Romania is advancing two distinct nuclear investment strategies that differ significantly in terms of risk, financing and project maturity. At the Cernavoda Nuclear Power Plant, state-owned Nuclearelectrica is preparing to sell up to 400 MW of baseload electricity through long-term contracts running from 2027 to 2046 to support the refurbishment of Unit 1. Meanwhile, the proposed Doicesti Small Modular Reactor (SMR) project continues to face questions regarding governance, shareholder responsibilities, project costs and implementation timelines.
The planned Cernavoda auction is structured around five electricity supply blocks, including three contracts of 100 MW and two of 50 MW, representing annual electricity production of approximately 3.5 TWh. Based on the minimum auction price, the contracts could generate around EUR 5.6 billion over their duration, excluding inflation adjustments. The pricing mechanism combines an indexed minimum price with an upper price cap, providing Nuclearelectrica with long-term revenue certainty while protecting electricity buyers from excessive market volatility. An EUR 800 million loan from the European Investment Bank (EIB) already forms part of the financing package for the refurbishment programme.
From an investment perspective, the Cernavoda project represents a well-established bankability model. The refurbishment is based on an existing nuclear reactor with a defined scope of work and long-term contracts supported by creditworthy counterparties under recognised EFET standards. Although investors must consider risks such as construction delays, cost overruns, counterparty credit quality and the temporary replacement of contracted electricity during reactor outages, these challenges can be managed through contractual arrangements and assessed using the plant’s long operating history.
The Doicesti SMR project, however, presents a far more complex investment profile. A recent government audit raised concerns over the selection of the project site, land acquisition procedures and the 50:50 ownership structure between Nuclearelectrica and Nova Power & Gas. According to the audit, the state-owned utility has assumed the majority of the project’s financial exposure while maintaining equal ownership with its private partner. Nuclearelectrica stated that it has invested approximately USD 243 million in project development, while auditors reported delays of around 20 months together with an estimated USD 3.8 billion increase in project costs.
The disagreement over more than EUR 20 million in site preparation works and the valuation of land contributed by the private shareholder highlights the importance of strong governance during the early stages of major infrastructure projects. Before construction of a first-of-a-kind reactor begins, significant value is created through engineering studies, environmental assessments, licensing, land acquisition and vendor agreements. For this reason, shareholder agreements must clearly define funding responsibilities, asset valuation methodologies, ownership adjustments and the allocation of financial risks associated with project delays or cancellation.
Recent weather conditions have also highlighted the importance of climate resilience for nuclear power generation. Cernavoda Unit 1 was placed into a controlled shutdown after water levels in the Danube River fell to exceptionally low levels, affecting cooling conditions. Although Unit 2 continued operating under enhanced monitoring, Romanian authorities prepared contingency measures that included increased gas-fired generation, higher renewable electricity production, battery storage utilisation and electricity imports should both reactors become unavailable. The incident illustrates that future energy security planning for nuclear generation must incorporate cooling-water resilience and assess the impact of prolonged drought conditions across the wider region.
Romania’s two nuclear projects therefore represent fundamentally different investment propositions rather than alternative versions of the same strategy. The refurbishment of Cernavoda Unit 1 aims to preserve proven low-carbon generation capacity supported by long-term contracted revenues and an established operating history. By contrast, the Doicesti SMR project remains a technology development initiative whose governance framework, commercial structure and financial viability must be clearly demonstrated before significant additional capital can be committed. Maintaining this distinction will be essential to preserving investor confidence and supporting the long-term credibility of Romania’s nuclear expansion programme.
