Romanian state-controlled nuclear producer Nuclearelectrica (BVB: SNN) has responded to scepticism voiced by prime minister Ilie Bolojan and other senior officials regarding the financing of the planned small modular reactor (SMR) project at Doicești, estimated to cost USD 6–7 billion for a 462MW capacity.

The figure is comparable to the estimated EUR 7 billion required for Units 3 and 4 at the Cernavodă nuclear plant, which would add a combined 1,400 MW of capacity - raising questions about the relative cost-efficiency of the SMR project.

Prime minister Ilie Bolojan argued that investments in the refurbishment of Unit 1 at Cernavodă (to expand its lifespan) and the expansion of Units 3 and 4 are more feasible than those in the mini-reactors at Doicești.

More than EUR 200 million has already been spent on preliminary studies for the Doicești SMR project. The next stage, the pre-EPC (engineering, procurement, and construction) phase, is estimated at an additional USD 600 million and would include further technical and preparatory studies ahead of actual construction.

Asked by Hotnews.ro whether such a large investment is feasible, Nuclearelectrica argued that the structure of a country’s energy mix is not determined solely by the lowest investment cost, but by broader strategic considerations.

“A country’s energy mix is not structured on criteria related to the lowest cost of investments, but on reasons of political strategy, even geopolitical, and existing resources,” the company stated.

The comment came amid debate over funding capacity, as Nuclearelectrica is also preparing for the refurbishment of Unit 1 at Cernavodă - a 700MW reactor scheduled to enter a life-extension overhaul starting in 2027. The refurbishment is currently estimated at around EUR 2 billion, making it one of Romania’s largest upcoming investment projects.

In its response, the company stressed that the two projects do not compete for the same financial resources. According to Nuclearelectrica, the refurbishment of Unit 1 will be financed through a mix of own funds, syndicated bank loans, and loans backed by Export Credit Agencies (ECAs).

By contrast, the Doicești SMR project is expected to rely on a different financing structure, including the attraction of new investors, ECA-backed loans, grants, and other external funding sources.

Nuclearelectrica’s main shareholder is the Romanian state, and energy minister Bogdan Ivan recently instructed the ministry’s representatives to support the continuation of the SMR project. However, the debate highlights growing scrutiny over large-scale energy investments at a time of fiscal consolidation pressures and competing infrastructure priorities.

iulian@romania-insider.com

(Photo source: Inquam Photos/George Calin)