Recent Status of Nuclear Energy Programme in Turkey

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1 Recent Status of Nuclear Energy Programme in Turkey Ayşen TONGAL Turkish Atomic Energy Authority IAEA Interregional Workshop on Advanced Nuclear Reactor Technology for Near Term Deployment, July 2011, Vienna

2 National Nuclear Power Program The Turkish energy policy is concentrated on the assurance of energy supply in a reliable, sufficient, timely manner, in economic and clean terms and in a way to support and orientate the targeted growth and social developments. Utilization of nuclear energy was included in almost every 5 Years Development Plan prepared by State Planning Organization since 1960s Strategy Paper Concerning the Electricity Market and Security of Supply approved by High Planning Council in the share of nuclear in electricity generation is planned to reach minimum 5% by 2020 and a further increase in this share is planned in long term. Law on Construction and Operation of Nuclear Power Plants and Energy Sale (2007,Law No: 5710), nuclear power plant investments may be based on public, private or public-private partnership (PPP). 2

3 Past Experience Studies to build a NPP started in 1965 Early Studies: a MWe NPP would have been in operation in 1977 (site selection issues) First Tender: site license was granted for Akkuyu in ASEA-ATOM and STAL-LAVAL companies awarded as the best bidders in (Loan guarantee withdrawn by Swedish Government in 1980) Second Tender: Three companies have been awarded to build four nuclear power plants (1 unit CANDU (AECL) and 1 unit PWR (KWU) in Akkuyu and 2 units BWR (GE) in Sinop). (financial issues, BOT without government guarantee) Third Tender: Three companies made proposals: AECL, NPI and Westinghouse. (Major Economical Crisis in 2000) 3

4 Last Tender/ Competition (4th Tender) Law on Construction and Operation of Nuclear Power Plants and Energy Sale (Law No. 5710) Issued on 21 st November 2007 The purpose: To stipulate the procedures and principles regarding the construction and operation of nuclear power plants for electricity production, and energy sale in accordance with energy plan and policies. The Law gives priority to the NPPs built by private sector. However, public private partnership is also possible. Furthermore, in case a need arise public investments may be done to build and operate NPPs. A set of criteria was issued by TAEK on 19 th December 2007 A competition was held by TETAS on 24 th September 2008 Sole bid from Atomstroyexport-InterRAO-Park Holding Consortium Due to legal issues process was cancelled by TETAS on 20 th November

5 Last Tender (Cont d) Method in Law No: 5710 The competition was not a tender to buy, install or operate an NPP by the Government Sole aim was to give incentives and priority to private companies who would volunteer to build a NPP to produce electricity The Government would have guaranteed to buy electricity from a MWe NPP to be installed in Akkuyu Site between the years Competition criteria was the unit electricity price 5

6 Organizational structure Universities Research Centers TSO s 6

7 International treaties and conventions NAME Treaty Banning Nuclear Weapons Tests in the Atmosphere, in Outer Space and Under Water RATIFICAT ION Treaty on the Non-proliferation of Nuclear Weapons Convention on Physical Protection of Nuclear Material Convention on Assistance in the Case of a Nuclear Accident or Radiological Emergency Convention on Early Notification of a Nuclear Accident Convention on Nuclear Safety Comprehensive Nuclear Test Ban Treaty Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management Not ratified yet

8 Nuclear liability conventions NAME Paris Convention (1960 Paris Convention on Third Party Liability in the Field of Nuclear Energy) Protocol to Amend the Convention on Third Party Liability in the Field of Nuclear Energy of 29 July 1960 Protocol to Amend the Convention on Third Party Liability in the Field of Nuclear Energy of 29 July 1960, as Amended by the Additional Protocol of 28 January 1964 Joint Protocol Relating to the Application of the Vienna and the Paris Conventions Protocol to Amend the Convention on Third Party Liability in the Field of Nuclear Energy of , as Amended by the Additional Protocol of and by the Protocol of RATIFICAT ION Not ratified yet 8

