The investment decision approved by the shareholders of Nuclearelectrica paves the way for a process of refurbishment that will allow Unit 1 at Cernavodă, which went into commercial operation in 1996, to operate for another 30 years, starting in 2029. The company’s estimated cost of 1.85 bn euro is less than half the cost of a new nuclear reactor.
„Lifetime extension of nuclear units has the lowest levelized cost of energy of all energy sources, renewables included”, said Cosmin Ghiță, Chief Executive Office Nuclearelectrica. He also insisted that nuclear power has no carbon emissions.
In 2020, the last year for which we have complete data from the company, reactor 1 at Cernavodă delivered about 5 GWh to the national energy system, contributing about 1 billion lei out of a total of 2.5 billion lei, which was the company’s total revenue. We approximated the different share of the two reactors in Nuclearelectrica’s actual production in 2020, as reactor 1 had an average capacity factor of 87.29%, compared to 98.32% for reactor 2. The market value of Cernavodă reactor 1’s 2020 output was around 200,000 euros, which means a payback of less than 10 years at an average price below 50 euros per MWh. In 2021, the average price of electricity on the bilateral contracts market exceeded 90 euros per MWh, according to OPCOM, which reduces the payback period for the refurbishment of reactor 1 at Cernavodă to less than 5 years.
Once with the approval of the investment decision, the management move on to the second phase of the project (2022-2026) namely
- the assurance of financial resources for the unfolding of Unit 1 Refurbishment
- preparedness of execution
- obtaining all the necessary approvals and permits
The version approved by Nuclearelectrica shareholders includes design changes that additionally provide the enhancement of nuclear safety margins of the power plant and take into consideration the new tendencies to increase the robustness from a nuclear safety standpoint.
Hundreds of jobs for Nuclearelectrica projects
The current cost for the implementation of Scenario no. 2 is approximately 1,85 billion euros without the financing cost and inflation rate update at the date Unit 1 Refurbishment contract will be signed.
„The Refurbishment of a nuclear unit is a very complex process, similar to a new build, but one which offers net environmental and financial advantages, also adding the security of supply, availability and stability”, said Sorin Ghelbereu, Strategic Projects Manager, Cernavodă NPP. General Director Cosmin Ghiță added that 100 people were hired in 2021 for this project, and they will be part of the organizational structure of the project during the second phase. “We are in the process to form a new generation of nuclear specialists. […] Part of the newly hired will be sent for on-the-job training to Canadian nuclear power plants which have already experienced refurbishments processes. Also, considering all our strategic projects, we unfold an ample program to recruit and train a new generation of nuclear specialists. Last year we recruited 500 colleagues, and for this year we plan a similar number”, added Cosmin Ghiță.
Phase 3 (2027-2029) will start once with the shutdown of Unit 1 and consists of the effective unfolding of Unit 1 Refurbishment workings, inside the Unit’s installation, as well as in its commissioning for a new operation cycle of 30 years, after 2029.