The Romanian Ministry of Energy, which holds an 82% majority stake in Nuclearelectrica, has instructed the company to proceed with the acquisition of land from its private joint venture partner, Nova Power and Gas (NPG). The land is earmarked for the development of a small modular reactor (SMR) complex in Doicesti.
Following the announcement, Nuclearelectrica’s share price dropped by 4% before the close of trading on March 21. This decision comes after the Ministry previously refrained from approving the land purchase during a shareholders’ meeting in January.
The joint venture agreement, signed in September 2022 between Nuclearelectrica and NPG, initially stipulated that the land would be sold at its book value, covering incurred costs. However, the latest investor note now proposes a market-value sale, which remains subject to shareholder approval.
Nuclearelectrica and NPG established a 50:50 joint venture, Ropower Nuclear, to develop the SMR project, estimated to cost between €4 billion and €6 billion. NPG was chosen as a partner due to its ownership of the Doicesti site—a former coal-fired power plant considered suitable for the project because of its existing infrastructure. However, while NPG operates in the energy utilities sector, its financial capacity and experience with projects of this scale are more limited compared to Nuclearelectrica.
The final purchase price for the land will be determined based on a market valuation, in compliance with legal requirements. This valuation will include all expenses incurred by NPG since acquiring the property, such as financing costs, capital investments, site improvements, decontamination efforts, and maintenance expenses. Ropower Nuclear retains the right to request documentary evidence of these costs to ensure transparency and compliance with valuation reports.
The final decision on the land acquisition will be reviewed at the upcoming general shareholder meeting on April 8.
