Scrutiny from Brussels has intensified as the European Commission launches a formal investigation into the planned state backing for the overhaul of Unit 1 at the Cernavodă nuclear power plant. The move reflects concerns over whether the proposed financial support complies with EU competition rules.
Romanian authorities had previously notified plans to extend the reactor’s operational life by 30 years, beyond its scheduled shutdown in 2027. Since its commissioning in 1996, the unit has supplied around 10% of Romania’s electricity, making it a crucial component of the country’s low-emission energy mix.
Valued at approximately 3.2 billion euros, the refurbishment project is being led by Nuclearelectrica. The proposed financing structure includes a 600 million euro direct grant, state-backed loan guarantees, a long-term two-way contract for difference (CfD), and additional protections against regulatory changes.
While the Commission recognizes that the project supports an important economic activity and could contribute to energy security and climate objectives, it has raised concerns about the scale and design of the aid. In particular, officials are assessing whether the measures could place disproportionate financial risk on the state or distort competition within the electricity market.
A key focus of the review is the CfD mechanism, with regulators examining its compatibility with EU market rules and whether it could provide undue advantages to the operator or have unintended consequences for consumers.
The launch of the investigation allows for input from Romanian authorities and other stakeholders, with Brussels emphasizing that this is a standard procedural step and does not prejudge the final outcome.
