Business Forum • 16 April, 2026 at 6:49 PM
The European Commission has opened an in-depth investigation into Romania's planned state support for refurbishing the Cernavoda 1 nuclear reactor, questioning whether the €3.2 billion aid package complies with EU state aid rules.
Romania notified the Commission in January 2026 of plans to support the refurbishment of the Cernavoda Unit 1 reactor, maintaining its 706 MW electricity generation capacity for another 30 years of operation. The reactor, which began commercial operation in 1996 and currently supplies approximately 10% of Romania's electricity, faces expiration of its estimated lifetime in 2027.
The beneficiary is Nuclearelectrica National Company (SNN), the majority state-owned operator of the Cernavoda nuclear plant and Romania's only nuclear power operator. Romania plans to support the refurbishment through four measures: a €600 million grant, state guarantees for investment loans, a 30-year contract for difference to provide stable revenues, and protection against regulatory changes during construction and operation.
While the Commission considers the project necessary and recognises it facilitates economic activity development, it has concerns about the aid package's appropriateness and proportionality. The Commission questions whether the proposed package achieves proper balance between reducing investment risks and maintaining efficient behaviour incentives while avoiding transferring risks to the state.
The Commission also has concerns about the measure's impact on market competition, particularly regarding the contract for difference design elements that may not provide efficient operational and maintenance incentives. The investigation will determine whether sufficient safeguards exist to prevent aid transfer to consumers or specific market participants.