Introduction

Romania has the second largest power sector, produces the greatest quantity of oil, and has the largest refining capacity in South East Europe. Romania is self-sufficient in uranium and operates Unit 1 at the Cernavoda Nuclear Power Plant (NPP). The country is the second biggest power exporter in the region, after Bulgaria. The Romanian electricity grid is already connected to the central European power system (CENTREL) and is being connected to the western one (UCTE). The units at the Cernavoda NPP are CANDU 6 type, designed by Atomic Energy of Canada Ltd (AECL). They are western-style units that comply with Western safety standards. The first unit came into operation in 1996 and the second reactor was inaugurated by the Prime Minister, Calin Popescu-Tariceanu on 5 October 2007. This rejuvenates the country’s ageing power system, ensures security of supply and reduces CO2 emissions. The plant is now the main source of energy of the country. The current government continues to favour the development of nuclear energy and is giving priority to Cernavoda Units 3 and 4, which are expected to be completed by 2020. On 5 November 2007, binding offers from six companies for the completion and commissioning of units three and four of Romania’s Cernavoda nuclear power plant were accepted. The Prime Minister also announced that the government intends to build a second nuclear power plant by 2030 if required by energy demand.

Country Profile

Executive Summary

Romania has the second largest power sector, produces the greatest quantity of oil, and has the largest refining capacity in South East Europe. Romania is self-sufficient in uranium and operates Unit 1 at the Cernavoda Nuclear Power Plant (NPP). The country is the second biggest power exporter in the region, after Bulgaria. The Romanian electricity grid is already connected to the central European power system (CENTREL) and is being connected to the western one (UCTE). The units at the Cernavoda NPP are CANDU 6 type, designed by Atomic Energy of Canada Ltd (AECL). They are western-style units that comply with Western safety standards. The first unit came into operation in 1996 and the second reactor was inaugurated by the Prime Minister, Calin Popescu-Tariceanu on 5 October 2007. This rejuvenates the country’s ageing power system, ensures security of supply and reduces CO2 emissions. The plant is now the main source of energy of the country. The current government continues to favour the development of nuclear energy and is giving priority to Cernavoda Units 3 and 4, which are expected to be completed by 2014-2015. On 5 November 2007, binding offers from six companies for the completion and commissioning of units three and four of Romania’s Cernavoda nuclear power plant were accepted. The Prime Minister also announced that the government intends to build a second nuclear power plant.

Security of supply

The nuclear unit at the Cernavoda NPP is a CANDU 6 type model, designed by Atomic Energy of Canada Ltd (AECL). In the late 1970s, a five-unit nuclear power plant was planned at Cernavoda. But a lack of financial resources and a drop in power demand after 1990 resulted in the suspension of construction work on the last four units, and efforts were refocused instead on building Unit 1. Unit 1 began operation in 1996. In 2000, the government decided that completion of Cernavoda-2 was a high priority and provided some €60 million for the construction project. Further finance was provided in 2002-03, with a €382.5 million package announced by the government that included €218 million from Canada. In 2004, a €223.5 million Euratom loan was approved by the European Commission for completion of Unit 2, including safety upgrades. The construction of Cernavoda’s Unit 2 was resumed in March 2003. Four years later, on May 6, 2007 Unit’s 2 reactor reached criticality and was 1st connected to the national power system on August 7, 2007.

The unit was built by AECL-Ansaldo-SNN S.A. management team, and is due to come into commercial operation by October 2007. The current government continues to favour the development of the nuclear energy and is focusing on investing in Cernavoda’s Unit 2. This will help rejuvenate the country’s ageing power system.

SNN S.A. has also a manufacturing license for producing CANDU 6 nuclear fuel elements and can provide the fuel production capacity required to meet demand from two Cernavoda units.

The government has issued a decision in June 2007 to approve the strategy to select investors in order to set-up a Project Company (PC) with the participation of SNN and strategic investors, based on Corporate Finance approach. The PC will be in charge to finalize Units 3 and 4. The estimated cost of 2,2 – 2.4 billion euro will be provided by investors up to 30% (equity financing) and by the funds attracted by the Project Company. The units are expected to come on line by 2020. Romania is required to shut down or rehabilitate the obsolete thermal power plants to comply with the EU environmental standards.

Cernavoda will replace the production of the thermal units, bringing an important added value to the security of supply of Roman and contribute to the reduction of CO2 emissions.

