Commission opens formal investigation into Romanian State aid for Cernavodă nuclear reactor
The Commission has opened an in-depth investigation to assess whether Romania’s planned public support for the refurbishment and lifetime extension of Unit 1 of the Cernavodă nuclear power plant complies with EU State aid rules. The EUR 3.2 billion project aims to extend the operation of the 706 MW reactor by an additional 30 years beyond its expected 2027 lifetime. The measure is intended to safeguard security of supply and contribute to EU decarbonisation objectives.
The support would be granted to Nuclearelectrica (SNN), the state-controlled operator of the plant, through a combination of a EUR 600 million direct grant, State-backed loan guarantees, a 30-year two-way contract for difference (CfD), and a regulatory risk protection mechanism.
While the Commission’s preliminary assessment recognises the necessity of the project and its contribution to an economic activity, it has raised concerns regarding the compatibility of the aid package. In particular, doubts remain as to the proportionality of the combined support measures and whether they strike the right balance between risk mitigation and preserving market incentives, without unduly shifting risks to the State.
The Commission is also assessing the potential distortive effects on competition, notably in relation to the design of the CfD and the risk of indirect benefits being passed on to market participants or consumers. Additionally, the compatibility of the measure with broader EU law, including the Electricity Regulation, will be examined.
For more information, see the Commission’s PR.