Krsko NPP expansion cost seen at 9.3 - 15.4 bln euro - Gen-Energija

"The estimated investment value is 9,300 euro per kW of installed power. This means 9.3 billion euro for 1,000 MW and 15.4 billion euro for 1,650 MW," Gen-Energija's executive director for finance, Kruno Abramovic, said in a statement on Tuesday.

The Krsko NPP, located in Slovenia near the border with Croatia, currently operates a Westinghouse pressurised light water reactor of 2,000 MW thermal power capacity. The operating company, Nuklearna elektrarna Krsko (NEK), is co-owned by Gen-Energija and Croatian power utility Hrvatska Elektroprivreda (HEP).

The financing costs are not included in the calculation and in the case of a weighted average cost of capital (WACC) of 2% in real terms, the average price of electricity from the power plant should be 66 euro per MWh, while for WACC of 3%, it should be 81 euro per MWh, Gen-Energija said.

The structure and sources of project financing will be identified and established before the final investment decision, anticipated in 2028, the Slovenian energy group noted.

The project for expansion of Krsko's capacity will provide a stable and reliable supply of electricity for at least 60 years and will have an outstanding effect on the Slovenian economy, creating an estimated 5,640 new jobs in ten years, the company added.

Gen-Energija is considering expanding the planned capacity of the projected second reactor at Krsko NPP to 2,400 MW from 1,100 MW to allow more companies to vie for the project, as only Westinghouse has offered to provide a unit of 1,100 MW, Gen-Energija CEO Dejan Paravan said in October.

The Krsko NPP generates some 40% of Slovenia's electricity output.

($ = 0.921871 euro)