European Commission approves revised aid plan for Polish nuclear plant

The European Commission green-lighted Poland’s plan for a new nuclear plant after initially questioning whether the project’s economic incentives were in breach of EU aid regulations.
In 2024, Poland announced its intention to support the state-owned company Polskie Elektrownie Jądrowe sp. z o.o. (PEJ) in building and operating a new nuclear plant in Lubiatowo-Kopalino. The construction was billed at a total capital expenditure of €42 billion. The plant is scheduled to be operational in the second half of the next decade. The project was decided to diversify Poland’s energy output and reduce its coal consumption. Once operational, the new plant will have three nuclear reactors, each with a capacity of 1,250 MW.
As part of the contract to operate the plant, the Polish government plans to enter into a two-way contract for difference for 40 years. The Commission contested Poland’s first contract, a 60-year contract.
Under the contract, Poland will pay PEJ if market prices fall below a fixed price, and PEJ will pay the Polish state if market prices exceed said price.
The Commission checked the plan in December 2024 to assess the risks of market distortion. It asked Poland to shorten the contract’s operating period and suggested focusing PEJ on receiving incentives for its ability to generate energy rather than its electric output.
Finally, Poland will ensure that at least 70% of its annual electricity output is sold on the open power exchange, with the remaining 30% sold via auctions, to mitigate potential market concentration. For the same reason, PEJ will remain legally independent from other operators.