Commission greenlights State aid for Poland’s first nuclear power plant
The Commission has approved a support package for the construction and operation of Poland’s first nuclear power plant, a key project in the country’s plans to decarbonise its electricity sector. Poland will assist the state-owned company Polskie Elektrownie Jądrowe (PEJ) in building three reactors in Lubiatowo-Kopalino, with a combined capacity of up to 3 750 MW and an estimated investment cost of EUR 42 billion. The support will include a 40-year two-way contract for difference ensuring stable revenues, an equity injection covering around 30% of project costs, and State guarantees on all project-related debt.
The Commission’s formal investigation, launched in December 2024, examined whether Poland’s support for its first nuclear power plant was appropriate, proportionate, and compatible with EU State aid rules. Following comments from third parties that largely supported the project, Poland introduced several key revisions to address the Commission’s concerns. These included shortening the contract-for-difference (CfD) period from 60 to 40 years, redesigning the CfD to remunerate availability rather than output, and calibrating the strike price strictly to the project’s funding gap using a detailed financial model.
Poland also introduced safeguards to prevent overcompensation, including profit-sharing and regular cost reviews, as well as strict trading obligations requiring at least 70% of electricity to be sold on open markets and ensuring PEJ’s independence from major market players. With these commitments, the Commission concluded that the measure complies with EU State aid rules.
For more information, see the Commission’s PR.