You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Romania's Nuclearelectrica extends talks with China's CGN for new NPP units

Romania's Nuclearelectrica extends talks with China's CGN for new NPP units Author: Nuclearelectrica Licence: All Rights Reserved.

BUCHAREST (Romania), July 21 (SeeNews) - Nuclearelectrica [BSE:SNN], the operator of Romania's sole nuclear power plant (NPP) Cernavoda, said on Thursday it has extended negotiations with China General Nuclear Corporation (CGN) for the construction of reactors 3 and 4 until end-August.

The agreement regarding negotiations extension also includes the possibility of each party to cease the memorandum of understanding without any compensations in case an agreement is not reached by end-August, the company said in a bourse filing.

In December, Nuclearelectrica said it expects to set up a joint venture with CGN in 2016 and begin construction of a pair of new units at the plant, then estimated at 6 billion euro ($6.5 billion), in two to three years.

Under the memorandum of understanding on the project, the Chinese investor will hold at least 51% of the joint venture company, while Nuclearelectrica will hold at least 30%.

The Cernavoda NPP already operates two CANDU 6 nuclear reactors of 700 MW each, which came into service in 1996 and 2007. Combined, they are the largest power producer in the country, accounting for about a fifth of Romania’s electricity supply.

Adding a second pair of similar reactors at the plant is a priority for Romania’s energy security and the project is considered the optimum solution for covering the deficit that is expected to occur after 2020. 

Nuclearelectrica's net profit rose 13% on the year in 2015 to 194.8 million lei ($48 million/ 43.5 million euro), while total revenues fell 2% to 1.75 billion lei.

Its shares were trading 0.19% up at 5.19 lei on the BVB at 1255 CET on Thursday.

(1 euro=4.4700 lei)

Compare