European Commission clears EUR 42 billion state-backed financing model for Poland’s first nuclear power plant

The European Commission has approved Poland’s state aid package for a 3,750 MW nuclear power project at Lubiatowo-Kopalino. The EUR 42 billion scheme includes a 40-year contract for difference, equity support and full debt guarantees, positioning nuclear energy at the core of Poland’s long-term decarbonisation strategy.

The European Commission has authorised, under EU State aid rules, Poland’s support framework for the construction and operation of its first nuclear power plant. The project will be developed by Polskie Elektrownie Jądrowe sp. z o.o. (PEJ), a fully state-owned entity, at Lubiatowo-Kopalino and will comprise three reactors with a combined capacity of up to 3,750 MW. Commercial operations are targeted for the second half of the 2030s.

The total capital cost is estimated at approximately EUR 42 billion (PLN 178 billion). The approved aid structure includes a 40-year two-way contract for difference (CfD), designed to stabilise revenues by compensating the operator when wholesale prices fall below a predetermined strike price, while requiring repayments to the state when market prices exceed that level. The package also provides an equity injection covering about 30% of project costs and state guarantees for 100% of project debt.

The Commission had opened an in-depth investigation in December 2024 to assess proportionality, market distortion risks and compliance with EU competition law. Following revisions by Poland to address identified concerns, the measure was cleared.

The decision provides regulatory certainty for large-scale nuclear investment in Central Europe, with implications for regional power markets, low-carbon baseload supply and long-term electricity pricing dynamics as coal generation is phased down.