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The role of nuclear energy in competitive power markets: Policy solutions applied to Turkiye

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  • Erdogdu, Erkan

Abstract

The transition to low-carbon energy sources presents critical challenges for competitive electricity markets, particularly in developing economies. This study examines the role of nuclear energy in achieving net-zero targets while addressing market inefficiencies and policy gaps. Using Turkiye as a case study, our findings reveal that nuclear power, despite its low-carbon benefits, faces financial and regulatory barriers that hinder its competitiveness. Through an empirically validated policy model, we propose market-compatible instruments, such as Contracts for Difference (CfD) and capacity remuneration mechanisms, to enhance nuclear investment. These insights offer actionable policy solutions to reconcile nuclear energy deployment with market efficiency.

Suggested Citation

  • Erdogdu, Erkan, 2025. "The role of nuclear energy in competitive power markets: Policy solutions applied to Turkiye," Journal of Policy Modeling, Elsevier, vol. 47(6), pages 1322-1343.
    • Handle: RePEc:eee:jpolmo:v:47:y:2025:i:6:p:1322-1343
    DOI: 10.1016/j.jpolmod.2025.07.003
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    Keywords

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    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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