EC opens in-depth investigation into Romanian state aid for nuclear reactor refurbishment

The European Commission (EC) announced that it opened an in-depth investigation into Romania’s planned state aid for the refurbishment of Unit 1 at the Cernavodă nuclear power plant. The move follows preliminary concerns over whether the proposed support package complies with EU state aid rules.

Romania notified the Commission in January 2026 of its plan to extend the reactor’s lifespan by 30 years, beyond its expected end of operation in 2027. The unit, which began operating in 1996, currently provides around 10% of the country’s electricity and plays a key role in ensuring low-carbon energy supply.

The project, estimated at EUR 3.2 billion, would be implemented by state-owned Nuclearelectrica and supported through a mix of measures, including a EUR 600 million grant, state-backed loan guarantees, a long-term two-way contract for difference (CfD), and a mechanism to protect against regulatory changes.

“At this stage, based on its preliminary assessment, the Commission has found the project necessary and considers that the aid facilitates the development of an economic activity. Nevertheless, the Commission has doubts on whether the measure is fully in line with EU State aid rules,” reads the EC’s announcement.

The European Commission has raised concerns about the proportionality of the aid and its potential impact on market competition. In particular, officials are examining whether the support package could transfer excessive risk to the state or distort market incentives.

The investigation will also assess whether the CfD mechanism complies with EU electricity market rules, including safeguards to prevent undue benefits to the operator or negative effects on consumers.

“The Commission will now investigate further to determine whether its initial concerns are confirmed,” the same source said.

The opening of the probe allows Romania and other interested parties to submit comments, with the EC stressing that the move does not prejudge the final outcome.

irina.marica@romania-insider.com

(Photo source: Nuclearelectrica)