The European Commission has opened an investigation to determine if Poland’s planned public support for a nuclear power plant in Lubiatowo-Kopalino aligns with EU State aid rules. After a preliminary assessment of Poland’s application, submitted in September, the Commission will conduct a more in-depth review of the proposed aid’s compliance with European regulations. Polish Deputy Minister of Industry Wojciech Wrochna stated that this review marks a significant step forward for the strategic project.
“We have a common goal with the European Commission, which is to work out a solution that will allow for financing the project and ensuring low electricity prices for recipients,” said Wojciech Wrochna, quoted in the ministry’s press release.
“We are convinced that a fruitful dialogue will allow us to address the doubts about the Commission’s services regarding some of the solutions we have adopted, and next year, we will reach a satisfactory compromise in the form of a decision on the compatibility of the aid granted with the EU internal market,” the Minister emphasised.
Under the Treaty on the Functioning of the European Union (TFEU), Member States can determine their energy mix, exploit energy resources, and structure their energy supply. Promoting nuclear energy is a national decision.
State aid for nuclear energy is evaluated under Article 107(3)(c) of the TFEU, which permits support for specific economic activities if necessary, proportionate, and does not adversely affect trading conditions.
“The public support that Poland plans to grant for its first nuclear power plant needs to be assessed by the Commission to make sure that it is in line with State aid rules, which aim to preserve competition within the internal market. According to the Competition rules, we will also evaluate the impact on the EU’s internal energy market. As usual, all interested parties can submit their observations,” Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, explained.
The Commission’s investigation
In September 2024, Poland notified the Commission of its plan to support the state-owned company Polskie Elektrownie Jądrowe sp. z o.o. (‘PEJ’) in building a nuclear power plant in Lubiatowo-Kopalino. The plant, expected to generate up to 3,750 MW, is scheduled to start operations in the second half of 2030. Total investment costs are estimated at €45 billion.
Poland’s support will include an equity injection of around €14 billion (30% of costs), state guarantees covering 100% of PEJ’s debt, and a two-way contract for difference (CfD) ensuring revenue stability for 60 years.
While the Commission has found the aid package necessary, it is concerned about its compliance with EU State aid rules. Consequently, it has opened an in-depth investigation into the appropriateness of the aid, its impact on competition, and whether it is minimised.
The investigation will assess whether the CfD effectively incentivises the power plant to operate efficiently in the electricity markets, which is essential for reducing market distortions and supporting renewable energy integration. The Commission will also explore the potential for the aid to impact electricity consumers through direct contracts. This investigation allows Poland and interested third parties to provide comments but does not preclude any specific outcome.
