Turkey's $25 Billion Akkuyu Nuclear Plant, Built by Russia, Faces Delays Towards 2028 Completion

Turkey is nearing the completion of its first nuclear power plant, the Akkuyu Nuclear Power Plant, a significant step towards bolstering its energy independence after decades of effort. The project, valued at an estimated $20-25 billion, is being constructed and will be operated by Russia's state-owned nuclear corporation, Rosatom. As The Wall Street Journal noted in a recent social media post, > "Turkey has spent decades trying to build a nuclear power plant to boost its energy independence. Now, it’s finally getting one thanks to Russia."

The Akkuyu project, located in Mersin Province on the Mediterranean coast, is critical for Turkey, a nation heavily reliant on imported energy, with over 70% of its supply coming from external sources. This nuclear facility aims to diversify the country's energy mix and reduce its dependence on foreign fossil fuels, supporting its rapid economic development. Once fully operational, the plant is projected to meet approximately 10% of Turkey's electricity demand.

The plant features four advanced Russian-designed VVER-1200 reactors, with a combined capacity of 4.8 gigawatts. It is the first nuclear power plant in the world to be constructed under a "build-own-operate" (BOO) model, where Rosatom finances, builds, owns, and operates the facility. This unique arrangement grants Russia significant long-term control over a crucial piece of Turkey's energy infrastructure.

Despite its strategic importance, the Akkuyu project has encountered several challenges and delays. Financing issues, including a reported $7 billion payment delay from Turkey to Rosatom and the blocking of $2 billion by U.S. authorities due to sanctions on Russia, have impacted progress. Supply chain disruptions, such as Siemens' inability to deliver equipment, have also contributed to the slowdown, pushing the anticipated full operational date for all units to 2028, with the first unit now expected online in 2025 or 2026.

The extensive Russian involvement has raised concerns among NATO allies regarding Moscow's expanding influence within a member state. Domestically, Turkish officials and opposition lawmakers have voiced apprehension over the lack of Turkish equity participation and management control in the project, as Rosatom retains a 99% stake. There are also ongoing debates about the long-term implications of relying on a single foreign entity for such a vital energy source.

Despite these hurdles, the Akkuyu Nuclear Power Plant remains a flagship project for Turkey, symbolizing its ambition to become a more energy-independent nation. Rosatom is reportedly seeking to sell a 49% stake in the project, though previous attempts faced commercial disagreements. Turkey also plans to establish at least two more nuclear power plants by 2050, indicating a continued commitment to nuclear energy as a cornerstone of its future energy strategy.