The European Commission has approved a state aid package for the construction and operation of Poland's first nuclear power plant. The new source, with a planned capacity of up to 3,750 MW, is currently scheduled to come online in the second half of the 2030s and forms the cornerstone of Poland's strategy to significantly reduce emissions from electricity generation.
In September 2024, Poland notified the Commission of its intention to provide financial support to the state-owned company Polskie Elektrownie Jądrowe (PEJ) for the construction of a power plant in Lubiatowo-Kopalino. The project involves three new reactors with a capacity of 1,250 MW each and a total investment cost estimated at EUR 42 billion.
The support will consist of several components. The key component is a 40-year contract for difference (CfD), which is intended to ensure stable revenues independent of market price fluctuations. If prices fall below the strike price, the state will pay the difference. Otherwise, PEJ will pay back the difference. The package also includes an increase in equity capital covering approximately one-third of the costs and state guarantees for all debt that PEJ will use to finance the project.
In December 2024, the Commission launched an in-depth investigation to assess the adequacy and proportionality of the aid, its impact on the electricity market and its compliance with EU rules. During the investigation, it received a number of comments from third parties. Most of them supported the project and appreciated its importance for energy security and Poland's long-term decarbonisation plans.
The investigation led to adjustments to the measure. Poland reduced the duration of the CfD from 60 to 40 years and redesigned its structure to give the company more incentives to operate efficiently and respond to market signals. The new model rewards primarily the availability of the power plant, rather than the amount of electricity produced, which should limit undesirable effects on renewable energy sources.
The implementation price will be determined on the basis of a detailed discounted cash flow model, which will take into account state guarantees and capital increases and limit the total amount of support to the actual financial gap of the project. Mechanisms against overcompensation have also been introduced. If profits exceed what is necessary to achieve a market return, PEJ will share them with the state. Poland has also committed to regularly reviewing selected cost items to prevent uncontrolled growth in aid.
In order to prevent market distortions, at least 70% of the power plant's annual production must be sold on open exchange markets and the remainder only through transparent auctions. At the same time, PEJ must remain legally and functionally separate from other major players on the Polish energy market. On the basis of these adjustments, the Commission concluded that the aid complies with EU state aid rules.
gnews.cz - GH