Another new nuclear build? Construction in Turkey due to start before the end of March

Russia's Rosatom plans to begin construction of Turkey's first nuclear power plant, Akkuyu, in the first quarter of 2018. By the end of this year, it is expected to sell a 49% stake in the plant to a consortium of local Turkish companies and obtain a construction licence early next year.

Russian company Rosatom will apparently add another nuclear power plant under construction to its portfolio next year. At a time when the fewest power plants in the past decade are under construction, this represents an important step for Rosatom. It is also significant because, following the dispute between Russia and Turkey after the downing of a Russian fighter jet, it appeared that the entire project might ultimately be cancelled.

After the situation calmed, both the Turkish Stream gas pipeline project and the aforementioned Akkuyu power plant project resumed. The final milestones before construction can begin are the sale of a 49% stake to a consortium of local companies and obtaining a licence to build the plant.

If the schedule is met, construction should begin by the end of March 2018. Delays could be expected in the licensing process; however, Turkey is interested in bringing the plant into operation as soon as possible, and there should therefore be willingness on both sides to resolve any potential uncertainties.

Total costs for the new Turkish power plant are expected to exceed 20 billion dollars. However, under its contract with the Turkish government, Rosatom will have a guaranteed price of 123,5 USD/MWh. Unlike the UK contract for Hinkley Point C, this price is not indexed to inflation.

Rosatom also confirmed that once its investment has been repaid, it will return 20 % of its profits to the Turkish government.

The Russian company is also seeking to expand its nuclear reactors into South Africa, where negotiations are at the business model stage. Rosatom is clearly seeking to increase its share of the global market at a time when its main competitors, Areva and Westinghouse, are mired in problems. Rosatom is willing to offer the South African government several cooperation options, as Kirill Komarov confirmed to Reuters.