I. Amendments to the Nuclear Spec Act¹

On December 18, 2024, a draft amendment to the Act on preparation and execution investments in nuclear power facilities, accompanying investments, and certain other acts was published (the “Draft”²).

The Draft aims to simplify the process of developing and implementing investments in nuclear power facilities. This is to be achieved through the possibility of dividing the investment into stages.

The proposed amendment to Article 15(3) of the Nuclear Spec Act allows investors to apply for a building permit for the construction of a nuclear power facility covering a part of the investment that cannot operate independently, which is an exception to the general rule of construction law³.

The Draft proposes to establish the institution of “pre-construction works” for which a building permit may be obtained before obtaining a building permit for a nuclear power facility. This approach allows the investment process to be divided into stages, which is intended to expedite the overall realisation of the project.

The pre-construction works are to be divided into:

1. Basic pre-construction works - not related to nuclear safety;
2. Qualified pre-construction works - related to nuclear safety and radiation protection.

However, it is important to note that already at the stage of applying for a building permit for pre-construction works, an investor must have obtained, i.a. an environmental decision and a location decision, and in case of qualified pre-construction works a substantial decision (Polish: decyzja zasadnicza).

The qualified pre-construction works will require approval from the President of the Polish Atomic Energy Agency (PAA). The approval will be necessary to obtain a building permit and the examination of the application will be subject to a fee of PLN 1.5 million. The approval shall be issued within 9 (nine) months from submitting a complete application. In the case of basic pre-construction works, the approval will not be required.

Additionally, according to the proposed Article 17a (1) of the Nuclear Spec Act, the catalogues of basic and qualified pre-construction works will not be comprehensive. Based on Article 17b of the Nuclear Spec Act, an investor shall be entitled to obtain an opinion from the President of PAA regarding the qualification of given works as pre-construction works, and their classification as basic or qualified pre-construction works. The opinion shall be issued at the request of an investor upon payment of a fee of PLN 200,000. The opinion shall be provided within 3 months. In particularly complicated cases, the maximum time limit may extend to 6 months.

II. Financing of Poland's first nuclear power plant

On 7 January 2025 the Council of Ministers has adopted a draft amendment to the Nuclear Spec Act⁴, which provides for the recapitalization of Polskie Elektrownie Jądrowe Sp. z o.o. (”PEJ”) by the State Treasury between 2025 and 2030 to provide financing for the construction of the first Polish nuclear power plant.

PEJ is responsible for the preparation and implementation of Poland's first nuclear power plant, the financing model provides for 30 percent of the costs to be covered by equity and 70 percent by external capital. It is worth mentioning that the PEJ has already obtained a substantial and environmental decision, as well as a location decision.

The draft law envisages the provision of investment financing of PLN 60.2 billion to cover the costs from equity, with the remaining amount to be acquired from external financing institutions.

According to publicly available information, PEJ has received letters of intent to finance Poland’s first nuclear power plant with a total commitment exceeding PLN 95 billion. French institutions Bpifrance Assurance Export and Sfil have pledged more than PLN 15 billion (USD 3.75 billion), while Canada’s Export Development Canada has expressed its intent to support the PEJ with nearly PLN 6 billion (USD 1.45 billion). US entities, including the Export-Import Bank and the International Development Finance Corporation, previously committed PLN 75 billion.

Additionally, the European Commission has launched a detailed investigation into Poland's state aid for the Poland’s first nuclear power plant project. The support includes a EUR 14 billion capital injection, state-backed guarantees, and a 60-year contract to stabilize revenue. The investigation will assess whether this support aligns with EU state aid rules, particularly its impact on competition and the efficiency of the electricity market. The Commission will also review the proportionality of the aid package to ensure it doesn't exceed what's necessary for the project's realisation.

1. Act of 29 June 2011 on preparation and execution of investments in nuclear power facilities and accompanying investments (Journal of Laws 2024, item 1410 and 1572).
2. https://legislacja.rcl.gov.pl/projekt/12392701.
3. Article 33 of the Construction Law (consolidated text, Journal of Laws of 2024, item 725, as amended).
4. https://legislacja.rcl.gov.pl/projekt/12388950.