The European Commission has opened an in-depth investigation to assess whether the public support that Romania intends to grant for the refurbishment and extension of the lifetime of Unit 1 of the Cernavoda Nuclear Power Plant complies with EU state aid rules, according to a statement from the Community Executive, sent to Agerpres on Thursday.

In January 2026, Romania notified Brussels of its intention to support the refurbishment of the reactor of Unit 1 of the Cernavoda Nuclear Power Plant, while maintaining the same electricity production capacity, namely 706 megawatts, so that it can operate for another 30 years.

The Unit 1 reactor was put into operation in 1996. It currently provides approximately 10% of Romania’s electricity needs.

As the reactor is due to reach the end of its estimated lifetime in 2027, extending its life by a new 30-year operating cycle is essential to ensure the long-term availability of low-carbon electricity. The project’s objective is to increase the security of Romania’s electricity supply and contribute to the Union’s decarbonisation objectives.

The beneficiary of the support is Nuclearelectrica (SNN), the owner and operator of the Cernavoda Nuclear Power Plant, which is majority-owned by the Romanian state, and the only nuclear power operator in the country. The estimated nominal value of the project is EUR 3.2 billion.

The cited source indicates that Romania intends to support the retrofitting of the nuclear unit through four measures: a grant worth EUR 600 million; state guarantees for loans contracted to finance the investment; a 30-year two-way contract for difference (CfD) to ensure stable revenues for the plant; a safeguard mechanism in case of regulatory changes during construction and operation.

“At this stage, based on its preliminary assessment, the Commission considers that the project is necessary and that the aid facilitates the development of an economic activity. However, the Commission has doubts as to the full compliance of the measure with EU State aid rules,” the statement said.

For this reason, the EC has decided to open an in-depth investigation to establish: the appropriateness and proportionality of the aid package; the impact of the aid measure on competition in the market and whether it is minimised; compliance with other provisions of EU law, in particular with the principles governing the design of support schemes in the form of two-way contracts for difference, as set out in Article 19d(2) of the Electricity Regulation.

“Since there are several aid measures which, together, can limit the risks for the beneficiary, it is important to ensure that no more aid is ultimately granted than necessary. In particular, the Commission has doubts as to whether the proposed package strikes an appropriate balance between reducing risks to create favourable conditions for investment and maintaining incentives for efficient conduct, while avoiding excessive transfer of risks to the State,” the Commission document states.

The Commission also “concerns” that several key elements of the contract for difference do not provide effective incentives for operation and maintenance. Thus, at this stage, the Commission cannot conclude that there are sufficient safeguards to prevent the aid from being passed on to consumers or certain market participants.

The Commission will continue its investigation to determine whether its initial concerns are confirmed. The opening of an in-depth investigation gives Romania and interested third parties the opportunity to submit observations, without prejudice to the outcome of the investigation, the statement said.

“Under the Treaty on the Functioning of the EU (TFEU), Member States are free to determine their energy mix, the conditions under which they exploit their energy resources and the general structure of their energy supply. The decision to promote nuclear energy is a national competence. State aid to support nuclear energy can be assessed directly under Article 107(3)(c) TFEU, which allows Member States to facilitate the development of certain economic activities under certain specific conditions. The aid must be necessary and proportionate and must not unduly affect trading conditions to an extent contrary to the common interest. Following the entry into force of the new electricity market organisation rules in July 2024, the Commission is also assessing compliance with the principles for the design of support schemes for two-way contracts for difference set out in Regulation 2024/1747,” the source quoted states.

The non-confidential version of the decision will be published in the State Aid Register on the Commission’s competition website, once any confidentiality issues have been resolved.