Cernavoda nuclear power project in balance after massive pull-out

Four European energy giants have pulled out of constructing Romania’s nuclear power station Cernavoda’s third and fourth reactors

February 2011 - From the Print Edition

In a blow to the Government’s long-term energy strategy, France’s GDF Suez, Germany’s RWE, Spain’s Ibredrola and Czech Republic’s CEZ will no longer participate in the Cernavoda nuclear project in Romania.
The long-delayed four billion Euro plan to build two new reactors is now in the balance as the Government was hoping to boost private financing for the project.
GDF Suez, RWE and Iberdrola – who together own 24.5 per cent of the project - cited “economic and market uncertainties surrounding this project” related mostly to the “present financial crisis”, which will not allow the funding necessary for the new project.
In late 2010 CEZ sold its 9.15 per cent stake in Cernavoda back to state-owned energy company Nuclearelectrica, which now has a 60.15 per cent share in the project company EnergoNuclear.
In May then-Economy Minister Adriean Videanu said Nuclearelectrica would reduce its percentage to between 20 per cent and 34 per cent, while new Minister Ion Ariton has also indicated the percentage will be dropped to a minority stake.
As we went to press, the remaining private investors in the project, Italy’s energy group Enel (with 9.15 per cent) and Indian steelmaker ArcelorMittal (with 6.2 per cent), had stated their commitment to the project.