TURKISH NUCLEAR POWER PROGRAMME

NUCLEARENERGY

PROJECTIMPLEMENTATION

DEPARTMENT

TURKISHNUCLEAR

POWERPROGRAMME

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COUNTRYPROFILE

The population of Turkey is about 77 million, and the population density is about 100 inhabitants per km2 (Table 1). It is estimated that the population of Turkey will reach about 84 millions in 2023.

Table 2 shows the historical data of Gross Domestic Product (GDP). GDP was 810 billion of current US$ and GDP/capita was 10,782 current US$/capita in 2013.

19701

Population(millions)

Years

Population density (inhabitants/km2)

Urban population (% of total)

Area(1000 km2)

35.605

Average annual growth (%)

44.737 56.473 67.804 73.723 76.668 0.95

46 58 73 88 96 100 0.99

38,5 43,9 59,0 64,9 76,3 91,3 2,66

770

19801 19901 20001 20102 20133 2000 to 2013

19701

18825* 67457* 149195* 265384 734929

1241 2884 5849 9172 15666

810012

72436 105739 112388

8.96

533* 1518* 2655* 4130 10067 10782 7.11

3.44

19801 19901 20001 20102 20133 2000 to 2013

GDP(millions of current US$)

GDP (millions of constant 1998 Turkish Liras)

GDP per capita(PPP US$/capita)

GDP per capita(current US$/capita)

Average annual growth rate (%)

* old base year (1987) Reference: Turkish Statistical Institute

TABL

E-1

TABL

E-2

Population

Economic Data

Annual growth rates (%)

Energy consumption

Energy production

1970

1.340.79 2.22 3.37 3.81 4.57 5.03

0.620.45 0.99 1.28 1.23 1.59 1.79

3.39

2.83

0.680.33 1.00 1.36 1.35 1.22 1.31 -0.31

0.040.01 0.08 0.11 0.14 0.19 0.21 5.54

0.730.61 1.06 1.09 1.03 1.37 1.34 1.74

0.580.44 0.79 0.80 0.70 0.92 0.86 0.61

0.110.16 0.16 0.12 0.10 0.12 0.10 -1.53

0.040.01 0.08 0.11 0.14 0.19 0.21 5.54

0.620.18 1.21 2.29 2.84 3.32 3.84 4.40

0.02 0.04 0.06 0.11 0.16 12.25

0.01 0.02 0.03 0.03 0.02 0.00

0.02 0.04 0.06 0.11 0.16 12.25

0.13 0.58 1.03 1.46 1.56 8.60

1980 1990 2000 2005 2010 2012 2000 to 2013

Total

Solids

Liquids

Gases

Nuclear

Hydro

Other Renewables

Total

Total

Solids

Liquids

Gases

Nuclear

Hydro

Other Renewables

Net Import(Import - Export)

Reference: Ministry of Energy and Natural Resources

TABL

E-3

Energy Statistic

Turkey puts in its priorities to establish securing the supply of energy sources have been developed, besides general trends in the world, by analyzing the policies and strategies of all constituents important in regional and global energy dynamics and especially from the perspective of EU acquisitions and directives and Turkey’s geopolitical position. Turkey's fundamental energy policy can be summarized as:

• Minimizing dependency on supply of energy sources from foreign countries,• Diversification of energy sources and routes• Increasing the rate of domestic and renewable energy sources,• Generation, transmission and consumption of energy e�ciently,• Increasing state and private industry capabilities under liberalized energy markets framework, • Activating policies which enforce measures to provide Turkey’s energy demand in a safe, sustainable, economic way with minimum impacts on the environment.

Securityof Supply

SustainabilityCompetitivenessTURKISHENERGYPOLICY

WHAT ISTURKISHENERGYPOLICY?

