The Commission said it needs to verify whether the proposed measures are necessary, proportionate and do not distort competition in the market, according to a press release.
At the beginning of this year, Romania notified the EC of its plan to support the refurbishment of the 706-megawatt Cernavoda reactor so it can operate for another 30 years. The upgrade plan includes a EUR600 million ($707 million) grant, state-backed loan guarantees, a two-way contract for difference (CfD) running for 30 years to provide stable revenues, and a mechanism to protect against regulatory changes during construction and operation.
The beneficiary of the financial aid is Nuclearelectrica (stock symbol: SNN), the majority state-owned operator of the Cernavoda plant and the country’s sole nuclear power producer. The project’s estimated nominal value stands at EUR3.2 billion.
Unit 1, which began commercial operations in 1996, currently supplies about 10% of Romania’s electricity. With its initial lifetime set to expire in 2027, the extension is seen as key to ensuring long-term low-carbon power supply and strengthening energy security, while contributing to the EU’s decarbonization targets, according to the EC.
While the Commission’s preliminary assessment found the project necessary and supportive of economic activity, it also raised concerns over whether the aid package fully complies with EU rules.
In December 2024, Nuclearelectrica signed a EUR1.9 billion engineering, procurement, and construction (EPC) contract with an international consortium to refurbish Unit 1 and extend its life span. The following year, the company signed a EUR175 million contract with nuclear technology services firm Arabelle Service France and its local subsidiary Arabelle Solutions Romania for works related to Unit 1 refurbishment.
The Romanian state, through the ministry of energy, owns an 82.49% stake in Nuclearelectrica, while the remainder is in free float on the Bucharest bourse.