Long-term baseload auction for Cernavoda unit 1 output
Shareholders in Romanian nuclear operator Nuclearelectrica have approved plans for a long-term auction covering as much as 400 MW of future baseload electricity. The contracts are set to run from 2027 to 2046. The transaction is designed to generate predictable long-term revenue linked to the refurbishment of Cernavoda unit 1.
The refurbishment programme includes extensive modernization between 2027 and 2030. It also involves a temporary shutdown during which major systems and components are replaced. The auction package is intended to support the refurbishment financing needs associated with that work.
Auction structure, volumes and minimum price valuation
The electricity offering will be split into five blocks. It comprises three products of 100 MW each and two products of 50 MW each. If fully subscribed, the package would represent approximately 3.5 TWh of annual electricity.
On that basis, full subscription corresponds 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.
BRM auction venue and contract framework
The auction will be conducted through the Romanian Commodities Exchange, known as BRM, rather than OPCOM. Nuclearelectrica said BRM would involve lower transaction costs and provide greater contractual flexibility. It also cited a structure more compatible with the shareholder approvals required for a long-term commitment.
Contracts will follow the EFET standard and will be restricted to financially qualified counterparties. Potential buyers include electricity suppliers, international trading companies and large industrial consumers managing long-term power-price and credit exposure.
Inflation-linked pricing, settlement options and risk allocation
The pricing formula combines an inflation-indexed minimum price with an upper cap. Annual prices are expected to move with market conditions while remaining within the contractual corridor. Buyers may also choose an alternative settlement mechanism linked to Romania’s day-ahead market.
Nuclearelectrica said the floor provides revenue protection during weak wholesale markets, while the cap protects buyers against extreme price increases. The structure is described as retaining more market exposure than a conventional fixed-price power-purchase agreement, while offering greater predictability than merchant sales.
Refurbishment financing and delivery flexibility during outages
The refurbishment financing package already includes approval for an €800 million European Investment Bank loan. The planned 20-year offtake contracts could strengthen debt-service visibility and reduce refinancing risk, although final agreements still require shareholder approval. Delivery terms allow reductions during planned maintenance and unplanned reactor outages.
This flexibility is intended to reflect operational realities of a nuclear asset while shifting part of replacement-power risk to buyers. Buyers would need to assess volume tolerance, credit support and market-cover arrangements under those terms. Committing 400 MW would also reduce output available for shorter-term transactions while establishing a long-dated Romanian nuclear price reference.
