The European Commission has opened (18 December) an in-depth investigation into Poland’s planned €45 billion nuclear power plant in Lubiatowo-Kopalino to assess compliance with EU State aid rules. The project, led by the State-owned company Polskie Elektrownie Jądrowe (PEJ), is set to deliver up to 3750 MW of electricity and aims to bolster Poland’s energy security, decarbonize its power sector, and diversify its energy mix.
Key Concerns
Poland plans to fund the plant with:
- A €14 billion equity injection (30% of project costs).
- State guarantees covering all debt financing.
- A 60-year two-way contract for difference (CfD) ensuring revenue stability.
While the Commission recognizes the need for public support to make the project viable, it has raised concerns about:
- Proportionality: Whether the combined aid measures provide more support than necessary, particularly given the 60-year CfD duration.
- Competition Impact: Whether the aid distorts the electricity market, hinders renewables integration, or passes undue costs onto consumers.
Next Steps
The investigation allows Poland and third parties to submit comments while the Commission determines if these concerns are valid. The probe does not prejudge the final outcome.
“The public support Poland plans for its first nuclear plant must comply with State aid rules to ensure fair competition and minimize market distortions,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition.
Background
Under EU rules, Member States can support nuclear energy if aid is necessary, proportionate, and aligns with the common interest. This investigation will also evaluate the project against new electricity market design principles introduced in July 2024.
Details of the decision will be published on the Commission’s State aid register under case number SA.109707 once confidentiality concerns are addressed.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_6437