9 Bilateral Agreements Turkey signed bilateral agreements for cooperation in peaceful uses of nuclear energy with the following countries; Canada Argentine Germany France Korea United States of America Russian Federation 9

10 International Governmental Agreement (IGA) with Russian Federation Conditions are not much different from the latest competition based on 5710 An inter-governmental agreement was achieved with the Russian Federation for Akkuyu Site. (the Agreement was ratified by the Parliaments) NPP Project will be implemented by a private company (a joint venture with majority share of a foreign consortium, Turkish Government may have a share) First NPP is expected to be online in 2020 Project will be subject to all applicable laws, regulations and codes in Turkey. All necessary licenses, permits and approvals from related governmental organizations shall be obtained by the Project Company. 10

11 Management, Funding & Financing Major IGA statements: Russian Party will establish a joint stock Project Company in Turkey initially with 100% share Russian Party s share will never be below 51% at any time (and Russian Government will be the guarantor of the Project) Project company will be the owner of NPP General Contractor will be JSC Atomstroyexport (ASE) Russian Party shall provide funding for ASE for the construction of NPPs. 15 years of PPAs will be awarded to Project Company for 70% of the electricity generated by unit 1 and 2 and 30% of the electricity generated by unit 3 and 4 Generated electricity shall be bought by TETAS in accordance with PPA for 15 years at US cents/kwh (fixed price-no escalation) on weighted average. In case of less production than the volume stipulated in PPA, the Project Company shall fulfill its obligations by providing the lacking volume of electricity. 11

12 Site Allocation IGA :Turkish Party shall allocate Akkuyu Site to the Project Company free of charge until the decommissioning of NPP. Other additional land shall also be allocated free of charge if required. Akkuyu Site was determined in Some of the studies have been updated since 1976 Majority of the site parameters must be updated. 12

13 Sinop Site Selection For the selection of Sinop Site 8 candidate sites evaluated Methods suggested by IAEA used 43 parameters under 4 categories (engineering, economical, social, environmental) considered Detailed analysis have been carried on mostly by Turkish universities and governmental organizations. Private companies and IAEA assistance have been used when necessary 13

14 Nuclear Fuel Cycle, Radioactive waste and Decommissioning Major IGA statements: 14 Nuclear Fuel shall be sourced from suppliers on the basis of long term agreements entered into between the Project Company and the suppliers. Subject to separate agreement that may be agreed by the Parties, spent nuclear fuel of Russian origin may be reprocessed in Russia Federation. Project company is responsible for the decommissioning and the waste management of the NPP. Within this framework, Project Company will make the necessary payments to relevant funds. For PPA period; 0.15 US cent/kwh shall be paid for spent fuel and radwaste management 0.15 US cents/kwh shall be paid for decommissioning.

15 Human Resources and Local Industry IGA statement: Turkish companies and citizens will be included in the project to the extend possible. Industrial Capacity in Turkey Strong and experienced civil engineering and construction sector Local industries can easily be modified to manufacture most of the non-nuclear grade components In the long term with a large nuclear power program manufacturing of nuclear grade components can be feasable and profitable Manpower Capacity in Turkey Internationally acknowledged universities graduating competent manpower One undergraduate and four post-graduate level nuclear engineering education in the universities Technical high schools can be adapted to the needs of nuclear technology 15

16 Environmental Protection IGA statement: Project will be subject to all applicable laws, regulations and codes in Turkey. All necessary licenses, permits and approvals from related governmental organizations shall be obtained by the Project Company. Environmental Law, No: 2872 In accordance with Regulation on EIA, An environmental impact assessment report will be submitted to ME. 16

17 Near Term Agenda Licensing of Akkuyu Project Improvement of regulatory framework Draft Nuclear Energy Law Draft Third Party Nuclear Liability Law Construction of four unit NPP in Sinop Site IGA negotiations with Korea (suspended) IGA negotiations with Japan (suspended) Depending on the results of negotiations, other vendors (suppliers) will be invited for negotiations. Selection of alternative sites Waste disposal issues 17

18 THANK YOU