study will reevaluate projects’ costs.

In March 2015, Nuclearelectrica and selected investor for the continuation of the project for the construction of additional units at NPP Cernavoda, China General Nuclear Power Corporation (CGN) have initiated the signing of the Memorandum of Understanding, which establishes the directions of the future cooperation between Nuclearelectrica and CGN on developing and implementing the project. The MoU was officially signed last November, transmits