Turkey and Russia Agree on Nuclear Power Deal

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Only months after cancelling its first nuclear power plant project with a Russian consortium, Turkey has signed a joint statement with Russia on a wide range of energy projects including nuclear power.

A document outlining cooperation was signed this week by Russian Deputy Minister Igor Sechin and Turkish Energy Minister Taner Yildiz, guaranteeing that Russian firms will get another chance to build nuclear power plants in Turkey.

In November last year, Turkey pulled the plug on the country's first nuclear power plant by cancelling the contract with a Russian consortium led by Inter RAO UES (Moscow) and Atomstroyexport (Moscow). Tetas (Ankara, Turkey), the Turkish state-owned power company, gave no reason at the time for cancelling the contract for the 4,800-megawatt (MW) Akkuyu plant on the Mediterranean coast. However, the plans had run into trouble with Turkish courts that same week, which ruled that parts of the proposed contract were invalid, in particular, the agreed price of electricity from the plant which the courts deemed far too high. For additional information, see November 23, 2009, news article - Turkey Cancels Contract for First Nuclear Power Plant.

Russian Prime Minister Vladimir Putin was adamant this week that his country held "significant advantages over the competition" for building the new nuclear plant. "We provide loans and equipment, and we give local construction companies ... a share of 20-25%, or even 30%, in the entire volume of contracts. We provide nuclear fuel and are ready to take back spent nuclear fuel for reprocessing. Needless to say, we are expecting a positive decision."

Turkish Energy Minister Yildiiz had previously announced plans for another nuclear power plant to be located at Sinop on the Black Sea. A tender for that project is expected early this year. Turkey wants to have three nuclear power stations in operation by 2020, providing about 20% of the country's energy needs. Turkey is facing the prospect of an energy crisis in 2012.

In addition to the nuclear deals, the countries reaffirmed their cooperation regarding natural gas, with projects such as the proposed Samsun-Ceyhan pipeline, the building of a new liquefied natural gas (LNG) terminal in Ceyhan, and Turkey's allowing Russia to run the planned South Stream gas pipeline through its waters. For additional information, see October 22, 2009, news article - Samsun-Ceyhan Pipeline Project to Turn Turkey into Energy Corridor.

Commenting on South Stream, Putin said: "We have an agreement that before November 10, 2010, the Turkish government will make all the necessary judgements and issue a construction permit. I very much hope this work will be finished as planned."

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