News
Japan Plans to Abandon Nuclear Power Plant Construction Project in Türkiye
According to a report by Nihon Keizai Shimbun on December 4, the Japanese government, Mitsubishi Heavy Industries and other public-private alliances plan to abandon the nuclear power plant construction project in Turkey, and final coordination has now been launched. The construction cost ballooned to nearly twice what was originally envisaged, and it was impossible to reach a compromise with Turkey on terms. Türkiye’s new nuclear power plant project is one of the core of the Japanese government’s infrastructure export strategy. As it is difficult to expect new nuclear power plant projects in Japan, Japan will have to adjust its nuclear power plant strategy.Regarding the construction of new nuclear power plants, the governments of Japan and Turkey reached an agreement in 2013. The Japanese-French business alliance centered on Mitsubishi Heavy Industries originally planned to build four nuclear power units in Sinop on the Black Sea coast. Initially, we strived to start construction in 2017 and put Unit 1 into operation in 2023, but the project has never been advanced.
Mitsubishi Heavy Industries, which is responsible for the construction, submitted a commercialization investigation report to Turkey at the end of July. The construction cost is nearly twice what was originally envisaged, and the total construction cost seems to have reached 5 trillion yen. Due to the impact of the 2011 March 11 Great East Japan Earthquake, safety countermeasure costs increased significantly.
In addition, the sharp depreciation of the Turkish currency, the lira, has also led to increased costs. Mitsubishi Heavy Industries adjusted the total construction fee, but it is said that it was unable to reach a compromise with the Turkish government regarding the post-construction electricity sales price and funding plan. The head of Mitsubishi Heavy Industries previously stated that "a judgment will be made within the scope of economic rationality."
On the other hand, the Japanese government will also discuss maintaining support for energy projects and launch a new cooperation framework. Specific measures will be finalized in the future, but some analysts believe that the construction of cutting-edge coal-fired power plants to curb carbon dioxide (CO2) emissions will be proposed.
Overseas exports of nuclear power plants have been promoted jointly by Japanese nuclear power companies and government departments such as Japan’s Ministry of Economy, Trade and Industry. Japan's remaining overseas projects are now only those planned by the Japanese government and Hitachi Manufacturing in the UK. Hitachi signed a memorandum of understanding with the British government in June to advance the project, which will speed up coordination for the final decision.