Nuclear Policy

The first nuclear unit at the Cernavoda NPP is a CANDU 6 type model, designed by Atomic Energy of Canada Ltd (AECL). In the late 1970s, a five-unit nuclear power plant was planned at Cernavoda. But a lack of financial resources and a drop in power demand after 1990 resulted in the suspension of construction work on the last four units, and efforts were refocused instead on building Unit 1. Unit 1 began operating in 1996. In 2000, the government decided that completion of Cernavoda-2 was a high priority and provided some €60 million for the construction project. Further finance was provided in 2002-03, with a €382.5 million package announced by the government that included €218 million from Canada. In 2004, a €223.5 million Euratom loan was approved by the European Commission for completion of Unit 2, including safety upgrades. The construction of Cernavoda’s Unit 2 was resumed in March 2003.

The unit was built by AECL-Ansaldo-SNN S.A. management team, and came into commercial operation in October 2007. The total cost of the project is about €777 million. It was inaugurated by the Prime Minister, Calin Popescu-Tariceanu on 5 October. The current liberal-democratic alliance government continues to favour the development of the nuclear energy and is focusing on investing in nuclear. This will help rejuvenate the country’s ageing power system. The government is also making also efforts to resume works on Unit 3 and 4. On 20 June 2007, the government approved a strategy to select investors for the construction of Cernavoda’s units 3 and 4 which are expected to be completed by 2014 and 2015. On 5 November 2007, binding offers from six companies (Arcelo-Mittal of Romania; CEZ of the Czech Republic; Electrabel of Belgium; Enel of Italy; Iberdrola of Spain; RWE of Germany) for the completion and commissioning of units three and four of Romania’s Cernavoda nuclear power plant were accepted. The investment is estimated to €2.2 billion. The Prime Minister also announced that the government intends to build a second nuclear power plant. The Minister of Economy has been asked to find a location where the new plant could be built and several surveys have already been carried out. The potential locations of the new NPP are either along the Olt river, in Faragas or in Moldova.

Romania is required to shut down its obsolete thermal power plants to comply with the EU environmental standards. Cernavoda will replace the production of the thermal units and contribute to the reduction of CO2 emissions. SNN S.A. has also a manufacturing license for producing CANDU 6 nuclear fuel elements and can provide the fuel production capacity required to meet demand from two Cernavoda units.

Nuclear Safety and Waste Management

Romania operates a one unit power plant in Cernavoda, based on a technology transfer from Canada (AECL). Construction began in 1979. It was among the first NPPs in Eastern Europe to employ western technology (following the Krsko PWR in Slovenia). Therefore, it complies with western safety standards. The Romanian Nuclear Activities Authority (RAAN) undertakes R&D on safety, nuclear fuel, radiation protection and production of heavy water projects. The National Commission for Nuclear Activities Control (CNCAN), set up under the Nuclear Act of 1996 (republished in 2003) ensures safety and grants operation licences to nuclear sites. It is also responsible for monitoring safeguards and other developing contacts with international partners to ensure conformity with IAEA standards, including in the area of radiation protection.

The Romanian National Agency for Radioactive Waste Management (ANDRAD) was set up in 2004 and is pushing through secondary legislation relating to waste management, final disposal and the decommissioning of nuclear facilities. Spent fuel is stored at the reactor for up to eight years. A dry storage facility for spent fuel is being built together with Romanian contractors, based on the Macstor system designed by AECL. The first module was commissioned and has been operating since 2003. The construction of modules 2, 3 and 4 started in 2005 and they will be operational by May 2006. At full capacity, this 50-year interim storage facility will accommodate 27 modules. Preliminary investigations are being carried out concerning the location of a deep geological repository. A low and intermediate-level waste repository is being envisaged at a site close to Cernavoda. Facilities for the treatment of radioactive waste are currently being run at Pitesti and in Bucharest.

Climate Change

Romania has ratified the Kyoto Protocol, but its impact upon current energy policy has not yet been significant because of the almost 50% decrease in CO2 emissions registered during the 1990s. It is worth pointing out that there efforts are being made to mitigate the affects of CO2 emissions and to suitably modernise the industry, but the emissions decrease is mainly due to the severe economic recession that hit Romania the end of 20th century. IN any event, the Cernavoda NPP’s single unit contributes to an annual reduction of CO2 emissions of 4 million tonnes.