BY BESTENIGAR KARA
THE AKKUYU NUCLEAR POWER PLANT (NPP), which is currently under construction at Akkuyu in Buyukeceli, Mersin, is estimated to make a minimum contribution of USD 50bn to Turkey’s gross domestic product (GDP), including tax revenues, according to Anton Dedusenko, Vice Chairman of the Board of Directors of Akkuyu Nukleer AS. “Five-six people must be employed in the sub-industries per employee at an NPP to supply necessary products, materials, and services. Considering the employment at the Akkuyu NPP, jobs created in the sub-industries make a major contribution to the Turkish economy themselves,” Dedusenko told in an exclusive interview with TR MONITOR during his business visit to Istanbul within the scope of the 5th Nuclear Power Plants Expo and 9th Nuclear Power Plants Summit (NPPES 2023) on June 21-22.
Anton Dedusenko stated that an intergovernmental agreement was signed between Turkey and Russia on May 12, 2010, for the Akkuyu NPP in the southern Mersin province. As part of the agreement, a subsidiary of the Russian State Atomic Energy Corporation Rosatom would build, own, and operate the Akkuyu NPP to consist of four power units with Russian-designed VVER (Water-Water Energetic Reactor)-1,200 reactors and have a total installed capacity of 4,800 megawatts (MW). That is why Akkuyu Nukleer AS was established with a 100% Russian capital on December 13, 2010. The subsidiary is subject to the laws of the Turkish Republic. The firm is responsible for the design, construction, maintenance, operation, and decommissioning of the Akkuyu NPP in line with the long-term contract.
The Akkuyu NPP will be the first NPP in Turkey and the first build-own-operate (BOO) NPP in the world. The Akkuyu NPP is also the biggest joint project between Turkey and Russia. Anton Dedusenko said the cost of the project hovers around USD 20bn.
The Akkuyu NPP’s groundbreaking ceremony was held on April 3, 2018, after which construction started on the first unit. The construction is currently in an active phase. “All construction work and infrastructure development activities at the Akkuyu NPP are performed in line with the norms and laws of Turkey and recommendations of the International Atomic Energy Agency (IAEA) for the entire period of its construction and operation,” Dedusenko noted.
Akkuyu Nukleer AS closely cooperates with the Turkish side to develop efficient partnership relations. The company is regularly in talks and holds meetings, working consultations, and coordination works for project solutions and licensing issues with the Energy and Natural Resources Ministry, Environment, Urbanization and Climate Change Ministry, Agriculture and Forestry Ministry, Treasury and Finance Ministry, and other government institutions such as the Nuclear Regulatory Authority (NDK), the Turkish Energy, Nuclear and Mineral Research Agency (TENMAK) Electricity Generation Company (EUAS), and Turkish Electricity Transmission Corporation (TEIAS).
The majority of the necessary equipment and high-technology products to establish the Akkuyu NPP project are supplied by Russian enterprises. “But the project also provides maximum participation of Turkish companies and other foreign-based firms in the construction and installation work,” Dedusenko said, noting that Turkish specialists will engage in the operation of the Akkuyu NPP at all stages of its life cycle.
TO EMPLOY 4,000 PEOPLE
Dedusenko noted that the Akkuyu NPP is estimated to serve for 60 years with the possibility of extension for another 20 years. The plant’s life cycle paves the way for the development of the region in the long run, creating jobs and providing access to a stable source of green electricity for Turkish citizens and enterprises for many years to come.
Approximately 30,000 people were employed on the Akkuyu NPP construction site during the most active project phase. 140,000 tons of reinforcing bars have been used, and 1.3 million cubic meters of concrete have been poured for construction. Over 25,000 people, 80% of whom consists of Turkish citizens, work at the construction site. The plant will employ 4,000 people when it becomes fully operational.
Moreover, Turkish personnel are actively trained for jobs at the Akkuyu NPP. Russia provides an opportunity for Turkish students to be educated at Russian universities to implement the intergovernmental agreement. Within this frame, Turkish students study at the National Research Nuclear University MEPhI (Moscow Engineering Physics Institute) and St. Petersburg Polytechnic University (SPbPU). All graduates will start to work at the Akkuyu NPP after they receive the necessary education and training at the educational and technical centers of Rosatom. The number of Turkish engineers to work at the Akkuyu NPP will reach 600 at the end of 2027.