Countries which can utilize their energy sources in an economic and sustainable way take place in the front of the trade and development pace. Therefore with a population of 77 million and electricity demand increasing by 7 percent annually, Turkey must add NPPs to the share of energy sources used for electricity generation.Nuclear energy has a great importance for Turkey in terms of reducing the dependency on energy import. Net energy import constituted 62% of Turkish foreign trade deficit in 2012. This situation results in the continuation of dependency on energy import and puts pressure on current account balance and energy supply security of Turkey.

Energy Import Dependency

Total Electricity Generation Distribution in 2013

100% -

90% -

80% -

70% -

60% -

50% -

40% -

30% -

20% -

10% -

0% -

Natural Gas Oil Coal

Total dependency: 72%

Natural Gas 43,8%

Biomass 0,5%

Geothermal 0,6%

Coal 26,3% 24,7% Hydropower

3,1% Wind

1% Fuel Oil

Why did Turkey decide to build nuclear power plants (NPPs)?

Projections for year 2023 are that total installed electricity generation capacity will reach 110,000 – 130,000 MW and electricity demand will reach 500 billion kWh. It is clear that almost all of the natural gas and liquid fuels and 30% of coal used for electricity generation in Turkey are imported. On the other hand, even if all feasible renewable energy capacity such as hydropower, wind, solar, geothermal and biomass are used for generating electricity, only half of Turkey’s electricity demand could be supplied from these sources alone.

What are the projections for electricity supply and demand in Turkey?

Electricity Demand Projection

600

500

400

300

200

100

0

2013

246 TWh/yr

500 TWh/yr

2023

Demand Growth Rate: 7 %

36,000

48,000

50,000

2,000

136,600

600

22,289.1

2,759.6

0

224

25,583.5

310.8

36,000

20,000

3,000

2,000

61,600

600

Renewable Energy Sources

Installed Capacity Potential (MW)

Installed Capacity in 2013 (MW)

Feasible Capacity for Utilization (MW)

TABL

E-4

Wind

Hydropower

Geothermal

Biomass

Solar

TOTAL

In May 2010, Turkey and Russia signed an intergovernmental agreement (IGA) for the first NPP to be constructed and operated at the Akkuyu site; with a total of 4 units and installed capacity of 4800 MW (reactor type is VVER-1200 AES-2006). Rosatom, through Atomstroyexport and Inter RAO UES, finances the Project and start o� with 100% equity in the Akkuyu project company set up to build, own, operate and decommission the plant.

Turkey is also planning the construction of second NPP at the Sinop site. To achieve this, an IGA was signed with Japan on 3 May 2013. Therefore, Turkey is expected to have at least 10.000 MWe installed capacity from NPPs in the next 10-15 years. Along with the plans to construct NPPs, Turkey is in the process of enhancing its human resources and nuclear knowledge capacity and updating its existing nuclear legislation by taking into consideration the latest safety standards series issued by the International Atomic Energy Agency (IAEA).

The importance of Akkuyu and Sinop NPPs which will provide a reliable electricity generation source and diversify the energy supply for electricity generation is evident. Akkuyu and Sinop NPPs will generate approximately 80 billion kWh of electricity in total.

What are the NPP projects in Turkey?

What is the localization plan of Turkey for Akkuyu and Sinop NPP projects?

Turkey wishes to increase localization in Akkuyu and Sinop NPP projects which has a market potential of 16 billion US dollars. The assessment of Turkish Industry for participation in NPP projects are conducted by the Ministry of Energy and Natural Resources. Currently more than 500 Turkish Companies have shown interest to these projects and registered to online “Company Inventory Form”. The road map for the localization activities are given below:

5% Laboratory equipment

Electromechanical equipment 23%

12% Electrical equipment

Construction 21% 11% Piping

10% HVAC

6% Occupational Health

Pressurrized vessels 12%

Sectoral Distribution of 500 Turkish Companies

01

02

03

04

Application of companies to online Company Inventory Form www.nukleer.gov.tr

On-site visits for capacity assessment of companies who have filled the Company Inventory Form.

Gap analysis of companies who have filled the Company Inventory Form

Implementation of capacity development plans for these companies.

