The European Commission has launched an investigation into the €3.2 billion state aid provided by Romania for the modernization project of the Cernavodă Nuclear Power Plant.

April 20, 2026

The European Commission has launched an in-depth investigation to assess the compatibility of state aid that Romania plans to provide for the modernization and extension of the lifespan of unit 1 of the Cernavodă Nuclear Power Plant with EU state aid rules.
In January, Romania notified the EC of its plan to support the modernization of the Cernavodă-1 reactor, which began commercial operation in 1996 and currently provides about 10% of the country's electricity. The recipient of the support is Nuclearelectrica, the owner and operator of the Cernavodă Nuclear Power Plant, which is controlled by the Romanian state (with a majority of shares) and is the only operator of nuclear power plants in the country. The estimated nominal cost of the project is 3.2 billion euros (3.8 billion US dollars).

Romania plans to support the modernization of the nuclear unit through four measures: a grant of 600 million euros; government guarantees on loans raised to finance the investments; a bilateral contract for difference (CfD) lasting 30 years to ensure stable income for the plant; as well as a regulatory change protection mechanism during construction and operation.

“At this stage, based on its preliminary assessment, the Commission deemed the project necessary and believes that the aid contributes to the development of economic activity,” the EC stated. “However, the Commission has doubts about whether this measure fully complies with EU state aid rules.”

In this regard, it was decided to open an in-depth investigation regarding the feasibility and proportionality of the aid package; the measure's impact on market competition and whether this is minimized; as well as compliance with other provisions of EU legislation, “in particular the design principles set out in Article 19d(2) of the Electricity Regulation regarding the contract for difference.”

The Cernavodă Nuclear Power Plant consists of two CANDU-6 reactors, each with a capacity of 650 MWe. Unit 1 was commissioned in 1996, and unit 2 in 2007. Nuclearelectrica plans to extend the lifespan of unit 1 to 60 years. The modernization project for unit 1 began in 2017 and is currently in the second of three phases. The third phase, scheduled for 2027–2029, begins with the shutdown of unit 1 and includes all necessary work on it and its recommissioning.

In December 2024, the company signed an engineering, procurement, and construction (EPC) contract for the modernization with a consortium including Korea Hydro & Nuclear Power, Candu Energy (AtkinsRéalis), Canadian Commercial Corporation, and Ansaldo Nucleare. Last September, Nuclearelectrica signed a financing contract of 540 million euros with a banking syndicate led by JP Morgan for modernization purposes. In accordance with the contract signed last October, the French company Arabelle Solutions will provide equipment and services for the modernization of the turbine generator of unit 1 of the Cernavodă Nuclear Power Plant as part of the 30-year lifespan extension project.

CANDU reactors are heavy-water pressurized reactors designed for 30 years of operation with the possibility of extending for another 30 years, contingent upon modernization. This includes the replacement of key reactor components, such as steam generators, pressure tubes, calandria tubes, and feeder piping. The process involves removing all fuel and heavy water from the reactor and isolating it from the rest of the power plant prior to dismantling. During the high-precision reconstruction, thousands of components are inspected, including those inaccessible when the reactor is assembled, and all 480 fuel channels and 960 feeder pipelines are replaced.

Source:
Nuclear Energy 2.0