The management of Romanian state-controlled nuclear power producer Nuclearelectrica (SNN) says the Government should set the terms, including the support mechanism, before going ahead with the preliminary investment decision for the EUR 7 billion expansion of the Cernavoda power plant, Economica.net reported.

Nuclearelectrica's initial partner for this project, China General Nuclear Power, insisted on a Contract for Difference to guarantee a minimum price for the electricity produced.

However, Nuclearelectrica terminated the initial agreement with the Chinese company due to political reasons and switched to a consortium of US, Canadian, and French companies to carry out this project.

The final investment decision will be taken after two stages that will span over four years: the first one of 24 months (Preliminary Notice to Proceed, Pre-LNTP) and the second one of 18-24 months (Limited Notice to Proceed - LNTP).

Last week, Nuclearelectrica CEO Cosmin Ghita stated that he expected the construction of the new reactors to start in 2024.

The preliminary investment decision and the advance to the next stage of the project depend on an agreement between the Romanian state and Nuclearelectrica (SNN), which should establish the responsibilities of the parties regarding the provision of financing, the adoption of support mechanisms and the provision of infrastructure conditions for the completion and operation of the project, according to the Strategy drafted by the company’s management.

The Strategy will be subject to shareholders’ vote in the next meeting and can be consulted by shareholders upon signing confidentiality agreements. 

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andrei@romania-insider.com