Chinese utility China General Nuclear (CGN) filed a non-binding bid to partner with Romania's state-owned nuclear power producer Nuclearelectrica to build two reactors at its site on the river Danube, the Romanian firm's manager said on Tuesday.
Nuclearelectrica had initially planned to build the two reactors, estimated to cost a combined 6 billion euros ($7.73 billion), in partnership with six European energy firms. Those firms withdrew one by one from the project between 2010 and 2013, feeling the impact of Europe's debt crisis.
The power producer has been looking for replacements ever since, and had signed several letters of intent and cooperation with Chinese energy firms.
CGN was the only prospective investor to file an offer by a Sep. 8 deadline, Nuclearelectrica manager Daniela Lulache told a news conference.
"The qualified investor fully meets the requirements ... both from a standpoint of technical and nuclear safety standards and for its capacity to finance such a project," Lulache said.
No financial details were given, but CGN has until Sep. 24 to file a binding bid and a price offer for a majority stake in the joint company that will build the two reactors, Lulache said.
She hopes to sign a final contract by the end of the year. Construction would take about six years.
Lulache said the Romanian government would likely have to approve price or profit guarantees for the power produced by the two reactors, similar to what Britain proposes to give to a consortium led by French state-controlled utility EDF to build two nuclear plants in Hinkley Point.
The Hinkley Point power project, in which CGN also has a stake, proposes guaranteeing a power price for the electricity it produces. In Romania, the details of the guarantees have yet to be decided.
The European Commission would need to sign off on any state aid that is provided.
Nuclearelectrica already has two 706 megawatt reactors, accounting for roughly a fifth of Romania's power production. They use Candu technology, from Canada's Candu Energy, owned by SNC Lavalin Group, as would the two future reactors.
