TURKISH NUCLEAR POWER PROGRAMME NUCLEAR ENERGY PROJECT IMPLEMENTATION DEPARTMENT
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1 TURKISH NUCLEAR POWER PROGRAMME NUCLEAR ENERGY PROJECT IMPLEMENTATION DEPARTMENT
2 km Kocaeli (İzmit) BOSBORUS 0 İzmir Konya ANKARA 150 mi İçel (Mersin) REPUPLIC OF CYPRUS Iskenderun Adana SYRIA Gaziantep Kahramanmaraş Sivas Samsun SİNOP SİTE Kayseri BLACK SEA Aksaray TRNC AKKUYU SİTE MEDITERRANEAN SEA Antalya Gemlik Bursa Eskişehir Balıkesir MARMARA DENİZİ İstanbul DARDANELLES AEGEAN SEA GREECE BULGARIA Şanlıurfa TIGRIS LAKE VAN IRAQ Erzurum Diyarbakır Elazığ EUPHRATES Trabzon Hopa Van IRAN ARMENIA GEEORGIA COUNTRY PROFILE
3 Population 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 Average annual growth (%) Years Population (millions) to Urban population (% of total) 38,5 43,9 59,0 64,9 76,3 91,3 2,66 Area (1000 km2) TABLE1 Population density (inhabitants/km2) 770 Economic Data 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$/capita in Average annual growth rate (%) GDP (millions of current US$) to * 67457* * GDP (millions of constant 1998 Turkish Liras) GDP per capita (PPP US$/capita) GDP per capita (current US$/capita) 533* 1518* 2655* * old base year (1987) Reference: Turkish Statistical Institute TABLE
4 Energy Statistic Annual growth rates (%) to 2013 Energy consumption Total Solids Liquids Gases Nuclear Hydro Other Renewables Energy production Total Solids Liquids Gases Nuclear Hydro Other Renewables Total Reference: Ministry of Energy and Natural Resources TABLE3 Net Import (Import Export)
5 WHAT IS TURKISH ENERGY POLICY? 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 efficiently, 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. Security of Supply Competitiveness TURKISH ENERGY POLICY Sustainability
6 Why did Turkey decide to build nuclear power plants (NPPs)? 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 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 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total dependency: 72% Natural Gas Oil Coal Total Electricity Generation Distribution in 2013 Geothermal 0,6% 1% Fuel Oil 3,1% Wind 24,7% Hydropower Biomass 0,5% Natural Gas 43,8% Coal 26,3%
7 What are the projections for electricity supply and demand in Turkey? Projections for year 2023 are that total installed electricity generation capacity will reach 110, ,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. Electricity Demand Projection 500 TWh/yr TWh/yr 300 :7% Rate h t w Gro and Dem Installed Capacity Potential (MW) Installed Capacity in 2013 (MW) Feasible Capacity for Utilization (MW) Hydropower 36,000 22, ,000 Wind 48,000 2, ,000 Solar 50, ,000 Geothermal Biomass 2, , ,600 25, ,600 Renewable Energy Sources TOTAL TABLE4 2023
8 What are the NPP projects in Turkey? 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 VVER1200 AES2006). Rosatom, through Atomstroyexport and Inter RAO UES, finances the Project and start off 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 Therefore, Turkey is expected to have at least MWe installed capacity from NPPs in the next 1015 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.
9 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: Application of companies to online Company Inventory Form Onsite 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. Sectoral Distribution of 500 Turkish Companies 5% Laboratory equipment 6% Occupational Health 10% HVAC 11% Piping 12% Electrical equipment Electromechanical equipment 23% Construction 21% Pressurrized vessels 12%
10 What are the outcomes of onsite visits to companies for capacity assessment? MENR has organized onsite 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: 2) Equipments manufactured in compliance with international standards which are: 3) Machinery Piping installations. Heavy forging machinery, Design, manufacturing and assembly of hydroelectric power plant equipments. Electrical equipment, Heat exchangers Pressure vessels produced for oil and gas refineries, Piping installations. Partnerships with international companies for manufacturing of: Pumps and valves used in NPPs, Piping installations, Nuclear grade steel, IT systems, What are the incentives for investment in Turkey? The incentives for investment in Turkey have three fundamental purposes: 1) 2) 3) Support of strategic investments. Increase the effectiveness of regional incentive applications. Development of least developed regions. Turkey is divided into 6 regions starting from the most developed (1st region) to least developed as given below: 1. Region 2. Region 3. Region 4. Region 5. Region 6. Region
11 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: The Invesment Incentives Program General Investment Incentive Regional Investment Incentive Large Scale Investment Incentive Strategic Investment Incentive Custom Duty Exemption Custom Duty Exemption Custom Duty Exemption Custom Duty Exemption VAT Exemption VAT Exemption VAT Exemption VAT Exemption Tax Reduction Tax Reduction Tax Reduction Social Security Premium Support (Employer s Share) Social Security Premium Support (Employer s Share) Social Security Premium Support (Employer s Share) Land Allocation Land Allocation Land Allocation Interest Support Interest Support VAT Refund Organization Activity Ministry of Energy and Natural Resources Nuclear Energy Policy and Implementation Turkish Atomic Energy Authority Nuclear Regulatory Body Ministry of Environment and Urbanization Environmental Policy and Regulation Energy Market Regulatory Authority Energy Market Regulation Prime Ministry Disaster and Emergency Management Presidency Emergency Preparedness and Response Planning Turkish Electricity Transmission Company Electricity Grid Owner and Operator Turkish Electricity Trading and Contracting Company State Owned Contractor for Purchase and Sales of Electricity TABLE5 What are the national organizations involved in nuclear program of Turkey?
12 Laws Status Law on Turkish Atomic Energy Authority Law on Construction and Operation of Nuclear Power Plants and Energy Sale Environmental Law Law on Electricity Market Nuclear Energy Law (Including amendment to Law on Turkish Atomic Energy Authority) Draft Civil Liability Law in Nuclear Damage Draft Decrees Status Decree on Licensing of Nuclear Installations Regulations Status Regulation on Nuclear and Radiological Emergency Preparedness Regulation on Protection of Outside Workers from Risks of Ionizing Radiation in Controlled Areas Regulation on Radioactive Waste Management Regulation on Safe Transportation of Radioactive Materials Regulation of the Physical Protection of Nuclear Facilities and Nuclear Materials Regulation on Clearance in Nuclear Facilities and Release of Site From Regulatory Control Regulation on Design Principles for Safety of Nuclear Power Plants TABLE6 What are the constituents of legislative and regulatory framework for nuclear program of Turkey?
13 Laws NUCLEAR ENERGY PROJECT IMPLEMENTATION DEPARTMENT Phone: Fax: ANKARA / TURKEY
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