In response to predicted power supply shortfalls and rising
oil prices Turkey has decided on the nuclear power option.
Turkey wants to build three new nuclear generation plants with
a total generation capacity of 5,000MW by 2015, the first of
which will be developed at Mersin on Turkey's
Mediterranean coast. The Mersin site was chosen as it already
has the required license. Further down the line, a second
nuclear generation plant will be located at Sinop on the Black
On 8 November 2007 the Turkish Parliament enacted the
"Law on the Establishment and Operation of Nuclear
Power Facilities and the Sale of Energy" (the
Nuclear Law) which entered into force on 21
November. The Nuclear Law states that the procedure for the
establishment of nuclear generation plants in Turkey will be
determined by the Ministry of Energy and Natural Resources. The
first tender for a nuclear plant will be organised by TETAS,
the state-owned power wholesale company. The technical
specifications and qualifications that companies must meet in
order to take part in this tender were published by the Turkish
Atomic Energy Institution (TAEK) on 21 December 2007.
The "Regulation on the Principles, Procedures and
Incentives that relate to the Tenders and Contracts to be
executed under the Law on the Establishment and Operation of
Nuclear Power Facilities and the Sale of Energy" (the
Nuclear Regulation) was issued by the Ministry
of Energy and Natural Resources and entered into force on 19
March 2008. The Nuclear Regulation governs the tender process
and selection of companies that will build and operate nuclear
generation plants. The Nuclear Regulation more specifically
covers the following:
the qualifications required of companies wishing to
participate in tenders;
the length of any tender process;
criteria for selecting a company on the basis of the
the assignment of land on which nuclear generation plants
will be established;
the supply of fuel to nuclear generation plants;
the generation capacity of any nuclear generation plants;
the amount, term and unit price of energy to be purchased
from nuclear generation plants.
On 24 March 2008, TETAS announced the tender for the first
nuclear plant in the Turkish official gazette. According to the
tender announcement, the plant will be built in Akkuyu, Mersin
and will have an estimated power output of 4000 MW, plus or
minus 25%. The tender is open to local and foreign companies,
partnerships and consortiums. Bids shall be submitted by 24
September 2008 and shall remain valid for 360 days. Bidders are
required to post a bid bond of 35,000,000 New Turkish Liras.
The tender procedure is subject to the Nuclear Law and the
Nuclear Regulation. The State Procurement Law will not
The tender documents have been prepared by TETAS, which will
conduct the entire process. The Turkish version of the tender
documents, including the tender specifications and the proposed
power purchase agreement to be signed between TETAS and the
selected bidder, are available from TETAS' Internet
website at www.tetas.gov.tr. An English version for
information purposes should be released within short. Parties
who are interested to participate in the tender must purchase
the tender documents for 10,000 New Turkish Liras. Over a dozen
major Turkish and foreign companies are already rumoured to
have an interest in the tender.
The Turkish Energy Market Regulatory Authority (EMRA) will
issue a licence to the company that wins the tender and TETAS
will sign an "offtake" contract (apparently with a
maximum term of 15 years, which seems unrealistically short) to
sell all the electricity produced by the nuclear generation
plant to TETAS. Potential bidders must be aware that the
company awarded the tender will also be responsible for
decommissioning the plant and cleaning up the site at the end
of its use.
Guner Law Office was established in 1996 and has
since grown into one of the major corporate, M&A, banking,
litigation, energy and TMT practices in Turkey. Guner Law
Office is headed by Ece Guner and works with international law
firm Denton Wilde Sapte.
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should
be sought about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
On 6 October 2016, the UK's Secretary of State for Communities and Local Government, Sajid Javid, overruled local councillors on appeal and approved Cuadrilla's plans to explore for shale gas in Lancashire.
On Friday, 7th October the General Assembly of the International Civil Aviation Organisation passed a resolution, resolving to implement the world's first global regime for combatting CO2 emissions from aircraft.
Turkey's energy regulator previously ruled (decision numbered 5709, dated 30 July 2015) that a total capacity of 2,000 MW would be reserved in the period up until 2020 for wind power pre-license applicants to connect to the grid.
The WTO dispute "India – Solar Cells" concerns the Jawaharlal Nehru National Solar Mission ("National Mission"), launched in India six years ago.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).