Poland took another step towards building its first nuclear power plant, after the Warsaw government approved on Tuesday a financing of up to 60.2 billion zlotys ($14.7 billion) for this project that has not yet received European Union approval to start, Bloomberg reports.
On Tuesday, the cabinet led by Donald Tusk adopted a draft regulatory act that provides for the capital increase of the state company PEJ Sp. z o.o., which is responsible for building the future nuclear power plant with a capacity of 3.75 Gigawatts on the shores of the Baltic Sea. The Warsaw government will be able to transfer bonds or cash to PEJ, depending on the investment schedule.
The largest economy in Eastern Europe is taking steps to reduce its dependence on coal and has chosen the American group Westinghouse Electric to build its first nuclear power plant, which would be located on the Baltic Sea coast, according to Agerpres.
Poland plans to complete its first nuclear power plant in 2036, when it will replace old coal-fired power plants, which will allow it to maintain electricity supply while cleaning up its energy system.
The new capital injection from the Polish government will cover 30% of the financing needed for the future nuclear power plant, with the rest to come in the form of debt from the US Export-Import Bank and other financial institutions.
The decision by the authorities in Warsaw comes as the European Commission is examining Poland’s proposal to grant state aid for the nuclear power plant project, which in addition to capital injections also includes a contract for difference for electricity produced at the future nuclear power plant and state guarantees for the debts of PEJ.
The EU executive announced last month that it “has doubts at this point whether the measure fully complies with EU state aid rules.”
As nuclear power enjoys a global renaissance, Poland has decided to speed up procedures to avoid delays. Wojciech Wrochna, the government’s chief for critical infrastructure, said talks with the EU could last more than a year, after which Poland plans to sign a final agreement with the Americans from Westinghouse Electric Co. and Bechtel Group.