IN LONDON: The European Commission has opened an in-depth investigation to assess whether to support Romania’s plans for the refurbishment and lifetime extensions of Unit 1 of the Cernavoda nuclear power plant.
As part of the investigation, the commission will determine the appropriateness and proportionality of the aid package, the impact of the measure on competition in the market, and the compliance with other provisions of EU law.
In January 2026, Romania notified the commission of its plan to support the refurbishment of the reactor while maintaining the same electricity generation capacity of 706 megawatts – making it operational for an additional 30 years.
The Unit 1 reactor began commercial operation in 1996 and currently supplies 10% of Romania’s electricity. As the estimated lifetime of the reactor expires in 2027, the extension of its life by an additional 30-year operating cycle is crucial to ensure the long-term availability of low-carbon electricity.
The project, which has an estimated nominal value of €3.2 billion ($5.25 billion), aims to increase the security of electricity supply for Romania, as well as to contribute to the EU’s decarbonisation targets.
Romania plans to support the refurbishment of the nuclear unit through four measures. These include a €600 million grant, state guarantees for loans taken to finance the investment, a two-way contract for difference running for 30 years, and a protection mechanism for regulatory changes during construction and operation.
Based on a preliminary assessment, the European Commission has found the project necessary and considered that the aid facilitates the development of an economic activity.
However, the commission says it has doubts on whether the measure is fully in line with EU state aid rules.
Nuclear reactors are primarily used to generate large-scale, low-carbon, and reliable baseload electricity by controlling nuclear fission to create heat.
According to the World Nuclear Association, the EU depends on nuclear power for about one-quarter of its electricity and a higher proportion of base-load power. The continent has about 98 nuclear power reactors, operating across 13 of the 27 EU member states.
Over half of the EU’s nuclear electricity is produced in France. The 64 units operating in five non-EU countries – UK, Belarus, Russia, Ukraine, and Switzerland – account for 30% of the electricity in the rest of Europe.
Write to Aaliyah Rogan at Mining.com.au
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