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

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.