Oil report

Atomstroiexport revises Turkey nuclear tender bid

ANKARA, Jan 19 (Reuters) - Russia’s Atomstroiexport, the only bidder in a tender to build Turkey’s first nuclear plant, has revised its bid after initially offering to sell power at three times the current rate, Turkey’s Energy Minister said.

Energy Minister Himli Guler told reporters on Monday that state power company Tetas was preparing a report on the revised offer from Atomstroiexport, which won the nuclear power licence tender with Turkish partner Park Teknik and Russia's Inter Rao IRAO.MM

Details of the new bid were not announced.

Atomstroiexport had offered to sell power at an average price of $0.2116 per kilowatt hour, Yasar Cakmak, head of state power company Tetas, told a news conference earlier in the day.

The average wholesale price in Turkey is about $0.079 per kilowatt hour. Atomstroiexport’s bid would include covering its construction costs and a forecast for power prices over the life of the station, which could cost as much as $8 billion to build.

Turkey wants to build three nuclear plants to cover about 5 percent of the country’s electricity needs and cut its reliance on energy imports. Its demand has been growing at a rate second only to China’s.

Environmentalists and some economists say nuclear power is too expensive and could create health hazards in a country crisscrossed by earthquake faultlines.

The government took nearly three months to approve the Atomstroiexport bid after no other companies submitted bids in the September tender. It has pledged to revamp a nuclear-tender law to attract more interest before it holds other tenders.

Guler also said the government was preparing draft legislation that would allow for a second nuclear tender for a site along Turkey’s Black Sea coast in the north.

Atomstroiexport’s licence is to build a power station on Turkey’s southern, Mediterranean coast that will have a capacity of about 3,000 to 5,000 megawatts. (Reporting by Orhan Coskun, writing by Ayla Jean Yackley, editing by Anthony Barker)