Energy
January 9, 2025
Border
Less than
1
min read

Siemens Faces Lawsuit Over Withheld Equipment for Türkiye’s First Nuclear Plant

Russian state nuclear energy corporation Rosatom has announced plans to sue Siemens over the German company’s refusal to deliver prepaid equipment crucial for the Akkuyu Nuclear Power Plant in Türkiye. The dispute has caused delays and increased costs for the $20 billion project, which is expected to generate 4,800 megawatts (MW) of electricity once fully operational.
Siemens Faces Lawsuit Over Withheld Equipment for Türkiye’s First Nuclear Plant
An aerial view of Akkuyu Nuclear Power Plant (NPP), which is expected to meet 10 percent of Turkiye’s electricity needs - Anadolu

 The construction of Türkiye’s first nuclear power plant, the Akkuyu Nuclear Power Plant, has hit a significant roadblock due to a dispute with Siemens Energy. Rosatom, the Russian state nuclear energy corporation overseeing the project, has stated its intention to take legal action against the German company for failing to deliver essential, prepaid equipment.  

The withheld components, which include equipment for a gas-insulated substation, are critical for transmitting electricity from the plant to Türkiye’s grid. The delay has forced Türkiye to source alternative equipment from China, leading to additional costs and project timeline adjustments.  

Rosatom’s General Manager, Aleksey Likhachev, criticized Siemens for its actions, stating that the refusal to deliver the already manufactured equipment has caused substantial disruptions.  

“Lawsuits will be filed. The non-delivery of pre-paid equipment has not only delayed progress but also incurred extra costs for procurement and installation,” Likhachev told Rossiya 24.  

Siemens Energy has not publicly disclosed the reason for withholding the parts, but Türkiye’s Energy and Natural Resources Minister, Alparslan Bayraktar, suggested that it may be linked to Western sanctions on Russia following its 2022 invasion of Ukraine.  

Bayraktar described the decision as “political” and emphasized that the equipment in question is not subject to any sanctions or legal restrictions. He further stated that “over 90% of the first reactor’s construction is complete, but Siemens’ failure to supply equipment has caused unnecessary delays and costs.”  

The Akkuyu Nuclear Power Plant, a $20 billion initiative with a capacity of 4,800 MW, is expected to meet 10% of Türkiye’s electricity needs once fully operational. The project, which began under a 2010 agreement between Rosatom and Ankara, will prevent the annual import of 7 billion cubic meters of natural gas and reduce carbon emissions by 35 million tons, according to officials.  

The plant’s first reactor is more than 90% complete, with trial production slated to begin in the coming months. However, the delay caused by Siemens’ actions has pushed back the launch timeline, which was initially set for 2023. The remaining three reactors are scheduled to be operational by 2028.  

Türkiye has been making significant investments in nuclear and renewable energy to reduce its dependence on imported natural gas and achieve its 2053 net-zero emission target. Alongside Akkuyu, the country plans to construct two additional nuclear plants in the Black Sea province of Sinop and the northwest region of Thrace.  

Additionally, Türkiye is exploring the integration of small modular reactors (SMRs) to diversify its energy mix, aiming to reach a nuclear generation capacity of 15,000 MW.  

Officials in Türkiye have hinted at potential fines against Siemens Energy over the non-delivery of equipment. While Siemens has long been a partner in various Turkish energy projects, this dispute marks a significant strain in the relationship.  

As Türkiye moves forward with its nuclear ambitions, the Akkuyu project remains a cornerstone of its energy strategy, promising cleaner energy and reduced reliance on fossil fuels.

Close Icon