Evaluating the build-own-operate model for nuclear power plant projects; A case study of Türkiye’s first nuclear power plant agreement with Russia

This paper evaluates the Build-Own-Operate (BOO) model for nuclear power plant projects, using Türkiye's first nuclear power plant agreement with Russia as a case study. Nuclear energy is crucial for addressing global energy demands due to its reliable baseload power and zero greenhouse gas emissions. However, the industry faces significant challenges, including high costs and long commissioning times, which are influenced by contracting types. Traditional models like turnkey, split package, and multi-contracts present several limitations in terms of payment structure, cost, technology, and knowledge transfer. The BOO model offers an alternative, where the contractor is responsible for the design, commissioning, ownership, and operation of the plant throughout its operational life. This approach can lead to timely project completion, deferred payment obligations, and reduced operational risk but requires careful consideration of potential drawbacks such as knowledge transfer, cost control, and long-term operational dependence. The Akkuyu Nuclear Power Plant in Türkiye, developed under an agreement with Russia, is the world's first nuclear power plant implemented through this new model. This project highlights the innovative nature of the BOO model, detailing the benefits and challenges faced, including technology and knowledge transfer, cost structures, and localization efforts. The study provides a comprehensive analysis of the BOO model’s potential in the nuclear industry and offers valuable lessons for future nuclear power projects globally.