Updates on nuclear policy in Poland

The Polish Ministry of Energy (MoE) should submit the revised Principal Nuclear Program from 2014 (PNEP) to the government. It's preparation has been delayed, and now it is expected at the turn of this and the next year. A financial model should be included in the revised PNEP but its announcing has been delayed, too, even stronger than the PNEP. In general, the Minister has rejected the contract-for-difference scheme already some time ago. He has declared that at least the first unit will be financed from "domestic sources" only, however, without explaining the details. The general factual situation in that regard is that the whole state-owned energy sector has been already burdened with imposed decisions to fund other mega-investments and transactions, mostly in the coal-burning subsector and re-acquisition of foreign companies assets. Part of those are a dozen of power plants from EDF who are trying to raise funds to cover its losses in nuclear business elsewhere and following this it is retreating from Poland. Therefore, one may expect that funds from some other sectors will be made to be somehow involved, such as state-owned banks and pension funds.

MoE is also declaring to open the tender for the reactor technology and construction as early as in 2018, soon after the expected approval of the revised PNEP.

Fitch have just assessed that the PL energy utilities, i.e. PGE, Tauron, Enea and copper giant KGHM will risk downgrading, if and when they go for the nuclear new build.