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:
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Direct government equity investment
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State-backed loan guarantees
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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:
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Necessity
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Proportionality
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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:
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Reducing carbon emissions
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Replacing aging coal capacity
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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