Nuclear Power in Turkey

• Turkey has had plans for establishing nuclear power generation since 1970. Today, plans for nuclear power are a key aspect of the country's aim for economic growth. • Recent developments have seen Russia take a leading role in offering to finance and build 4800 MWe of nuclear capacity. • Application has been made for construction and operating licences for the first plant, at Akkuyu. • South Korea, Japan, China and Canada are investigating bidding for a second nuclear plant. In 2010 Turkey's electricity production was 211 billion kWh gross from almost 45 GWe of plant. Of this, 98 TWh (46%) came from gas (two thirds of this from Russia, most of the rest from Iran), 55 TWh (26%) from coal, and 52 TWh (24.5%) from hydro. Demand growth is 8% pa. Per capita consumption has risen from 800 kWh/yr in 1990 to about 2200 kWh/yr. Plans for nuclear power are a key aspect of the country's aim for economic growth, and it aims to cut back its vulnerable reliance on Russian and Iranian gas for electricity. Nuclear power proposals in Turkey Several nuclear power projects have been proposed: In 1970 a feasibility study concerned a 300 MWe plant, in 1973 the electricity authority decided to build a 80 MWe demonstration plant but didn’t, then in 1976 the Akkuyu site on the eastern Mediterranean coast near the port of Mersin was licensed for a nuclear plant. In 1980 an attempt to build several plants failed for lack of government financial guarantee. In 1993 a nuclear plant was included in the country's investment program following a request for preliminary proposals in 1992. But revised tender specifications were not released until December 1996. Bids for a 2000 MWe plant at Akkuyu were received from Westinghouse + Mitsubishi, AECL and Framatome + Siemens. Following the final bid deadline in October 1997, the government delayed its decision no less than eight times between June 1998 and April 2000, when plans were abandoned due to economic circumstances. Early in 2006 the province of the port city of Sinop on the Black Sea was chosen to host a commercial nuclear power plant. This has the advantage of cooling water temperatures about 5 degrees C below those at Akkuyu, allowing about 1% greater power output from any thermal unit. A 100 MWe demonstration plant was to be built there first, then 5000 MWe of further plants to come into service from 2012. Some kind of public-private partnership was envisaged for construction and operation. In August 2006 the government said it planned to have three nuclear power plants total 4500 MWe operating by 2012-15. Discussions had been under way with Atomic Energy of Canada Ltd regarding two 750 MWe CANDU units as an initial investment. These and the PWR type were apparently preferred. The first units of some 5000 MWe total were to be built at Akkuyu, since the site was already licensed, but licensing was also proceeding for Sinop. In 2007 a new bill concerning construction and operation of nuclear power plants and sale of their electricity was passed by parliament and subsequently approved by the President. The bill provided for the Turkish Atomic Energy Authority (TAEK) to set the criteria for building and operating the plants. The Turkish Electricity Trade & Contract Corporation (TETAS) would then buy all the power under 15-year contracts. The bill also provided for public institutions to build the plants if other offers are not satisfactory. It also addressed waste management and decommissioning, providing for a National Radioactive Waste Account (URAH) and a Decommissioning Account (ICH) which generators would pay into progressively. In May 2008 a civil nuclear cooperation agreement with the USA entered into force, and in June 2010 a nuclear cooperation agreement with South Korea was signed, and in April 2012 two such agreements with China were signed. Akkuyu TETAS called for tenders in March 2008, inviting bids for the first nuclear power plant at Akkuyu, near the port of Mersin. TAEK issued specifications, allowing for PWR, BWR or PHWR types of at least 600 MWe and with 40-year service life. Design certification in country of origin was acceptable, allowing TAEK to concentrate on site-specific aspects of the 4800 MWe project. In the event, only one bid was received from 14 interested parties, this being from Atomstroyexport in conjunction with Inter RAO (both from Russia) and Park Teknik (Turkey), for an AES-2006 power plant with four 1200 MWe reactors. After some deliberation, TAEK found that it met technical criteria. (It was later reported that TAEK required foreign vendors to take back used fuel, and none except ASE were prepared to do so.) Following commercial advice from TETAS, a government decision was expected in April 2009, but in fact only a series of statements resulted, regarding the cost of power over the first 15 years being too high. Then in August 2009 two agreements between TAEK and Rosatom were signed with much fanfare. One was a nuclear cooperation agreement, the other was a standard one on the early notification on a nuclear accident and the exchange of information on nuclear facilities. These seem to progress the possibility of a Russian nuclear project at Akkuyu, probably with 25% government equity to dampen the likely electricity price rise. The first reactor was expected to come on line in 2016, and others in 2017, 2018 and 2019. However, following a ruling by the country's top legal body, TETAS canceled the Atomstroyexport proposal and said that a new tender would be launched soon. In