Doicești small modular reactor joint venture structure
A Romanian government audit has raised concerns about the governance and commercial structure of a planned small modular reactor project in Doicești. The development is intended to deploy small modular reactor technology at the former coal-power site in Doicești. It is being carried out through an equally owned joint venture in which Nuclearelectrica and Nova Power & Gas each hold 50 per cent.
Inspectors said the economic exposure borne by the two shareholders may not match their respective ownership stakes. They reported that Nuclearelectrica provided most of the funding committed to the development process. Nova Power & Gas contributed initial equity of approximately €4 million, along with land associated with the project.
Land acquisition, valuation and contribution concerns
The audit’s central concern relates to how the land was acquired before being placed into the project structure. Inspectors said the land was reportedly purchased using funds provided by Nuclearelectrica before it was transferred into the joint venture through the private partner. This led them to question whether Nova Power & Gas made an economically equivalent contribution that would justify its 50 per cent stake.
The report also found that the selected site was not the preferred location identified during earlier consultancy work. Inspectors said the eventual acquisition price was materially higher than the valuation used in the consultant’s assessment. They linked those findings to questions over decision-making and the commercial basis for the transaction.
Shareholder agreement and project risk allocation
Inspectors argued that the shareholder agreement allocates rights, responsibilities and project risks in a way that favours Nova Power & Gas. Their findings indicate that Nuclearelectrica may take on a larger share of development and financial exposure without receiving corresponding control or economic protection. The audit therefore highlights potential imbalances in how risk is distributed between the state-controlled company and its private partner.
The review comes as part of ongoing preparations for a final investment decision. The conditions required to reach that decision had not been completed by the end of June. Questions also remain over capital cost, financing structure, electricity-market competitiveness and allocation of construction risk.
Energy ministry position on technical and financial reassessment
Romania’s energy ministry previously resisted management proposals to reopen the project’s technical and financial assessment. Government representatives said insufficient evidence had been presented to justify a new evaluation. The audit adds a broader governance basis for reconsidering that stance.
Small modular reactors are promoted as a potential source of dispatchable low-carbon electricity, but first-of-a-kind projects involve substantial cost and execution risk. For Doicești, the development needs to address technology and licensing issues as well as early works financing, responsibility for overruns, and how the value of land and development rights is calculated .
Status of project approval and next steps under review
The audit does not itself terminate the Doicești project. It increases the likelihood of revised shareholder arrangements, additional valuation work and a more detailed review before Romania commits substantial public capital .
