Akkuyu Nuclear Project Faces Major Delays
Construction on Turkey’s first nuclear power plant, the $24 billion Akkuyu project, has hit a significant slowdown, with work on three of its four reactors currently halted. Only the first reactor remains under active development, as Turkish officials struggle to convince Russia, the project’s builder, to expedite progress. The delays have raised concerns about financing and operational timelines, pushing the expected completion of the first reactor to 2026, a year later than previously anticipated.
Challenges in Construction and Financing
Turkish Foreign Minister Hakan Fidan addressed the construction delays directly with Russian President Vladimir Putin during a visit to Moscow in May. Fidan sought Putin’s assistance in resolving ongoing issues at Akkuyu and requested support for negotiations between Russia’s Gazprom and Turkey’s state pipeline company BOTAŞ, particularly regarding Turkey’s reported $27 billion natural gas debt to Russia.
Energy Minister Alparslan Bayraktar has confirmed that the completion of the first reactor will not occur before 2026, attributing the delay to financing issues and Western sanctions on Russia’s state nuclear corporation, Rosatom. The project is now approximately 18 months behind schedule, with initial plans to begin electricity generation in 2023. Rosatom has shifted its focus solely to the first reactor, leaving the other three units in a suspended state, with heavy machinery on-site shut down and major civil works paused.
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The slowdown has led to many foreign workers, including Russian and Uzbek employees, leaving the site after going unpaid for up to two months. The financial strain is compounded by the fact that Rosatom was expected to send around $7 billion this year to maintain construction momentum, but those funds have not materialized. Consequently, Turkey has struggled to secure alternative financing, prompting the company to request new tax exemptions and government-backed guarantees from Ankara.
Political Implications and Future Prospects
The Akkuyu project, launched under a 2010 intergovernmental agreement, has faced multiple financial hurdles. In 2022, a planned $3 billion transfer from Russia was blocked by U.S. authorities, highlighting the scrutiny of Russian-Turkish energy cooperation. Additionally, Western sanctions have disrupted supply chains, with companies like Siemens unable to ship essential equipment due to export licensing issues. Rosatom is now exploring Chinese alternatives for some components.
As the Akkuyu project struggles, tensions have also emerged regarding Turkey’s second planned nuclear power plant at Sinop. While Rosatom had previously been considered for the Sinop project, Turkey is now in discussions with potential partners from South Korea and China. The uncertainty surrounding both projects may be contributing to the lack of urgency from the Russian side regarding Akkuyu.
Once completed, the Akkuyu plant is expected to supply approximately 10 percent of Turkey’s electricity. Under the agreement, Turkey will purchase a significant portion of its output at a fixed price of 12.35 cents per kilowatt-hour, which is notably higher than the current Turkish average of 8 cents. Turkish lawmakers have expressed concerns over the pricing structure and the predominance of foreign control in the project, as Rosatom holds 99 percent of the shares in Akkuyu Nükleer A.Ş.
Despite these challenges, the Akkuyu project remains a key initiative for President Recep Tayyip Erdogan, who aims to showcase Turkey’s advancements in nuclear energy as the country approaches the 2028 general elections. The project is positioned as a symbol of Turkey’s progress, alongside other national initiatives in defense and technology.
As construction continues to face delays, the future of Turkey’s nuclear ambitions hangs in the balance, with plans for additional nuclear facilities in İğneada also on the horizon. The Akkuyu facility, notable for being the first nuclear project globally to be built under a full build-own-operate model by Rosatom, features four Russian-designed VVER-1200 reactors, which are intended to produce a total of 4,800 megawatts.
