THE NUCLEAR POWER IN ROMANIA F. Glodeanu, G. Andrei

1. THE NUCLEAR POWER IN ROMANIAF. Glodeanu, G. Andrei New Cooperation Strategies in the Geopolitical and Economic European Space – UE 27 Thessaloniki, June 7th - 8th 2007

2. SOCIETATEA NATIONALA NUCLEARELECTRICA • NUCLEAR FUEL FABRICATION • Domestic natural uranium • Imported Zircalloy components • SAFE AND EFFICIENT OPERATION OF UNIT 1 • Commercial operation starting with December 2, 1997 • Gross Output: 706.5 MWe

3. POWER GENERATION IN 2005 TOTAL – 59,686 GWh (gross) Nuclear 5,554 GWh Coal Hydro 23,615 GWh 20,285GWh 9% 40% 34% 17% Oil & Gas 10,232GWh

4. NUCLEAR FUEL • The Nuclear Fuel Plant - Pitesti is providing the fuel for the Cernavoda –NPP • The fuel has excellent performances 0.086% 0.042% 0.011% 0.011% 0 % 0 % 0% 0 % 0 %

5. WASTE MANAGEMENT AND DECOMISSIONING • Operational radioactive wastes are safely stored on site in a temporary storage. • According to the national strategy a Low and Medium Level Waste Repository shall be build in Saligny near Cernavoda NPP, under ANDRAD responsibilities. • The High Level Radioactive Wastes Repository shall be developed later, taking into account the intermediate storage • For decommissioning the plant is performing specific studies to develop the optimal solution. • Specific legislation for radioactive waste management and decommissioning , including provisions for financial resources was approved by the Romanian Parliament in 2006.

6. THE GOVERNMENT ENERGY STRATEGY • Romania is closely observing the energy policy of the European Union. • The Ministry of Economy and Finance is drafting a new national energy strategyfor the next 15 years. • The strategy considers the importance of improving the energy efficiency, environment protection and the optimum utilization of natural resources. • The gross power generation is forecasted to increase from 62.7 TWh in 2007 up to 100 TWh in 2020. • The new energy strategy includescompletion of Units 3 and 4 of Cernavoda NPP and clearly indicate its long-term commitment to nuclear energy

7. THE ROLE OF NUCLEAR POWER • As a proven and safe technology, nuclear power has an important role to play in terms of ensuring secure electricity generation without any CO2 emissions. • Nuclear power is an excellent source of base-load power • Romania has a well-developed nuclear infrastructure: • Heavy water plant • Nuclear fuel fabrication plant • Technically qualified and experienced staff • Domestic uranium resources

8. UNITS 3 & 4 PROJECT • The feasibility study confirmed the technical and economical feasibility of the Project • The unique business proposition of the Project resides in: • The cost advantage (the levelised unit energy cost for this Project is lower than other forms of electricity generation), • Heavy water and nuclear fuel locally available • Local experience and competency in constructing and operating other units, • Public support, and • Safe, western technology.

9. CONSTRAINTS • NO Governmental financial support • NO sovereign guaranties for loans • NO power purchase agreement with state entities

10. THE MODEL • Joint venture set up by many shareholders, including SNN (the so-called “Finnish model”), no majority shareholder; • SNN will contribute to the equity with the existing assets; • Heavy water and nuclear fuel are to be provided from domestic sources; • Shareholders will receive the power at cost in proportion to their investment in the project;

11. ADVANTAGES OF THE MODEL • The model is already accepted by the European Union (used in Finland) and comply with the regulations of the liberalized electricity market • Financing sources (initial equity and loans) provided by investors. • The “legitimate” needs of the intensive energy industry – representing 35% of Romania’s GDP – can be solved (as the European Union recommends in the Electricity Green Book, chapter 2.1 (v))

12. FUTURE STEPS • Actions scheduled for 2007: • Binding offers to be requested from potential investors; • Preferred investors to be selected • Negotiations with selected investors, and • Investors agreement is to be executed. • Once the investors agreement is executed the process to conclude agreements with the other key stakeholders such as financiers and contractors should commence. • The ultimate goal is to set-up the commercial and financial frame of the project and start works in 2008.

13. CONCLUSIONS As a proven and safe technology, nuclear power has an important role to play in terms of ensuring secure base load electricity generation without any CO2 emissions. The energy strategy of the Romanian Government includescompletion of Units 3 and 4 of Cernavoda NPP and clearly indicate its long-term commitment to nuclear energy Romania has the infrastructure for implementation of new nuclear power projects.

14. Thank you for the attention !