Regulatory frameworks for nuclear power development in Poland
Katarzyna Sawa-Rybaczek
by Katarzyna Sawa-Rybaczek
Preparatory work for the construction of Poland’s first ever nuclear power plant is well underway. It has been announced that construction work will commence in 2028 by Polskie Elektrownie Jądrowe (PEJ) [Polish Nuclear Power Plants] with technology provided by Westinghouse Electric Company.
Nuclear procedures
The primary source of regulations governing the operation and licensing of nuclear power plants is the Atomic Law Act of 29 November 2000 (as further amended). Due to the complex nature of the investment process, the Act of 29 June 2011 (as further amended) on the Preparation and Implementation of Investments in Nuclear Power Facilities and Accompanying Investments (the Special Act) was additionally passed. The Special Act sets out specific rules and conditions including the procedure for issuing the “principle decision”, the decision on the location of the investment and the building permit for the facility. It regulates a number of issues related to administrative proceedings important from the investor’s point of view, such as the acquisition of legal title to real estate, as well as expropriation of real estate and resulting compensation. It also introduces special rules for awarding contracts for investments in the construction of a nuclear power facility.
The construction of a nuclear power plant is an extremely complex, complicated process, and from a legal perspective, it is necessary to obtain additional decisions and permits required specifically for nuclear projects and issued on the basis of the Special Act. These include:
A principle decision, i.e. a key administrative decision issued by the Minister of Climate and Environment, which is an expression of the State’s acceptance of the construction of a nuclear power plant by a specific investor, in a particular location, and with the use of a particular technology;
A decision on the location of the investment.
Fundamental to investment
It is crucial for the investor to obtain a fundamental decision which must be obtained at the first stage of the investment and construction process, even before applying for a location decision. This is to reduce the investment risk. Another permit regarding the decision determining the location of the investment can be issued only after obtaining the State’s approval for the implementation of the particular investment in a given place, as expressed in the fundamental decision.
In addition, a nuclear power plant, like other investments of this and similar scale, also requires the following to be obtained:
A decision on environmental conditions;
Building permits;
Occupancy permits.
The above-mentioned permits are issued on the basis of the respective regulations that apply to all construction projects, but subject to special regulations contained in the Atomic Law and the Special Act.
It is not enough for a nuclear project to obtain a regular building permit issued under Construction Law; it is necessary to obtain specific permits to carry out activities related to “exposure”, i.e. permits for the construction, start-up, operation, and decommissioning of nuclear facilities, which are issued by the National Atomic Energy Agency. In addition, Atomic Law assumes that foreign authorities are also involved in the process of obtaining permits. Before applying for a permit for the start-up, the investor must obtain the relevant opinion of the European Commission.
Further changes
In May 2024, PEJ announced that changes in the law are necessary to accelerate the construction of Poland’s first-ever nuclear power plant. These changes would include the possibility of carrying out preliminary work on the construction site before obtaining a final building permit, which would allow construction itself to be accelerated by an estimated two years.
This proposal has been verbally approved by the Polish government and the government plenipotentiary for strategic energy infrastructure, who supervises PEJ, has said that he will soon propose changes to the law which will allow for the phased construction of the power plant.
This proposal should be assessed positively. However, nuclear projects are extremely demanding and long lasting, especially at the initial stage. It has now been assessed that Poland’s first nuclear project will be completed around 2040, so an acceleration of the investment by approximately two years would be a welcome solution, warmly supported by all parties involved.
Katarzyna is a rarity among lawyers as she uniquely connects banking and finance with transactional real estate work. Contact Katarzyna.
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