Alina Oprea • 13 September, 2023 at 10:10 AM
Nuclearelectrica signed a Letter of Intent with the Three Seas Initiative Investment Fund to explore the possibility of collaboration in the renewable energy production sector in Romania, in order to achieve common strategic objectives. Nuclearelectrica, the state company that manages the Cernavoda nuclear power plant, currently contributes over 18% of nuclear energy to the total energy production and 33% to the total CO2-free energy production in Romania. The energy producer's investment projects are green investments and aim not only to achieve energy efficiency but especially energy security, energy independence, and consumer protection. Nuclear power generation capacities have no CO2 emissions, are available 24/7, have extremely low dependence on the climate factor, and are safe. The operation of units 1 and 2 has avoided the release of 205 million tonnes of CO2 since commissioning.
"Nuclearelectrica, which currently generates 33% of Romania's clean energy and has strategic investment projects that will increase its contribution to the generation of clean energy to approximately 66% in 2030, is looking for opportunities to further develop complementary projects, which to ensure an even greater increase in its contribution to the production of clean energy in Romania", informs the company in a statement.
The Three Seas Initiative Investment Fund (3SIIIF) is interested in further identifying and partnering in opportunities to support energy transition and energy security in the Three Seas Region.
To date, the Fund has made two investments in renewable energy (Energy Development GmbH and R.POWER SA) with significant development portfolios in the region, including Romania.
"The fund is not authorized to make investments in the nuclear sector and any partnership with Nuclearelectrica would be in a separate entity, focused on renewable energy assets," the statement states.
Romania has set very ambitious decarbonization objectives: reducing GHG emissions by 55% by 2030; reducing dependence on imports from 20.85% to 17.8% by 2030; phasing out up to 4.59 GWe of coal-fired power by 2032 and replacing it with clean energy sources.
"Nuclearelectrica, by operating the high-performance units 1 and 2 of the Cernavoda nuclear power plant, represents a strategic pillar for Romania's energy security. Through the partnership with the Investment Fund of the Three Seas Initiative for the production of renewable energy in Romania, we want to further expand our contribution to energy security, energy independence, and consumer protection in Romania", said Cosmin Ghiță, General Manager of Nuclearelectrica.
The national company Nuclearelectrica produces electricity, heat, and nuclear fuel and operates under the authority of the Ministry of Energy, The Romanian state holds 82.49% of the shares, and the other shareholders 17.50%, after the company was listed on the stock exchange in 2013. The CNE Cernavoda branch operates two units of CANDU nuclear power plants, which are two of the best-performing units among the more than 400 nuclear power plants in the world, a nuclear fuel plant and is in the process of achieving an integrated fuel cycle through the acquisition of a uranium concentrate processing line, in order to support the company's long-term investment projects.
In 2031, Romania will have an installed nuclear power capacity of 3262 MW, resulting from the operation of Units 1 and 2, the operation of Units 3 and 4 at Cernavoda, and the operation of small modular reactors, which will represent approximately 33% of the market share and approximately 66% of the total clean energy produced in Romania.
Nuclearelectrica has a major role in supporting the achievement of Romania's objectives, at the same time contributing to regional energy security by increasing Romania's nuclear energy production capacity until 2030, through strategic investment projects estimated at over €12 billion: the refurbishment of Unit 1, the putting into operation of Units 3 and 4, development of the project of small modular reactors, in cooperation with the American company NuScale Power. Nuclearelectrica's investment projects will contribute, with clean energy, to Romania's energy security, to socio-economic development, to the development of the nuclear industry, and to the training of a new generation of engineers, as well as to neighboring countries, including the Republic of Moldova, in order to achieve energy security and the achievement of decarbonization objectives.
The Three Seas Initiative was established by the presidents of Poland and Croatia, in cooperation with the presidents of the other 10 countries in the region. The founding act of 3SIIF was signed by the presidents of development banks in Poland (Bank Gospodarstwa Krajowego) and Romania (Exim Bank). Initial investors in the fund include development banks and government capital in the region.