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Nuclearelectrica- Accord to be reached with China Nuclear for units 3 and 4
Nuclearelectrica estimates that by the end of the year it will reach an accord about the construction of units 3 and 4 of Cernavoda plant with the Chinese group General Nuclear Power Corp, the winner of the tender organized by the Romanian state in 2014.
The Chinese company was the only participant in the tender. The project is for the moment evaluated at 6.45 billion euros, but the feasibility study will be reconsidered.
At present, the two companies are negotiating the memorandum on the implementation of the project.
This memorandum represents the base of the future development of the project, and negotiations are essential for an advantageous development of a robust project, able to fully answer complex needs. Negotiations reflect the importance of this stage of the selection procedure. Both parties understand and take action to obtain a solid project, advantageous for the long term needs of the Romanian state. We want a project answering the energy policy changes of the European Commission, taking into account consumer needs and even correcting certain market malfunctions counter productive both for companies and consumers. We estimate that we will reach an accord until the end of the year, the next stage being the approval of the memorandum by AGA SNN and establishing the Investors Accord and the Constitutive Document for the new company, the joint venture in which the selected investor will own at least 51% of shares and SNN will contribute in kind with the shares it already owns and should be capitalized, Nuclearelectrica informs.
Plams for the two reactors date since communist times. The state seelcted in 2007 6 investors for reactors 3 and 4- RWE (Germany), CEZ (Czech Republic), GDF Suez (France), Enel (Italy), Iberdrola (Spain) and Arcelor Mittal Romania which withdrew from the project one by one.
The two existing reactors ensure 18% of the overall energy output in Romania. They have an initial life span of 30 years which can be extended by another 25 years.
Nuclearelectrica had in 2014 a gross output of 11,675 GWh, a net output of 10,754 GWh for a capacity factor of 94.44%. The business figure and net profit are 1.796 billion lei and 133 million lei in 2014.
SNN investments for 2015 are oriented towards the constant strengthening of nuclear security functions, the continuation of works for the Intermediate Burnt Fuel Deposit, and the expansion of the physical protection system.