fact, the parties proceeded to a direct high-level agreement instead. In May 2010 Russian and Turkish heads of state signed an intergovernmental agreement for Rosatom to build, own and operate the Akkuyu plant of four 1200 MWe AES-2006 units as a US$ 20 billion project. This will be its first foreign plant on that BOO basis. Rosatom, through Atomstroyexport and Inter RAO UES, will finance the project and start off with 100% equity in the Turkish project company set up to build, own and operate the plant. Longer-term they intend to retain at least 51% of the company. The Turkish firm Park Teknik and state generation company Elektrik Uretim AS (EUAS) are expected to take up significant shares. Meanwhile, EUAS will provide the site. In July 2010 parliament ratified the May agreement for 4800 MWe at Akkuyu, and in November the Russian parliament ratified it. The project company was registered in December 2010, with Atomstroyexport and Inter RAO UES each having 33.33%, Rosenergoatom having 31.34%, and Atomenergoremont and Atomtekhenergo with 1% each. TETAS will buy a fixed proportion of the power at a fixed price of US$ 12.35 cents/kWh for 15 years, or to 2030. The proportion will be 70% of the output of the first two units and 30% of that from units 3 & 4 over 15 years from commercial operation of each. The remainder of the power will be sold by the project company on the open market. After 15 years, when the plant is expected to be paid off, the project company will pay 20% of the profits to the Turkish government. The project company was to apply for all licences within twelve months, and the first reactor is to be on line within seven years of receiving these, with the others to follow at one-year intervals. Late in 2010 Rosatom announced that construction by Atomstroyexport was expected to start in 2013 and the first unit was planned to be operational in 2018, the others 2019-21. In December 2011 the project company Akkuyu Nukleer Santral Elektrik Uretim had filed applications for construction permits and a power generation license, as well as an environmental impact assessment by the deadline, with a view to starting construction in 2013. Sinop Since February 2008 preparatory work has been under way at Sinop on the Black Sea to build a second nuclear plant there, along with a EUR 1.7 billion nuclear technology centre. A 5600 MWe nuclear plant there is expected to cost about $20 billion. In March 2010 an agreement was signed between Korea Electric Power Corporation (Kepco) and EUAS for Kepco to prepare a bid to build the plant at Sinop, with four APR-1400 reactors starting operation from 2019. The bid, in conjunction with local construction group Enka Insaat ve Sanayi, was due in August. Kepco was to take 40% equity in the plant, and would help with financing. However, this proposal foundered due to the Kepco insistence on receiving electricity sales guarantees from the government, rather than from TETAS as at Akkuyu. Japan then indicated its interest in negotiating to build the 5600 MWe plant, and in December 2010 signed an agreement to prepare a bid for it, with a more definitive agreement expected in March 2011. Toshiba and Tepco were involved with the proposal, using four 1350 MWe ABWR units. However talks were suspended at Japan's request following the Fukushima accident, and Tepco has since opted out. Subsequent reports suggest a possible bid by Mitsubishi Heavy Industries with Kansai, which operates 11 PWRs, and using APWR units. In March 2012 Japan’s Ministry of Foreign Affairs announced that progress continued towards a nuclear cooperation agreement with Japan. A French consortium of Areva and GdF Suez earlier indicated an intention to bid for the project, as had EdF. In November 2011 the prime minister requested the South Korean president to renew the Kepco bid. In April 2012 Canada’s Candu Energy signed an agreement with the Energy ministry or TAEK to undertake a 6-month study on building a 3000 MWe plant at Sinop. The Energy minister said that talks were continuing with firms from South Korea, Japan and China. If any bid is accepted, an intergovernmental agreement would follow and EUAS would take a 25% stake in the plant. Third site There are proposals to build further nuclear capacity at another site, as part of 100 GWe required by 2030. Reports suggest that TAEK has identified Igneada on the Black Sea, 12 km from the Bulgarian border, as a third nuclear power plant site. Ankara - with low seismic risk - and Tekirdag on the northwest coast of the Sea of Marmara have also been mentioned as possible sites. Uranium and fuel cycle Turkey has modest uranium resources, including 7400 tU listed in the 2007 Red Book which are amenable to mining by in situ leaching. The Temrzii deposit is said to have over3000 tU. In March 2010 Anatolia Energy Ltd (then AWH Corp) agreed with Aldridge Uranium Inc to acquire a 75% interest in the main deposits and seek to prove up resources of 7700 tU. Later this was modified to Anatolia acquiring an initial 35% shareholding in Aldridge by issuing shares and having the option to acquire a further 35% stake to take it to 70% through investing a maximum of $15 million within three years to advance the project to a bankable feasibility study level. The Rosatom agreement for Akkuyu also provides for setting up a fuel fabrication plant in Turkey. Non-Proliferation Turkey has had a safeguards agreement in force with the IAEA since 1981 and the Additional Protocol to its safeguards agreement has been in force since 2001.