Shareholders of Romanian nuclear operator Nuclearelectrica have approved plans to auction as much as 400 MW of future baseload production under contracts extending from 2027 to 2046.
The transaction is intended to provide predictable long-term revenue supporting the refurbishment of Cernavoda unit 1. The reactor is scheduled to undergo extensive modernization between 2027 and 2030, including a temporary shutdown while major systems and components are replaced.
The electricity package will be divided into five blocks, comprising three 100 MW products and two 50 MW products. Full subscription would represent approximately 3.5 TWh of annual electricity, equivalent to around 70 TWh over 20 years before accounting for maintenance and outage adjustments.
At the minimum auction price, the package is valued at approximately €5.6 billion, excluding future inflation adjustments. That valuation implies an average floor close to €80/MWh across the contractual delivery volume.
The auction will be conducted through the Romanian Commodities Exchange, or BRM, rather than OPCOM. Nuclearelectrica concluded that BRM offered lower transaction costs, greater contractual flexibility and a structure more compatible with the shareholder approvals required for such a long-term commitment.
Contracts will be based on the EFET standard and restricted to financially qualified counterparties. Potential buyers include electricity suppliers, international trading companies and large industrial consumers capable of managing long-term power-price and credit exposure.
The pricing formula combines an inflation-indexed minimum price with an upper cap. Annual prices will move with market conditions but remain within the contractual corridor. Buyers may also select an alternative settlement mechanism linked to Romania’s day-ahead market.
For Nuclearelectrica, the floor provides revenue protection during weak wholesale markets, while the cap gives buyers protection against extreme price increases. The structure retains more market exposure than a conventional fixed-price power-purchase agreement but offers greater predictability than merchant sales.
The refurbishment financing package already includes approval for an €800 million European Investment Bank loan. The 20-year offtake contracts could strengthen debt-service visibility and reduce refinancing risk, although final agreements will still require shareholder approval.
Contract terms allow Nuclearelectrica to reduce deliveries during planned maintenance and unplanned reactor outages. This flexibility is essential for a nuclear asset but transfers part of the replacement-power risk to buyers, who will need to assess volume tolerance, credit support and market-cover arrangements.
Committing 400 MW will reduce the output available for shorter-term transactions, but it will also establish a long-dated Romanian nuclear price reference. The auction is as much a test of corporate demand for firm low-carbon electricity as it is a financing instrument for Cernavoda.
