Poland seeks a partner for its second nuclear power plant. It will not be easy

Poland will begin searching for an investor for its second nuclear power plant in June this year. This time, the process will be more complex, as the country is not only seeking a technology supplier but also a strategic partner that will take an equity stake in the project.

Poland is continuing to decarbonise its energy sector, which remains heavily dependent on electricity generation from hard coal and lignite. While coal-fired generation still accounted for approximately three quarters of total electricity generation in 2021, this year its share is slightly above half. Solar and wind power plants, in which Poland is investing heavily, have made a major contribution.

In addition to investments in solar and wind power plants, Poland also intends to invest in nuclear generation. It has already selected a supplier for its first units: in 2022, the Polish government chose US company Westinghouse, which is to build up to three nuclear units in Poland with a combined installed capacity of approximately 3,300 MWe.

But Poland is not stopping there. It is now seeking a partner for the construction of another nuclear power plant, and this time it is not merely looking for a supplier, but an investment partner. This poses a more complex challenge, as such a partner must address not only supply-related risks but also the plant's long-term operation.

“We want to have an investment partner, but we do not know whether we will find one. We need to verify the level of interest. We want to conclude this dialogue next year,” Deputy Industry Minister Wojciech Wrochna said at a press conference.

This model is relatively rare in Europe. The Paks II, Olkiluoto and Flamanville nuclear power plants are each being built by a single company. The UK government is addressing a similar situation in the construction of the Sizewell C nuclear power plant. The government is now seeking a partner for the project, after taking over the stake held by Chinese company CGN in 2022.

“We will discuss participation in the project with all interested parties. We will not limit it by choosing a model or a supplier. We want to discuss what is possible in terms of technology, supplier, financing and operation. We will talk to everyone: the French, Americans and Canadians,” he added.

Poland plans to start construction of the first unit at the first site in 2028 and complete it in 2036, four years later than originally planned. Wrochna said that the involvement of Polish local companies in the construction of the first nuclear power plant would be of “fundamental importance” in talks with US company Westinghouse on the construction of the first nuclear power plant.