Russian President Vladimir Putin and Turkish President Tayyip Erdogan on 3 April attended via videolink from Ankara a ceremony marking the pouring of first concrete for unit 1 of the Akkuyu NPP in the southern province of Mersin. This came a day after the Turkish Atomic Energy Authority (TAEK) awarded a construction licence for the plant, Turkey's first NPP.
The $20bn Akkuyu NPP, being built by Russian state nuclear corporation Rosatom, will comprise four VVER-1200 reactor units. “When all four units go online, the plant will meet 10% of Turkey’s energy needs,” Erdogan said, adding that despite delays Turkey still planned to start generating power at the first unit in 2023, the 100th anniversary of the founding of the modern state of Turkey. The other three units are scheduled for operation by 2025. Erdogan told a news conference that the cost of the project may exceed the planned $20bn but was intended to reduce Turkey’s dependence on energy imports.
Russia was awarded the contract in 2010, but the project has met with delays for both technical and political reasons leading to reports that the 2023 target, but Rosatom has said it is committed to the timetable. Putin told the press conference that Turkey and Russia have agreed to do everything in order to fulfil this task. "I am confident that the joint coordinated work of Russian and Turkish specialists will allow us to fulfil all the plans in time,” he said
Rosatom Director General Alexey Likhachov said in a statement: "Rosatom is building in Turkey a cutting edge, tried and tested (Generation III+) NPP … which meets the world's highest safety standards. The model we are building at Akkuyu is already being built in a series. Unit 6 of Novovoronezh NPP and unit 1 of Leningrad NPP II, based on the same design, are already up and running, with the former in commercial operation and the latter launched in February. The safe and efficient operation of these units underscores the reliability of our technologies."
Turkey formally launched construction of the plant with the pouring of concrete for the sub-base foundation of the nuclear in December after a limited construction permit was issued.
JSC Akkuyu Nuklear, the Russian-owned company responsible for the project, announced on 2 April that it had been designated a strategic investor. "Granting of the certificate is of major importance for the economics of the project. In particular, it provides for tax reductions and exemptions (including from income tax and value added tax), as well as custom duties exemption," the company noted
JSC Akkuyu Nuklear was set up in 2010. It is now a subsidiary of JSC Rusatom Energo International (REIN), which is part of Rosatom. REIN was established in 2011 to promote Russian nuclear technologies on the global market. "Obtaining preferential status of JSC Akkuyu Nuklear will positively affect the overall economic efficiency of the project, which in turn will contribute to the growth of the company's attractiveness for Turkish and international investors, said JSC REIN director general Anastasia Zoteeva.
Rosatom is seeking local partners to take a 49% stake in the project, but Likhachov recently said the sale was likely to be postponed until 2019. Rosatom has said Turkish companies will undertake 35-40% of all construction work, valued at $6-8bn.
The Akkuyu NPP project is based on an inter-governmental agreement signed between Russia and Turkey in May 2010. In October 2011, JSC Akkuyu Nuclear received a site licence and in November 2013 its site report was approved. Russia is using a build-own-operate model for the project, meaning it will finance, operate and manage the plant. It will be the world’s first NPP built using this model. JSC Akkuyu Nuclear is not only responsible for supplying the plant, but also for safety during construction and operation, and will have a direct interest in the economic effectiveness of the NPP, both as its owner and operating organisation.
