Romania: Implementation of first SMR nuclear power plant to start in Doicesti

Nuclearelectrica shareholders have officially approved the Final Investment Decision (FID) for the Small Modular Reactor (SMR) project in Doicesti. The move takes Romania from the analysis phase to the implementation phase, replacing an old coal-fired power plant with a modern 462-megawatt nuclear power plant, WNN reports.

The project will use US NuScale technology with six modules, each producing 77 megawatts, and is estimated to ultimately create 200 permanent jobs, 1,500 in construction and over 2,300 in the supply chain and component manufacturing. The plant is designed for 60 years of stable operation, and the first module is scheduled to be on the grid in 2033.

Financing challenge: Between USD 6 and 7 billion

Although the investment decision has been made, Romanian Prime Minister Ilie Boloian was cautious in his statements to the media, emphasizing that the sum involved was a huge USD 6 to 7 billion. The next six months will be crucial for defining the financial structure and attracting additional investors. The US Exim Bank and DFC have already expressed interest in supporting the project in the amount of up to USD 4 billion.

Technology challenge?

Incidentally, this is not about converting a thermal power plant to nuclear by replacing the Steam Supply System, which is one of the promises made by the nuclear industry in recent years, the Nuklearna perspektiva portal writes. There is the serious question of the economics of such potential projects: building new turbines and generators is not such a large part of the total cost of a new installation of any power plant, and leaving old elements entails an increased cost of frequent overhauls. The portal writes that they believe that this practice will not be commercial.

But the challenge also lies in the company that is supposed to provide the technology: NuScale. This company was one of the first to develop small modular reactors in the early 2000s, but it has not capitalized on its pioneering work. In November 2014, NuScale announced that it would build the first US SMR at Idaho National Laboratory. The facility was intended for Utah Associated Municipal Power Systems (UAMPS), a subdivision of the state of Utah, as part of the Carbon Free Power Project (CFPP).

As of 2021, however, 8 cities have withdrawn from the CFPP. In July 2021, the proposal was reduced to 6 reactors, and the expected electricity price was increased to USD 58 per megawatt-hour. In January 2023, the CFPP approved a new budget and financing plan, setting a target price of USD 89 per megawatt-hour. Projected construction costs have increased to USD 9.3 billion for a 462-megawatt capacity from USD 3.6 billion for 720 megawatts in 2020 – a huge increase. In November 2023, UAMPS announced that the project was unlikely to have enough subscriptions to continue due to rising costs, and UAMPS and NuScale jointly decided to cancel the project.

NuScale has not had much commercial success since then, and it is very uncertain whether their product will ever be commercialized.

Nuclearelectrica

Government of Romania

NuScale

Doicesti

construction of modular nuclear power plant

SMR