Project would ‘ensure long-term availability of low-carbon electricity’
The European Commission has opened an in-depth investigation to assess whether public support that Romania plans to grant for the refurbishment and lifetime extension of Unit 1 of the Cernavodă nuclear power station is in line with EU state aid rules.
In January 2026, Romania notified the commission of its plan to support the refurbishment of the Cernavodă-1 reactor while maintaining the same electricity generation capacity of 706 MW (gross), so it can operate for another 30 years.
Cernavodă-1 began commercial operation in 1996. It supplies approximately 10% of Romania’s electricity.
As the estimated lifetime of the reactor expires in 2027, the extension of its life by an additional 30-year operating cycle is crucial to ensure the long-term availability of low-carbon electricity, the commission said.
The project aims to increase the security of electricity supply for Romania, as well as to contribute to the European Union’s decarbonisation targets.
The beneficiary of the support is Nuclearelectrica National Company, the owner and operator of the Cernavodă nuclear station, 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 €3.2bn ($3.7bn).
Romania plans to support the refurbishment of the nuclear unit through four measures: a grant of €600m; state guarantees for loans taken to finance the investment; a two-way contract for difference running for 30 years to provide stable revenues to the plant; and a protection mechanism for regulatory changes during construction and operation.
The commission said that based on its preliminary assessment, it has found the project necessary and considers that the aid facilitates the development of an economic activity.
But the commission said it has doubts on whether the measure is fully in line with EU state aid rules and will investigate the “appropriateness and proportionality” of the aid package.
“In particular, the commission has doubts on whether the proposed package achieves an appropriate balance between reducing risks to enable the investment and maintaining incentives for efficient behaviour, while avoiding excessive risk transfer to the state,” a statement said.
According to EU rules, state aid to support nuclear energy must be “necessary and proportionate” and must not adversely affect trading conditions to an extent contrary to the common interest.
Cernavodă has two Canada-designed Candu-6 reactors which generate an almost 20% share of electricity production. Bucharest is planning to add two new reactors at the site.
