Reactors 3 and 4
Context
The project of CANDU Units 3 and 4 CNE Cernavoda is foreseen in the Energy Strategy Project of Romania 2019-2030 with the perspective of 2050 as well as in the Integrated National Plan in the field of Energy and Climate Change, as a pillar of Romania’s energy independence and the achievement of decarbonization targets assumed by Romania as an EU Member State.
The intention of the Romanian state and SNN, in accordance with the new strategy, is to realize this project of ~2×700 MWe in a Euro-Atlantic consortium based on the Agreement between the Government of Romania and the Government of the United States of America regarding cooperation in relation to the projects nuclear-energy from Cernavodă and in the civil nuclear energy sector in Romania, initialed in October 2020 in Washington DC by the US and Romanian governments, approved by the EC later and ratified by the Parliament Romania in July 2021. There is also US interest, through US Exim, to finance Romanian nuclear projects with 7 billion dollars.
Romania needs new electricity production capacities as a solution for the transition to an economy with low carbon emissions, and which simultaneously offers stability, safety, availability in SEN, as well as socioeconomic benefits. The project of Units 3 and 4 from CNE Cernavoda has all the prerequisites to provide all these benefits.
Through the implementation of the project, the contribution of nuclear energy in the total energy production, at the national level, will be 36%, and the contribution of nuclear energy in the total energy production without CO2 emissions, of 66%, simultaneously with the development of the internal supply chain and other collateral industries.
The Romanian nuclear industry has the experience and ability to participate with important works and services in the new project at Cernavodă, experience acquired since the commissioning and maintenance of the first two nuclear units.
Description
Construction of 2 more CANDU 6 units on the CNE Cernavoda site
Capacity
700 MW/Unit; 1400 MW/2 units
Stages of realization
Stage 1, the current one, represents the preparatory stage, which started with the capitalization and operationalization of the project company, Energonuclear SA This stage will have a duration of 24 months in which technical, legal and financial assistance services, engineering services will be contracted for updating the Technical Procurement Specification, launching and awarding the IPC (Engineer, Procurement and Construction) contract, as well as conducting studies and evaluations necessary to substantiate a preliminary decision regarding the investment.
On November 25, 2021, Energonuclear SA, the project company, signed the first contract with Candu Energy, Member of the SNC-Lavalin group and Design Authority of Units 3&4 and OEM Candu (Original Manufacturer of Candu Technology). Within the contract, CANDU Energy will provide engineering services for the development and updating of some documentation necessary for the start of the CANDU Units 3&4 Project (including the update of the basic licensing documents, the update of the nuclear safety guidelines, the update of the list of project changes with nuclear safety functions, etc. .).
The second stage of the project (Preliminary Works) consists of carrying out preliminary works from Phase 1 of the IPC (Engineer, Procurement and Construction) contract and will last 18-24 months. In this stage, engineering works and market analysis will be carried out regarding the suppliers of equipment and services necessary for the implementation of the project, so that at the end of this stage the feasibility of the Project will be refined. Also at this stage, the documentation for obtaining approvals and approvals including from the European Commission will be submitted based on Article 41 of the Euroatom Treaty. At the end of this stage, the feasibility of the Project will be reanalyzed based on the new technical-economic indicators and the Final Investment Decision will be taken, which will allow the Project to move to Stage 3.
The third stage of the project actually consists of carrying out the works in the construction site, assembly and commissioning, stage estimated at 69-78 months. It is estimated that Unit 3 will be commissioned in 2030, following the commissioning of Unit 4 in 2031
The law regarding the approval of the signing of the Support Agreement between the Romanian State and Nuclearelectrica, in order to develop the National Strategic Project Cernavoda CNE Units 3 and 4, was approved on March 14, 2023.
The approval of this draft law is necessary to start the activities related to Stage II of the Project, which will allow: the conclusion of contracts for the development of the critical engineering necessary to update the project; updating the Project budget; structuring and contracting financing and agreeing an appropriate contractual architecture for the implementation of the Project; obtaining the favorable Opinion of the European Commission following the notification of the Project according to art. 41 of the EURATOM Treaty and respectively of a positive decision in accordance with the relevant European provisions on state aid; obtaining the Nuclear Security Authorization for the Construction stage and taking the Final Investment Decision, for the transition to Stage III (Construction).
The support agreement implies the commitment of the Romanian state in carrying out the steps necessary to finance the Project, including by: granting state guarantees to the project’s financiers, within any intergovernmental support agreements or memorandums or outside such agreements; the implementation of the ” Contracts for difference” type scheme and the adoption of administrative and/or legislative measures in order to ensure the fulfillment of the technical criteria provided for in the Complementary Delegated Act of the European Commission; the input into nature through the amount of heavy water and uranium octoxide related to the first nuclear fuel load, the cooling water for the operation of the 2 nuclear units and the completion of the electricity transmission lines necessary for the purpose of connection to the National Energy System and the evacuation of the electricity produced in the two nuclear units.
Commissioning
Unit 3-2030
Unit 4-2031
Estimated cost
7 billion EURO
US Exim Bank announced the issuance of two letters of interest for the financing of pre-project technical services provided by the US in connection with the project Units 3 and 4 from Cernavoda, developed by the subsidiary Societății Nationale Nuclearelectrica SA
Based on the preliminary information presented, EXIM will be able to consider financing up to US$50,000,000.00 of the US export contract for pre-project technical services as part of the Engineering Multiplier Program (EMP) and up to US$3 billion from the US export contract for engineering and project management services for the contract to complete Units 3 and 4 of the Cernavoda nuclear power plant.
Financing structure
TBD in stage 2
Socio-economic effects
66% contribution of clean energy nationally
Over 19,000 jobs in the industry
Tons of CO2 avoided
5 million tons of CO2 avoided/unit/year
20 million tons of CO2 avoided/4 units/year