Press release

Bucharest, 28 September 2017

SN Nuclearelectrica SA announces that during the Extraordinary General Meeting of SNN Shareholders of 28.09.2017, the initiation of Phase I of the Strategy for the Refurbishment Project of Cernavoda NPP Unit 1 was approved. The item was introduced on the agenda of the EGMS at the request of the majority shareholder of SNN, the Ministry of Energy.

Phase I of the Refurbishment Project will include:

1. Activities necessary to ensure the operation of Unit 1 for a period of 30 years, meaning the extension of the operating hours at nominal power in addition to the 210.000 hours initially estimated by design. “Based on studies and international experience of other CANDU 6 type nuclear power plants and also on the inspections carried out by SNN and their results aimed at optimizing the production of Cernavoda NPP Unit 1, with the observation of the same nuclear safety standard, the extension of the operating period beyond the initial estimated duration by design certifies first and foremost the quality of the operating thus far and offers the premises for obtaining clear advantages for the project, the company and the contribution of a sustainable, reliable energy source in the national power system” – Cosmin Ghita, CEO.
2. Project organization activities at the beginning of 2018 when organizational and logistical modification will be performed based on the results of the study contracted by SNN and the completion of support documentation necessary for the preparation of the Feasibility Study.
3. Further development of the necessary evaluation in view of identifying all activities which must be included in the scope of the refurbishment project.
4. The Feasibility Study, including its submission for the approval of the shareholders, in 2021. The Feasibility Study will incorporate all the results of the technical studies and safety analysis, in such a manner as to allow the clear definition of the project, from the technical and financial point of view. In this respect, the majority of these studies and technical and safety analysis can only be performed, objectively, by specialized engineering companies, often specialized on certain punctual segments, aspects which exceed the competences of companies that usually draft feasibility studies for investment projects (otherwise stated, for the preparation of the Feasibility Study specialized input is required from nuclear engineering companies, for which reason the project was approached in two phases and, in this context, the drafting of the Feasibility Study was established for a subsequent phase, as an objective necessity). Currently, a series of studies is underway, relevant data regarding certain equipment/structures system and components being obtainable only during planned outages of Unit 1. In this context, the initiation of the Feasibility Study without having all the available entry data can lead to an incomplete and insufficiently substantiated document.

“The approval by the shareholders of the first phase of the refurbishment project of Unit 1 signifies the assurance of the continuation of the project for SNN, without delays, with the observation of the time lime  for each stage and sub stage.

The extension of the number of operating hours until 30 years of operation, based on the international experience, adapted to the technical data of Cernavoda NPP, will determine that the effective refurbishment outage of Unit 1 take place during December 2026 – December 2028. This obviously signifies a major gain for SNN in terms of maintaining the energy production of Unit 1 until 30 years of initial operation, the opportunity to accumulate additional funds necessary for the financing of the project, as well as for the national energy system in terms of the contribution to ensuring security and stability of supply.

The refurbishment of unit 1 is currently the priority project of SNN, as it is fully managed by the company, and at the same time, the largest investment project of any energy company in Romania, a project which will ensure 30 more years of operation and production, at less than half the cost of building a new CANDU nuclear unit. It is a major investment carried out exclusively by SNN which meets both the necessities of the energy system as well as the decarbonization targets” – Cosmin Ghita, CEO.

Details regarding the refurbishment project of Cernavoda NPP Unit 1 can be accessed on SNN’s website in the Invest Relations section, GMS related information, EGMS of 28.09.2017 as well as on BVB website, SNN reporting section.

Cosmin Ghita

CEO