Polish Nuclear Power Plant Costs Won't Rise? Prices for Services and Products Agreed in Advance

The provisions of the so-called bridge agreement (EDA) with the contractors of the first nuclear power plant, the Westinghouse-Bechtel consortium, set in advance the prices of certain products and services supplied by Westinghouse, Dan Lipman, head of the company's Energy Systems department, told PAP.

The EDA (Engineering Development Agreement) covering the continuation of design work on the first nuclear power plant was signed by Polskie Elektrownie Jądrowe with Westinghouse and Bechtel on April 28 in the presence of Prime Minister Donald Tusk and US Secretary of Energy Chris Wright. Its signing was necessary due to the expiry of the ESC (Engineering Service Contract) for design services in early April.

The agreement contains a list of items and products that will be delivered at a predetermined, guaranteed price by the supplier. "The list includes certain engineering works, necessary analyses, such as safety analyses that will be presented to the Polish nuclear regulator, or the development of order specifications," said Dan Lipman. These are the subjects of the agreement for which we were able to guarantee prices, he explained.

In his opinion, thanks to fixed prices, the Polish side can be sure that Westinghouse will complete a specific scope of work within the agreed time and budget. "And if we make a mistake and it takes longer than planned, the risk will be on our side. This is the advantage of fixed prices for the customer," Lipman emphasized.

Compared to the previous ESC design contract, the EDA agreement also includes a number of other changes. "The procedure for resolving disputes and arbitration has been precisely defined, and Paris has been chosen as its venue. Penalties for poor progress have been more precisely and rigorously written down," Lipman listed. He noted, however, that he is not afraid of these provisions, because Westinghouse is confident in its ability to fulfill orders.

On the occasion of signing the agreement, Prime Minister Donald Tusk stated that it is better for the Polish side than the previous one. According to Lipman, the provisions provide greater certainty of the execution of the entire agreement. "We can say that EDA is better for the Polish side in some respects. And it is better for all of us," he assessed. So we are happy with EDA, the work will continue until next year, when we will sign the EPC (Engineering, Procurement and Construction) agreement," added the head of Westinghouse Energy Systems.

In his opinion, the date of signing the final contract for the construction of the EPC depends on how quickly the European Commission agrees to state aid for the plant. "In parallel, Westinghouse, Bechtel and PEJ will start technical negotiations, and the work within the EDA will continue and deepen. In line with the idea to have the EPC as soon as the European Commission gives us the green light to act," said Dan Lipman.

The European Commission opened the state aid procedure in December 2024. The Polish government estimates that its consent could come at the earliest at the end of this year.

As Dan Lipman recalled, both Prime Minister Donald Tusk and Secretary Wright emphasized the importance of the EDA for bilateral relations between Poland and the U.S. "Cooperation in the field of nuclear energy is important, but there is also cooperation in the field of security, as well as a strategic partnership. This is a relationship for a very, very long time," he assessed.

Polish Nuclear Power Plants is a 100% state-owned investor and future operator of the first Polish nuclear power plant, which is to be built using Westinghouse AP1000 technology at Lubiatowo-Kopalino in Pomerania. According to the current schedule, the first nuclear concrete for the first reactor is to be poured in 2028. The first unit is scheduled to start commercial operation in 2036. (PAP)

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