EU greenlights state aid for Poland's first nuclear power plant

EU greenlights state aid for Poland's first nuclear power plant

The European Commission has approved an aid package for Poland’s first nuclear power plant to be built in Lubiatowo-Kopalino and expected to begin operations in 2030.

The support package will finance the construction and operation of three nuclear reactors, providing a total electricity generation capacity of up to 3,750 megawatts, the European Commission said in a statement on Tuesday.

With an estimated cost of €42 billion, the project is intended to help Poland reduce the carbon emissions from its electricity sector.

Poland will also provide a direct equity injection covering about 30% of the costs and state guarantees for all the project’s debt, the Commission said.

Scrutiny to aid package

The Commission began a formal investigation into the aid in December 2024, focusing on its impact on competition and its alignment with EU state aid rules.

To prevent overcompensation, any profits beyond what is needed for the plant to earn a market-based rate of return will be shared with the government.

Poland has also committed to selling at least 70% of the plant’s annual electricity output on the open power exchange, with the remainder available via auctions under transparent rules.

State aid for nuclear energy is permitted under certain conditions, provided it does not unduly distort competition or trade in the internal market and is proportionate to the project’s needs.

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