MENR has organized on-site visits together with universities, chambers of industry and regional development agencies. The taken outcomes of these visits are given below: 1) Experienced manufacturing companies for: • Machinery • Piping installations. • Heavy forging machinery, • Design, manufacturing and assembly of hydroelectric power plant equipments. 2) Equipments manufactured in compliance with international standards which are: • Electrical equipment, • Heat exchangers • Pressure vessels produced for oil and gas refineries, • Piping installations. 3) Partnerships with international companies for manufacturing of: • Pumps and valves used in NPPs, • Piping installations, • Nuclear grade steel, • IT systems,

The incentives for investment in Turkey have three fundamental purposes: 1) Support of strategic investments. 2) Increase the e�ectiveness of regional incentive applications. 3) Development of least developed regions. Turkey is divided into 6 regions starting from the most developed (1st region) to least developed as given below:

What are the outcomes of on-site visits tocompanies for capacity assessment?

What are the incentives for investment in Turkey?

1. Region 2. Region 3. Region Region4. Region5. Region6.

The opportunities of application for incentives improve as the number of region selected for investment increases. The investment incentive types which are specified in Turkish legislation and the opportunities for investors are summarized below:

What are the national organizations involved in nuclear program of Turkey?

The Invesment Incentives Program

General InvestmentIncentive

• Custom Duty Exemption

• VAT Exemption

• Custom Duty Exemption

• VAT Exemption

• Tax Reduction

• Social Security Premium Support (Employer’s Share)

• Land Allocation

• Interest Support

• Custom Duty Exemption

• VAT Exemption

• Tax Reduction

• Social Security Premium Support (Employer’s Share)

• Land Allocation

• Interest Support

• VAT Refund

• Custom Duty Exemption

• VAT Exemption

• Tax Reduction

• Social Security Premium Support (Employer’s Share)

• Land Allocation

RegionalInvestmentIncentive

Large ScaleInvestmentIncentive

StrategicInvestmentIncentive

Organization ActivityTA

BLE-

5

Turkish Atomic Energy Authority

Ministry of Energy and Natural Resources

Energy Market Regulatory Authority

Prime Ministry Disaster and Emergency Management Presidency

Turkish Electricity Transmission Company

Turkish Electricity Trading and Contracting Company

Ministry of Environment and Urbanization

Nuclear Regulatory Body

Nuclear Energy Policy and Implementation

Energy Market Regulation

Emergency Preparedness and Response Planning

Electricity Grid Owner and Operator

State Owned Contractor for Purchase and Sales of Electricity

Environmental Policy and Regulation

What are the constituents of legislative and regulatory framework for nuclear program of Turkey?

Laws Status

TABL

E-6

Law on Construction and Operation of Nuclear Power Plants and Energy Sale

Law on Turkish Atomic Energy Authority

Law on Electricity Market

Environmental Law

In Force

In Force

In Force

In Force

Draft

Draft

Regulations Status

Regulation on Protection of Outside Workers from Risks of Ionizing Radiation in Controlled Areas

Regulation on Nuclear and Radiological Emergency Preparedness

Regulation on Safe Transportation of Radioactive Materials

Regulation on Radioactive Waste Management

In Force

In Force

In Force

In Force

In Force

In Force

In Force

Regulation of the Physical Protection of Nuclear Facilities and Nuclear Materials

Regulation on Design Principles for Safety of Nuclear Power Plants

Regulation on Clearance in Nuclear Facilities and Release of Site From Regulatory Control

Decrees Status

Decree on Licensing of Nuclear Installations In Force

Nuclear Energy Law (Including amendment to Law on Turkish Atomic Energy Authority)

Civil Liability Law in Nuclear Damage

Laws

NUCLEAR ENERGY PROJECT IMPLEMENTATION DEPARTMENTPhone: + 90 312 222 74 32 • Fax: + 90 312 215 35 96

ANKARA / TURKEY