Romania’s state-controlled nuclear energy company Nuclearelectrica has defended its ambitious small modular reactor (SMR) project at Doicești. The company is responding to growing doubts from senior government officials, including Prime Minister Ilie Bolojan, regarding the justification for financing this undertaking.

Multi-Billion Dollar Project Raises Questions

The planned SMR project at Doicești is estimated to cost between USD 6 and 7 billion and generate 462 MW of capacity. This amount is comparable to the estimated EUR 7 billion needed to build Units 3 and 4 at the Cernavodă nuclear plant, which would collectively deliver 1,400 MW of capacity.

This very comparison is fueling debate within the government. Prime Minister Ilie Bolojan argues that investments in refurbishing Unit 1 at Cernavodă (to extend its operational lifespan) and expanding Units 3 and 4 are more cost-effective than building mini-reactors at Doicești.

The timeline in which the projects can be realized further highlights the difference. Unit 1 at Cernavodă – a 700 MW reactor – is scheduled to undergo a comprehensive overhaul aimed at extending its operational life, starting in 2027. The estimated cost of this work is approximately EUR 2 billion.

Over EUR 200 Million Already Spent on Preliminary Studies

The Doicești project is already at an advanced stage of preparation. More than EUR 200 million has already been spent on preliminary studies. The next phase – the pre-EPC (engineering, procurement, and construction) phase – will consume an additional USD 600 million and include further technical and preparatory studies before actual construction begins.

Questions about the cost-effectiveness of such spending have become unavoidable. However, Nuclearelectrica rejects arguments based solely on cost calculations.

„Energy Mix Structure Is Not Just a Matter of Price”

In response to questions about the feasibility of such a large investment, Nuclearelectrica emphasized that a country’s energy mix structure should not be determined solely by the lowest investment cost criteria, but rather should account for broader strategic considerations.

„A country’s energy mix is not structured based on criteria related to the lowest investment cost, but for reasons of strategic and even geopolitical importance, as well as available resources,” the company stated.

This argument points to something more than simple financial calculation. Nuclearelectrica suggests that the decision to build modular reactors at Doicești should be evaluated in the context of diversifying energy sources, achieving energy independence, and ensuring Romania’s strategic security.

Two Projects, Two Different Financing Structures

Nuclearelectrica also emphasizes that both projects – Cernavodă modernization and the Doicești SMR – do not compete for the same financial resources.

The refurbishment of Unit 1 at Cernavodă will be financed through a combination of:

• The company’s own funds
• Syndicated bank loans
• Loans backed by Export Credit Agencies (ECAs)

In contrast, the Doicești SMR project will rely on a different financing structure, which will include:

• Attracting new investors
• Loans backed by ECAs
• Grants
• Other external sources of financing

Government Support Amid Growing Doubts

Nuclearelectrica is majority-owned by the Romanian state. Recently, Energy Minister Bogdan Ivan issued instructions to ministry representatives to support the continuation of the SMR project. This is a clear signal of political backing for this undertaking.

However, the ongoing debate reveals increasing scrutiny of large-scale energy investments at a time when the government is under fiscal consolidation pressures and must compete for resources between various infrastructure priorities.

Broader Context: Energy and Geopolitics

Nuclearelectrica’s response sheds light on a fundamental shift in energy policy approaches. In traditional economic thinking, investment decisions have been primarily based on return on investment (ROI) and total cost of ownership (TCO).

However, energy – particularly nuclear energy – is increasingly being viewed by governments as a matter of national security and geopolitical independence, not merely economics. In the context of Middle East tensions and the challenges of energy transition, small modular reactors can be seen as a tool that allows Romania greater flexibility and energy security.

A small modular reactor can be installed at various locations and has lower infrastructure requirements than traditional reactors – making it attractive from an energy security strategy perspective.

Outlook: Romania Needs Both Tradition and Innovation

It appears that Romania will need both traditional investments in modernizing existing reactors and experimentation with new technologies.

The question remains: will the government find a way to finance both projects simultaneously? And if not – which project will be the priority? The answer to this question will depend on whether Romania’s decisions are driven purely by economic considerations or by broader strategic and geopolitical factors.

For now, one thing is certain – the debate over the future of Romania’s energy sector is only just beginning.