In a landmark decision for Poland’s energy future, President Andrzej Duda has officially signed a bill allocating national funds for the construction of the country’s first nuclear power plant. This move is a crucial step in Poland’s push toward energy security and decarbonization.
Government Commitment and Financial Backing
Under the newly signed legislation, Polskie Elektrownie Jądrowe (PEJ) will receive PLN 60.2 billion (USD 15.5 billion) in public funding between 2025 and 2030. This financial commitment underscores the Polish government’s strong backing for nuclear energy as a key component of its long-term energy strategy.
In September 2023, the government announced a multi-faceted support plan for the project, including:
- An equity injection covering 30% of the project’s costs,
- State guarantees covering 100% of the debt taken by PEJ for financing,
- A two-way Contract for Difference (CfD) ensuring revenue stability for the plant’s 60-year lifespan.
Reactor Technology and Construction Plans
The Polish government selected Westinghouse’s AP1000 reactor technology in November 2022 for deployment at the Lubiatowo-Kopalino site in Choczewo, Pomerania. A formal agreement detailing the delivery plan was signed in May 2023 between Westinghouse, Bechtel, and PEJ. The Ministry of Climate and Environment granted a decision-in-principle in July, approving the construction of a three-unit plant at the site.
The goal is to have the first AP1000 reactor fully operational by 2033, marking a significant milestone in Poland’s energy transition.
Investment Structure and Oversight
The nuclear power plant will be financed with a mix of public and private investment, structured as follows:
- 30% of funding will come from equity investments,
- 70% will be sourced from foreign financial institutions, particularly export credit agencies, including the Export-Import Bank of the United States.
To ensure transparency, the bill mandates reporting obligations regarding the use of public funds. PEJ will submit annual reports to a designated government plenipotentiary, who will then relay this information to the Council of Ministers.
Regulatory and EU Considerations
Despite national approval, the project faces scrutiny from the European Commission, which is currently reviewing whether Poland’s state aid for the nuclear power plant complies with EU competition rules. The outcome of this investigation could impact the financial structure of the project and its timeline.
A New Era for Poland’s Energy Sector
Poland’s shift toward nuclear energy represents a significant step in its strategy to diversify energy sources and reduce reliance on coal. With a target launch in 2033, the project is set to play a vital role in securing the country’s energy independence and aligning with broader European decarbonization goals.
