Romania’s nuclear investment approach separates proven capacity at the Cernavoda Nuclear Power Plant from the proposed Doicesti Small Modular Reactor (SMR) development. State-owned Nuclearelectrica is preparing to secure long-term buyers for up to 400 MW of baseload electricity. The contracts are planned to run from 2027 to 2046, with revenues intended to support the refurbishment of Unit 1. Separately, the Doicesti SMR project remains under scrutiny over governance, shareholder responsibilities, cost distribution and the overall commercial structure.
Cernavoda auction structure and contract value
The planned Cernavoda electricity auction is set to be divided into five supply blocks. It would include three contracts of 100 MW and two contracts of 50 MW, totalling about 3.5 TWh of annual electricity generation. At the minimum auction price, the combined lifetime value of the contracts could reach around EUR 5.6 billion, excluding inflation adjustments. The pricing model uses an indexed floor price alongside a maximum price cap.
The contract design is intended to provide Nuclearelectrica with predictable revenues while limiting exposure for electricity buyers during periods of extreme market volatility. The refurbishment programme is backed by an EUR 800 million loan from the European Investment Bank (EIB). This financing support forms part of the broader funding strategy for extending Unit 1 operations.
Refurbishment financing basis and operational risks
In terms of investor considerations, the Cernavoda refurbishment is presented as a proven and financeable infrastructure model. It relies on an operating nuclear facility, a defined refurbishment programme and long-term electricity contracts based on recognised EFET market standards. Risks cited include construction delays, cost inflation and counterparty credit exposure. Another risk involves replacing contracted electricity during possible outages.
The ability to assess and manage these challenges is linked to contractual mechanisms and operational data from an established nuclear asset. The approach contrasts with new-build uncertainty associated with first-of-a-kind technology deployment discussed for the Doicesti SMR.
Doicesti SMR governance, land and cost concerns
The Doicesti SMR development is described as a different investment proposition from refurbishing an existing unit. The project would involve deployment of a first-of-a-kind technology, which carries greater development and execution uncertainty. A government audit raised concerns about project location, land acquisition procedures and a 50:50 ownership structure between Nuclearelectrica and Nova Power & Gas. The audit findings state that Nuclearelectrica carried a significant share of financial exposure while retaining equal ownership rights.
Nuclearelectrica said it invested approximately USD 243 million in project development. The audit identified delays of around 20 months and a potential cost increase of approximately USD 3.8 billion. The audit also references issues including site preparation costs exceeding EUR 20 million, along with land valuation contributed by the private shareholder.
Cooling-water contingency planning at Cernavoda
Cernavoda’s operational planning has also been shaped by climatic conditions affecting cooling arrangements. Cernavoda Unit 1 was temporarily placed into controlled shutdown after exceptionally low Danube River levels affected cooling conditions. Cernavoda Unit 2 continued operating under enhanced monitoring during the same period.
Authorities prepared contingency measures covering scenarios in which both reactors became unavailable. Those measures included additional gas-fired generation, increased renewable output, battery storage deployment and electricity imports . The event was used to highlight the need for future nuclear planning to incorporate cooling-water security and assess impacts from prolonged drought across interconnected regional power systems .
Diverging maturity levels across Romania’s nuclear pathways
The two nuclear pathways are treated as separate investment cases rather than competing versions of a single programme. The Cernavoda Unit 1 refurbishment focuses on extending life of an existing low-carbon generation asset supported by long-term revenue visibility and proven operational performance. By contrast, the Doicesti SMR project remains at a technology development stage with governance structure, financing model and commercial viability requiring validation before major additional capital commitments are made.
A key governance issue highlighted for early-stage complex infrastructure projects involves establishing clear rules for financing obligations, asset valuation, ownership adjustments and allocation of risks related to delays, additional costs or potential project cancellation. Before construction begins on a first-of-a-kind nuclear facility, value creation is described as occurring through feasibility studies, engineering work, licensing procedures, land preparation and technology agreements.
