popular articles

State Aid for Poland’s First Nuclear Power Plant: EU Launches Investigation

The European Commission opens an investigation into Poland's public support for its first nuclear project, estimated at €45 billion, to ensure compliance with electricity market competition rules.

Please share:

The European Commission has announced the opening of an investigation into the financial support provided by Poland for its first nuclear power plant project, planned in Lubiatowo-Kopalino in the northern region of the country. This project aims to be operational by 2030, with an estimated cost of €45 billion for a capacity of 3,750 megawatts (MW).

Poland, still heavily reliant on coal to produce its electricity, views nuclear energy as a strategic solution to diversify its energy mix and reduce greenhouse gas emissions. The European Commission acknowledges that this project could strengthen electricity supply security and accelerate the energy transition. However, it wants to examine whether the state aid complies with European rules to avoid any distortion of competition.

The Aid Mechanisms in Question

Poland is planning three forms of financial support for the state-owned company Polskie Elektrownie Jadrowe (PEJ), which is managing the project:

– A capital injection of €14 billion.
– Public guarantees covering 100% of PEJ’s debts.
– A “contract for difference,” guaranteeing a stable income for electricity produced during the 60 years of expected operation.

These measures, while deemed essential by Warsaw to launch this ambitious project, raise concerns in Brussels, particularly regarding the risk of excessive aid.

Regulatory and Strategic Challenges

According to European Commission Vice President Teresa Ribera, it is crucial to ensure that these public subsidies do not disadvantage other market players. While the Treaty on the Functioning of the European Union (TFEU) guarantees member states the freedom to choose their energy mix, national measures must still comply with community competition rules.

Ultimately, Poland aims to construct three nuclear sites, each equipped with three reactors, for a total capacity of 15 gigawatts (GW). These installations could account for up to 30% of Poland’s energy mix.

Decarbonization and Energy Sovereignty

This project comes as Poland seeks to reduce its dependence on coal, which still constitutes a majority of its electricity production. Nuclear energy, seen as a lever for decarbonization, also plays a key role in national and regional energy security. However, the European evaluation will need to ensure that public support strikes a balance between fostering development and maintaining fair competition.

The Commission’s decision on the compatibility of Poland’s subsidies with European rules is expected to have significant implications not only for Poland but also for other member states considering new nuclear projects.

Register free of charge for uninterrupted access.

