Turkey is entering a new stage of its energy strategy, negotiating the construction of nuclear power plants with a number of global players, from Russia to Canada. This could involve projects with a total capacity of up to 8 reactors and total investments of up to $100 billion over the next decade, which could radically change the country’s energy balance.
The urgency of the turnaround is reinforced by structural vulnerability: Turkey imports more than 80% of energy resources, which makes it highly sensitive to price shocks. Against the backdrop of rising energy prices and geopolitical instability, Ankara is actually launching a long-term economic transformation.
В energy strategy Turkey is betting on a mix of renewable and nuclear energy to increase the country’s energy sovereignty.
Akkuyu NPP as a precursor to “betting on nuclear”
The flagship of Turkey’s nuclear power development program remains the Akkuyu NPP under construction by Russia’s Rosatom.
The cost of the project is already estimated at $24-25 billion, making it one of the largest infrastructure projects in the country’s history. Total investments, taking into account the growth of the cost, may exceed $30 bln, noted Eurasia Review.
The project is being implemented under the Build-Own-Operate model – in fact, the investor not only builds the plant, but also owns it, recouping its investment through the sale of electricity.
After the launch of all four units with a capacity of 4.8 GW, the plant will be able to cover up to 10% of Turkey’s electricity consumption.
Scaling up: a new nuclear program on the horizon
Negotiations with South Korea, China and Canada mean that Akkuyu is only the first stage.
Turkey plans to build up to 20 GW of nuclear generation over the next decades, including new plants in Sinop and Thrace, according to energy authorities, reports Anadolu Agency.
Given that the cost of one large nuclear power plant is comparable to the Akkuyu project, the total investment could reach $80-100 billion in the long term.
Turkish Energy Minister Alparslan Bayraktar has outlined the strategic goal of peaceful nuclear development: “Reduce dependence on imports and ensure sustainable energy.
If Ankara’s plans to develop nuclear power are realized, the country will be able to solve several key tasks at once:
– Reduce critical dependence on energy imports;
– stabilize inflation by controlling energy costs;
– strengthen its position as a regional energy center.
However, the key issue is financing and geopolitics. Turkey has invested more than $100 billion over the past three years to rebuild earthquake-ravaged cities and provinces in the south. It will be difficult for it to overcome new serious expenditures on its own.
But the example of Akkuyu NPP shows that there are models of cooperation when an investor builds, finances and manages. If this model is scaled up, Turkey could become one of the few countries able to finance energy transformation worth tens of billions of dollars without a critical burden on the budget.
