A study by the Romanian Economy and Trade ministry has indicatedthat its power sector needs an investment of $10.4 billion by 2015 to carry out essential modernisation and expansion.

The study suggested that $1.5 billion should be invested by 2005 for rehabilitation of power production facilities. In addition to this:

• $1.5 billion should be invested in cogeneration plants.

• $480 million should be spent on nuclear power production.

• $450 million should be invested in hydropower plants.

• Power distribution needs an investment of $628 million by 2005, and an additional $1.8 billion by 2015.

• An investment of $491 million in the transmission grid by 2005 is necessary, with an additional $1.7 billion by 2015.

The ministry said that its most important objective is to complete the second and third reactors at Cernavoda, each with a capacity of 707 MWe. Cernavoda 1 produces

750 MWe, accounting for 10% of the country’s annual electricity output.

The study recommends that

1280 MWe of inefficient power production facilities should be shut down by 2005. Most of the plants in question fire lignite or hard coal. Shutting these plants and replacing them by modern, more efficient plants would reduce emission levels.