Publicite

Recently published in

A radioactive steam leak detected in the reactor building of Flamanville unit 1 forces EDF to postpone its restart by one month, according to the Nuclear Safety and Radiation Protection Authority.
French firm Framatome has been selected to modernise control systems at Switzerland’s Leibstadt nuclear plant, as part of a strategic investment aiming to extend its operation through 2045.
French firm Framatome has been selected to modernise control systems at Switzerland’s Leibstadt nuclear plant, as part of a strategic investment aiming to extend its operation through 2045.
The U.S. Department of Energy reopens a $900M envelope to finance the construction of third-generation small modular reactors, aiming to rapidly expand national power capacity.
The U.S. Department of Energy reopens a $900M envelope to finance the construction of third-generation small modular reactors, aiming to rapidly expand national power capacity.
HYLENR Technologies has signed a memorandum of understanding with TakeMe2Space to test a low-energy nuclear reaction power solution aboard satellites designed for orbital computing.
HYLENR Technologies has signed a memorandum of understanding with TakeMe2Space to test a low-energy nuclear reaction power solution aboard satellites designed for orbital computing.
Japanese researchers have assembled a rechargeable battery harnessing the chemical properties of uranium, aiming to convert stored depleted uranium into a strategic energy storage resource.
The French government is pressing EDF and industrial players to reach a pricing agreement by summer, amid ongoing tensions over nuclear supply contracts.
The French government is pressing EDF and industrial players to reach a pricing agreement by summer, amid ongoing tensions over nuclear supply contracts.
Two small modular reactor developers begin preliminary engagement with the US nuclear authority, ahead of filing applications for distinct projects targeting industrial use cases.
Two small modular reactor developers begin preliminary engagement with the US nuclear authority, ahead of filing applications for distinct projects targeting industrial use cases.
Fortum continues preparations for new nuclear capacity in Finland and Sweden, selecting three suppliers after a two-year feasibility study.
Fortum continues preparations for new nuclear capacity in Finland and Sweden, selecting three suppliers after a two-year feasibility study.
NRG-Pallas will conduct irradiation tests necessary for qualifying materials and fuel of Kairos Power's modular reactor, a critical prerequisite for regulatory approval in the United States.
Tokyo Electric Power Company will begin next week the removal of thousands of contaminated sandbags, stored since 2011 in the Fukushima Daiichi basements, using robots designed for high-radiation environments.
Tokyo Electric Power Company will begin next week the removal of thousands of contaminated sandbags, stored since 2011 in the Fukushima Daiichi basements, using robots designed for high-radiation environments.
Welding of the main reactor for Egypt’s El Dabaa nuclear power plant has been completed in Russia, marking a major milestone in the development of the country's first civilian nuclear programme.
Welding of the main reactor for Egypt’s El Dabaa nuclear power plant has been completed in Russia, marking a major milestone in the development of the country's first civilian nuclear programme.
Kazakh President Kassym-Jomart Tokayev has established a new agency to oversee nuclear energy, appointing Almassadam Satkaliyev as its head. This structure aims to enhance the country’s energy security and support its long-term nuclear ambitions.
Kazakh President Kassym-Jomart Tokayev has established a new agency to oversee nuclear energy, appointing Almassadam Satkaliyev as its head. This structure aims to enhance the country’s energy security and support its long-term nuclear ambitions.
The US Department of Energy allocated a $57 million loan to Holtec International to support the relaunch of the Palisades nuclear plant, which has been closed since 2022, to ensure compliance with NRC safety standards.
Orano and Navoiyuran have signed a strategic agreement for the industrial development of the South Djengeldi uranium deposit in Uzbekistan, with the entry of Japanese company ITOCHU Corporation as a minority partner.
Orano and Navoiyuran have signed a strategic agreement for the industrial development of the South Djengeldi uranium deposit in Uzbekistan, with the entry of Japanese company ITOCHU Corporation as a minority partner.
Chubu Electric starts dismantling reactors at Hamaoka plant, marking a turning point in the management of its nuclear sector as Japan plans to gradually reintroduce nuclear energy into its energy mix.
Chubu Electric starts dismantling reactors at Hamaoka plant, marking a turning point in the management of its nuclear sector as Japan plans to gradually reintroduce nuclear energy into its energy mix.
President Emmanuel Macron has announced an additional delay for the commissioning of the first EPR2 reactors, now set for 2038 instead of 2035. This decision was made during a meeting dedicated to the nuclear program.
President Emmanuel Macron has announced an additional delay for the commissioning of the first EPR2 reactors, now set for 2038 instead of 2035. This decision was made during a meeting dedicated to the nuclear program.
Engie has finalized a ten-year extension agreement with the Belgian state for the Doel 4 and Tihange 3 nuclear reactors, including a financial responsibility transfer related to spent fuel, following recent approval by the European Commission.
Tests on the concrete of the EPR2 Penly seawall have raised doubts about its compliance with safety standards, according to Mediapart and Reporterre. EDF and Eiffage contest these claims, asserting that the material meets technical requirements.
Tests on the concrete of the EPR2 Penly seawall have raised doubts about its compliance with safety standards, according to Mediapart and Reporterre. EDF and Eiffage contest these claims, asserting that the material meets technical requirements.
On Monday, President Emmanuel Macron will chair a Nuclear Policy Council focused on small modular reactors (SMRs) and uranium supply, within a global context of renewed interest in nuclear energy.
On Monday, President Emmanuel Macron will chair a Nuclear Policy Council focused on small modular reactors (SMRs) and uranium supply, within a global context of renewed interest in nuclear energy.
A group of technology and energy companies, along with 31 countries, has signed a pledge to triple global nuclear capacity by 2050, supporting a strategic expansion of this energy source.
A group of technology and energy companies, along with 31 countries, has signed a pledge to triple global nuclear capacity by 2050, supporting a strategic expansion of this energy source.
HD Hyundai and TerraPower have entered into a strategic partnership to optimise the manufacturing of Natrium reactor components. This collaboration aims to structure an industrial supply chain to accelerate their global deployment.
KHNP and Samsung C&T have signed an agreement to collaborate on international nuclear projects, aiming to strengthen their global competitiveness, particularly in the rapidly growing Asia-Pacific market.
KHNP and Samsung C&T have signed an agreement to collaborate on international nuclear projects, aiming to strengthen their global competitiveness, particularly in the rapidly growing Asia-Pacific market.
The International Atomic Energy Agency has begun an assessment visit to the Rooppur nuclear power plant, Bangladesh’s first facility, 90% financed by Russia. The inspection focuses on site safety ahead of the scheduled fuel loading in 2025.
The International Atomic Energy Agency has begun an assessment visit to the Rooppur nuclear power plant, Bangladesh’s first facility, 90% financed by Russia. The inspection focuses on site safety ahead of the scheduled fuel loading in 2025.
Orano has secured a €400 million loan from the European Investment Bank to finance the expansion of its Georges Besse II uranium enrichment plant at Tricastin, aiming to increase its capacity by 30% by 2028.
Orano has secured a €400 million loan from the European Investment Bank to finance the expansion of its Georges Besse II uranium enrichment plant at Tricastin, aiming to increase its capacity by 30% by 2028.

Advertising