EU Approves State Aid for Poland’s First Nuclear Power Plant

 

The European Commission has formally approved state aid support for the construction of Poland’s first nuclear power plant, clearing a major regulatory hurdle for the country’s long-term energy transition strategy.


🔹 Project Overview

Poland plans to build a nuclear facility at Lubiatowo-Kopalino, on the Baltic coast, featuring three AP1000 reactors with a combined capacity of 3.75 GW.
The project will be developed by the state-owned company Polskie Elektrownie Jądrowe (PEJ).


🔹 Structure of the State Aid

The approved support package includes:

  • Direct government equity investment

  • State-backed loan guarantees

  • A long-term Contract for Difference (CfD) mechanism to stabilize electricity revenues

This structure aims to reduce financial risk while ensuring predictable electricity pricing over the plant’s operating life.


🔹 Why EU Approval Matters

Under EU competition rules, public funding for large infrastructure projects must demonstrate:

  • Necessity

  • Proportionality

  • Clear public benefit

The Commission concluded that Poland’s nuclear project supports climate objectives, enhances energy security, and does not cause undue market distortion.


🔹 Strategic Significance

Poland remains one of Europe’s most coal-dependent power producers.
Nuclear energy is expected to play a central role in:

  • Reducing carbon emissions

  • Replacing aging coal capacity

  • Strengthening long-term energy security

The first unit is expected to enter operation in the mid-2030s.


🧠 Commentary

The EU’s approval sends a strong signal that nuclear power is being recognised as a pragmatic component of Europe’s energy transition, particularly for countries facing structural dependence on coal.

Poland’s project may serve as a reference model for other nations seeking a stable, low-carbon baseload solution.


🔗 Source