Turkey's Akkuyu Nuclear Plant Faces $22 Billion Cost Burden

The Akkuyu Nuclear Power Plant in Turkey began after a 2013 intergovernmental agreement with Russia was approved by the Turkish parliament. A foundation ceremony for the hydro‑technical structures was held in 2015, and in 2018 President Recep Tayyip Erdoğan and Russian President Vladimir Putin attended the ceremony marking the first unit's foundation.

A 15‑year power‑purchase agreement guarantees the plant 12.35 cents per kilowatt‑hour – about 3.3 times the market price – costing the Turkish state an estimated $22.4 billion over the contract term. The guaranteed rates would require annual extra payments of roughly $1.48 billion for the first two units and $448 million for the remaining units.

Despite more than a decade of construction, none of the units have entered operation. In July 2026 the Turkish parliament passed an omnibus law adding tax incentives for nuclear projects, including a waiver of stamp tax and a VAT exemption on construction and material deliveries. Analysts argue that the project’s high costs and centralized design underscore the need for micro‑scale, distributed energy models.