WILL REDUCE GAS IMPORT BILL BY USD 1.5BN
The first nuclear fuel was delivered by air and sea to the plant site on April 27, 2023. Thus, Turkey’s Akkuyu NPP has been officially granted nuclear facility status, and Turkey has risen to the league of countries with nuclear power in the world.
The Akkuyu NPP is set to begin generating power later this year. Each of the four reactors will have a capacity of 1,200 MW. All units of the nuclear power plant will be put into service gradually until 2028. The Akkuyu NPP will uninterruptedly generate around 35 billion kilowatt-hours of electricity annually and meet 10% of Turkey’s electricity consumption when it becomes fully operational. The plant will also reduce Turkey’s natural gas import bill by USD 1.5bn annually and positively affect the hike in the national income. In line with the localization target, the project will contribute around USD 6.5bn to the Turkish manufacturing industry.
Touching on the environmental impact of the Akkuyu NPP, Anton Dedusenko emphasized that nuclear power is a zero-emission clean energy source. “One kilogram of uranium, used in nuclear fuel, creates energy equivalent to 100 tons of high-quality coal or 60 tons of oil when it fully burns,” he said, noting that they follow the commitment of Turkey to reach net zero carbon emissions by 2053. As part of the Paris Agreement, Turkey is obliged to reduce emissions by 21% until 2030. “Mathematically, 15% of this target will be achieved by the Akkuyu NPP alone,” Dedusenko noted. The Akkuyu NGS will annually prevent emissions of 17 million tons on average.
20% OF THE SALES REVENUE TO BE DELIVERED TO TURKEY
Dedusenko noted that NPPs come to the forefront in terms of price stability. To him, the raw material creates a high cost in power generation. “The raw material cost per megawatt hour reaches around 5% at NPPs and 60% at the coal and natural gas-fired plants,” he said. “A possible volatility reflects on prices. NPPs ensure price stability in this sense.”
As Dedusenko says, 20% of the revenue to be obtained from the sales of the electricity to be generated from the Akkuyu NPP at the free market will be delivered to Turkey in line with the intergovernmental agreement. “Considering the Akkuyu NPP’s life cycle of 60+20 years, we will sell the majority of electricity at the free market. Therefore, electricity will be sold at the price set by the Turkish market.”
Anton Dedusenko also stated that 50% of the electricity, which will be produced at the Akkuyu NPP, will be sold at USD 12.35 per kilowatt hour for 15 years while the remainder will be put on the free market in line with the intergovernmental agreement. “USD 12.35, included in the agreement, covers a short period of the Akkuyu NPP’s life cycle. Considering the average change in Turkey’s electricity prices, this figure is lower than the prices recorded last year,” he added.
WE CAN MEET THE POSSIBLE NPP DEMAND: DEDUSENKO
Akkuyu Nukleer AS Vice Chairman Anton Dedusenko stated that Rosatom has a wide range of products beyond the construction of NPPs. “Rosatom actively develops wind energy and evaluates to build wind farms abroad, including in Turkey,” Dedusenko said. Stressing that Rosatom also develops technologies for energy storage, the Akkuyu Nukleer AS Vice Chairman added: “Rosatom develops lithiumion traction batteries for electric transport and fixed systems for energy accumulation as well as products for emergency and uninterruptible power supply and storage systems for renewables.”
ROSATOM EVALUATES WIND FARM PROJECTS IN TURKEY
Akkuyu Nukleer AS Vice Chairman Anton Dedusenko stated that Rosatom has a wide range of products beyond the construction of NPPs. “Rosatom actively develops wind energy and evaluates to build wind farms abroad, including in Turkey,” Dedusenko said. Stressing that Rosatom also develops technologies for energy storage, the Akkuyu Nukleer AS Vice Chairman added: “Rosatom develops lithium-ion traction batteries for electric transport and fixed systems for energy accumulation as well as products for emergency and uninterruptible power supply and storage systems for renewables.”