The European Commission said Thursday it opened a probe into Romania's 3.2 billion euros ($3.77 billion) nuclear aid plan for Cernavoda Unit 1, citing concerns over State aid compliance.
Romania notified the Commission in January 2026 of plans to refurbish and extend the reactor's life while maintaining its 706-megawatt capacity, allowing operations to continue for another 30 years.
The reactor, operational since 1996, supplies about 10% of Romania's electricity, and its upgrade is seen as critical to ensuring long-term low-carbon power availability, the Commission said.
The project also aims to strengthen energy security and support the European Union's decarbonization goals, with state-owned Nuclearelectrica National Company acting as operator and beneficiary.
The total estimated value of the refurbishment project stands at 3.2 billion euros, reflecting the scale of investment required to extend the plant's operational life, according to the Commission.
Romania plans to fund the project through a mix of support measures, including a 600-million-euro grant and state-backed guarantees for loans tied to the investment.
Additional support includes a two-way contract for differences running for 30 years to stabilize revenues, alongside protections against regulatory changes during construction and operation.
The Commission said its initial review found the project necessary and supportive of economic activity but raised doubts over whether the aid fully complies with European Union rules.
The Commission is questioning whether the aid package is too large, as the mix of support measures may reduce the operator's financial risk by more than necessary.
The Commission said it is also reviewing whether the plan continues to encourage efficient operations while ensuring the state does not take on too much of the project's risk.
Further scrutiny will examine the potential impact on market competition, including whether the Contract for Difference design weakens operational or maintenance incentives, the Commission added.
The Commission said it also raised concerns about whether safeguards are strong enough to prevent the aid from indirectly benefiting consumers or certain market participants
The investigation will now allow Romania and third parties to submit feedback, with the Commission stressing that the review does not prejudge the final outcome.