What’s next for the Polish nuclear power plant? The government will adopt the project

Luc Williams

Nuclear power plant project

The draft amendment to the Act on the preparation and implementation of investments in nuclear energy facilities provides for: in 2025-2030, 100% owned by to the State Treasury, Polskie Elektrownie Jądrowe will be co-financed with PLN 60.2 billion by increasing the share capital. This will be done either in the form of a cash contribution or in kind – through the transfer of treasury bonds.

According to the schedule included in the project, in 2025 the NPP co-financing will amount to PLN 4.6 billion, which is already included in the draft state budget that was submitted to the Sejm. In 2026, the amount of funding is expected to reach PLN 11 billion, and further PLN 14 billion in 2027, PLN 13 billion in 2028, PLN 11 billion in 2029 and PLN 6.6 billion in 2030.

Financing model

As emphasized in the justification of the draft act, in accordance with the assumptions of the investment financing model, The State Treasury is directly involved in the construction of the first nuclear power plant, both as a direct investor and as a guarantor of the receivables of other lenders. The project is to be financed in 30%. from PEJ’s equity capital and 70 percent from debt, including from foreign credit institutions. It was assumed that external financing would be obtained after the owner’s own contribution was made in full, in accordance with the “equity first” principle.

PEJ is an investor and future operator of a power plant in Pomerania. The company already has an environmental decision for the construction and operation of a nuclear power plant with a capacity of up to 3,750 MWe in the Lubiatowo-Kopalino location, and a basic decision issued by the Minister of Climate. PEJ also signed a contract with the Westinghouse-Bechtel consortium for the design of the power plant. In turn, the government sent an application to the European Commission for notification of state aid through recapitalization of the company and in the form of a contract for difference.

The power plant is to be built using AP1000 Westinghouse technology and will consist of three units. According to the latest declarations from the government, the first nuclear concrete for the first unit is to be poured in 2028, and its construction will be completed in 2035 (PAP)

About LUC WILLIAMS

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