Earlier this week, the Romanian government adopted a new draft act on the approval of the “Support Agreement” between the state and Nuclearelectrica SA for the development of Units 3 and 4 of the Cernavodă nuclear power plant (NPP).
The operator of the nuclear power plant, Nuclearelectrica, is a Romanian state-operated energy company which produces electricity, heat and nuclear fuel.
“It is a very important law, which I hope will be adopted as quickly as possible by my colleagues in the Parliament, in order to move forward with the project of the new units in Cernavodă,” said the Energy Minister, Virgil Popescu. “Yes, Romania will become energy independent and, at the same time, we will ensure our energy security and the achievement of decarbonisation targets with the help of nuclear energy. Because decarbonisation can’t be done without nuclear energy.”
Once adopted by the Romanian Parliament, the act will allow Unit 3 to enter into operation at the end of 2030 and Unit 4 in 2031. The completion of both Units will double the contribution of nuclear energy in the energy system from approximately 20 per cent to 36 per cent. In addition, new jobs in the nuclear sector are expected to be created, together with a boost to the supply chain and access to loans and financial support. An increase in revenue of the local budget in the development area of the Cernavodă NPP Units 3 and 4 Project is also expected. Indeed, the state budget is also set to benefit as a result of investments and the establishment of new enterprises in research and innovation activities in the region. From the consumers’ perspective, this investment aims to protect vulnerable consumers and reduce energy poverty.
The Ministry of Finance will take the necessary steps to finance the construction of the two reactors, including but not limited to granting State Guarantees to the Project’s financiers.
In October 2020, Romania and the United States agreed to cooperate on the construction of Units 3 and 4 and the refurbishment of Unit 1 at the Cernavoda nuclear power plant, the only nuclear power plant in Romania, which produces around 20 per cent of the country’s electricity. Following this key decision, during this year’s COP27, the Chair of the US EXIM Bank, Reta Jo Lewis presented Letters of Interest to the Romanian delegation to finance the construction of Cernavodă’s units 3 and 4.