Press release: Decision favorable to nuclear energy adopted by the Court of Justice of the European Union
The Romanian Atomic Forum ("Romatom") welcomed the decision of the Court of Justice of the European Union, issued on September 23, 2020, regarding the compliance with the European legislation of the financing mechanisms of the construction of a new nuclear power plant from Hinkley Point C in the United Kingdom, following the challenge submitted by Austria regarding the implementation of this project.
We remind that in 2014 the Government of the United Kingdom approved a series of financing mechanisms for the new nuclear projects, including contracts for the difference and guarantees issued by the state strategy for the renewal of the nuclear fleet.Austria challenged this project and the financing mechanisms implemented, but the appeal was rejected by the Court of Justice of the European Union initially in 2018 and again in 2020.
The decision of the Court of Justice of the European Union, which establishes that the project of the new nuclear power plant at Hinkley C and the financing mechanisms are in accordance with the European legislation and the Euratom treaty, confirms mainly the following essential elements:
- Compatibility with the internal market in accordance with Article 107 (3) (C) of the European Union operating treaty (TFEU)
- The right of each Member State ”to choose different energy sources and general structure of its energy supply”, By virtue of article 194 paragraph 2 of (Tfeu)
- In the absence of specific norms in the Euratom Treaty, the norms of the FE Treaty on state aid are applicable in the nuclear energy sector.The rules for financing the nuclear projects provided in the operating treaty of the European Union also take into account the impact on the environment, so a new nuclear project can obtain financing only under the conditions of demonstrating compliance with the legislation regarding the applicable environmental level.
“DThe Ecizia of the Court of Justice of the European Union issued in the case of Hinkley Point C is a positive signal for the Member States that initiate or continue nuclear projects, establishing as an independent priority in choosing the energy mix as well as the fact that nuclear energy qualifies to obtain financing through competitive mechanisms with the involvement of the state.In the context of the environmental targets established by the new Green Deal Deal, many Member States are in the face of major challenges on ensuring a future carbon emissions, and nuclear energy qualifies as an important component of the energy mix at present and future.. ”- Lucian Rusu, Romatom President.
Nuclear energy currently provides, at the level of the European Union, almost 50% of the electricity with reduced carbon dioxide emissions and 26% of the total electricity produced, providing 1.1 million jobs and an annual turnover of 102 billion euros.With 109 operating reactors in 15 countries, 4 new nuclear reactors in Finland, France and Slovakia and 8 in the planning stage in Bulgaria, the Czech Republic, Finland, Hungary and Romania are under construction.
In Romania, nuclear energy provides 18% of domestic production and 33% of the total energy produced in our country, creating 11,000 jobs in production, research, engineering, works, equipment production, innovation, education, the figure that could increase to 19,000 in the context of starting new nuclear projects.
"For Romania, the decision of the Court of Justice of the European Union represents a message to support the development of new nuclear capacities, making it possible to access the different financing options. Of course, each project is analyzed and evaluated independently by the European Commission, but Romatom appreciates the existence of a legislative framework that allows the financing of the big investment projects in Romania.Nuclear is included in all the scenarios of the Energy Strategy of Romania by 2030, with the perspective of 2050, as well as in the national plan integrated in the field of energy and climate change (PNISC) 2021-2030, which is why we appreciate the importance of nuclear option for our country, in alignment with the position of European states., " - Teodor Chirica, honorary president Romatom.
References:
Treaty on European Union operation (TFEU), https://eur-lex.europa.eu/legal-content/RO/TXT/PDF/?uri=CELEX:12012E/TXT&from=RO
Case C‑594/18 P, Republic of Austria v European Commission. Judgment of the Court (Grand Chamber), 22 September 2020, Resume, http://curia.europa.eu/juris/document/document_print.jsf?docid=231442&text=&dir=&doclang=EN&part=1&occ=first&mode=req&pageIndex=0&cid=3892231
CJUE's communication: https://curia.europa.eu/jcms/upload/docs/application/pdf/2020-09/cp200112en.pdf
About Romatom:
Romatom was set up on January 10, 2001, when 14 companies, with private or state capital, as well as two non-governmental associations, decided to set up the Romanian Atomic Forum.Currently, Romatom has over 30 members.
The association aims to promote the use for peaceful nuclear energy in Romania and to support the national nuclear program, as well as the coordination of all the activities assumed by the accession and participation of the Association in Foratom - the European Atomic Forum.At the same time, Romatom advocates for the protection and promotion of the interests of its members, representing the voice of the national nuclear industry, considering the technological and acquired know-how level, in order to fruiting them in practice.
