Romania Approves Investment in NuScale SMR Project, Faces Funding Challenges

Romania has taken a significant step towards deploying small modular nuclear reactors (SMRs) with the approval of the Final Investment Decision (FID) for a project at Doicești, approximately 90 kilometers northwest of Bucharest. However, the $6-7 billion undertaking faces considerable financial hurdles, prompting debate over its feasibility compared to other nuclear energy investments within the country.

Project Details: NuScale SMR at Doicești

The planned facility will utilize NuScale’s VOYGR-6 technology, featuring six modules, each with an installed capacity of 77 MWe, for a total installed capacity of 462 MWe. This represents roughly two-thirds of the power generated by a single reactor at the Cernavodă Nuclear Power Plant. The project aims to replace a former 600 MW coal plant, providing a cleaner and more stable energy source.

Economic Impact and Job Creation

The SMR project is projected to create nearly 200 permanent jobs, 1,500 construction jobs, and 2,300 manufacturing and component assembly jobs over its 60-year operational lifespan.

Funding and Implementation Timeline

Despite the FID approval by Nuclearelectrica’s shareholders, Romanian Prime Minister Ilie Bolojan cautioned that securing funding remains a major challenge. He estimates the project will seize 5-6 years to implement, with no immediate investment expected. The project will enter a phase of financial structuring and partnership consolidation over the next six months, focusing on defining financing mechanisms and attracting investors.

Comparison with Cernavodă Modernization

Bolojan highlighted that modernizing Units 3 and 4 at the Cernavodă Nuclear Power Plant is considered more feasible due to established technology and clearer funding pathways. The modernization of Unit 1 at Cernavodă, costing around €1.9 billion (excluding VAT), demonstrates a significantly lower cost per megawatt of generated capacity compared to the planned SMRs at Doicești.

US Financial Backing

The project has secured some US financial backing, including a $98 million pre-project loan from the Export-Import Bank of the United States and Letters of Interest up to $1 billion from the US International Development Finance Corporation. Up to $3 billion in potential support is also available from Exim.

Ownership Structure

The project is owned by Nuclearelectrica (82% state-owned), Nova Power & Gas (part of E-INFRA), and RoPower Nuclear.

Timeline

The target for the first module’s commercial operation is 2033.