Turkey resorts to nuclear energy to meet its increasing demand

Turkey needs to make a total $70 billion investment in energy production and distribution network by 2020 to meet its increasing demand, a government body said this week. It also said net energy import in 2008 is expected to hit $46-47 billion.

Energy Minister Hilmi Guler admitted the urgent need of increasing energy production and ruled out any delay or postponement in Turkey's first nuclear power plant tender, saying, "We have no time to lose."

In 2020, energy usage in industry is expected to rise to 78.7 million ton oil equivalent (mtoe) from 31 mtoe in 2006; in housing to 47.5 mtoe from 23.7 and in transportation to 34 mtoe from 14.9 mtoe, according to official projections.

Nuclear energy is seen as the key to meet the increased energy demand. Although the debates are underway on the security concerns of nuclear energy, the government does not want to lose any time on launching the project.

The deadline for submitting bids in the nuclear tender is Sept. 24. The government rejected demands of four interested companies for a six-month extension to prepare their tenders due to problems in financing the project.

The first nuclear power plant is planned to have a capacity of 3,000-5,000 megawatts. The Turkish Electricity Trading and Contracting Company (TETAS) will sign a contract with the lowest bidder to purchase the power generated in this nuclear plant for at least 15 years following the start of operations.

Turkey had initiated a tender for the construction and operation of a nuclear power plant in the Akkuyu district of Mersin province in March.

French-Belgian Suez Tractebel, Canadian AECL, Russian AtomStroyExport-ERG consortium, South Korean KEPCO-Turkish ENKA consortium, French Vinci-Chinese Nuclear Power Co-Turkish Park Holding consortium, Turkey’s Sabanci Holding-U.S. General Electric-Spanish Iberdrola consortium, Turkish Alasim-Alarko, Turkish Hattat Holding and Belgian Unit Investment-Turkey's Dogan Holding-Anadolu Endustri Holding are expected to bid in the tender.

Guler held a meeting with potential bidders on Monday in Ankara. Energy Market Regulatory Agency (EPDK) President Hasan Koktas, Energy and Natural Resources Undersecretary Selahattin Cimen and Turkish Atomic Energy Agency (TAEK) President Okay Cakiroglu also attended the meeting.