Power Plant

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Lore & Background

The Bushehr Nuclear Power Plant was the idea of Shah Mohammad Reza Pahlavi, who wanted a national electrical grid powered by nuclear plants. In August 1974, the Shah said, 'Petroleum is a noble material, much too valuable to burn... We envision producing, as soon as possible, 23,000 megawatts (MW) of electricity using nuclear plants.' Construction began in 1975 by German Kraftwerk Union AG, a joint venture of Siemens and AEG-Telefunken. Around 5,500 Germans lived in the camp, including around 2,800 family members, with infrastructure including a German school, a hospital, and an own television studio. Kraftwerk Union fully withdrew in July 1979 after work stopped in January 1979, with the single reactor (Unit 1) at about 50-60% completion, citing Iran's non-payment of $450 million in overdue payments. The reactor was then damaged by multiple Iraqi air strikes from 1984 to 1988 during the Iran–Iraq War.

In Their Own Story

In 1990, Iran began to look outwards for partners for its nuclear program. A Russian–Iranian intergovernmental outline was signed on 25 August 1992. Two years later, Russian specialists toured the site for the first time to assess the damage from time and air raids. The final contract between Iran and Russia's Ministry for Atomic Energy was signed on 8 January 1995. Russia's main contractor, Atomstroyexport, would install a V-320 915 MWe VVER-1000 pressurized water reactor into the existing Bushehr I building. The project faced difficulties: financial problems, inflation, the need to integrate German and Russian technology, and the extremely hot and humid climate with temperatures reaching 50 °C. German engineers had left behind 80,000 pieces of equipment with little technical documentation. The 1998 addendum put the final value at just over $1 billion, but the sum was not adjusted for inflation, causing funding shortages. In February 2007, work faltered and Atomstroyexport reduced employees from 3,000 to 800. An agreement was reached where Iranians would compensate for growing costs after the reactor went live.

Reader's Guide

The Bushehr Nuclear Power Plant project is considered unique in terms of its technology, the political environment, and the challenging physical climate. The extremely hot and humid climate of the Bushehr area, with significant amounts of brine in the air due to the proximity of the ocean, represented a special challenge. Even stainless steel can rust, and a special painting technology had to be developed. In summer, temperatures can reach 50 °C. While German companies worked at the site, workers had a special clause in their contracts to allow them to stop working during summer heat waves. The plant started adding electricity to the national grid in September 2011, and opened in September 2011, attended by Russian Energy Minister Sergei Shmatko and head of the Rosatom Sergey Kiriyenko. In August 2013, the head of Rosatom said the state company would soon sign documents transferring operational control to Iran, and on 23 September 2013, operational control was transferred. In November 2014, Iran and Russia signed an agreement to build two new nuclear reactors at the Bushehr site, with an option of six more at other sites later. Construction started in March 2017.

Did You Know?

• The Bushehr plant is the first civilian nuclear power plant built in the Middle East.
• German contractors left behind 80,000 pieces of equipment with little technical documentation when they withdrew in 1979.
• The site was repeatedly bombed during the Iran–Iraq war from 1984 to 1988.
• Around 5,500 Germans lived in a self-contained camp at the construction site, which included its own school, hospital, and television studio.
• The plant's reactor design is identical to the second reactor unit B of the German Biblis Nuclear Power Plant.

Origins and German Construction Era

The facility was the idea of the Shah Mohammad Reza Pahlavi. He wanted a national electrical grid powered by nuclear power plants. Bushehr would be the first plant, and would supply energy to the inland city of Shiraz. In August 1974, the Shah said, 'Petroleum is a noble material, much too valuable to burn... We envision producing, as soon as possible, 23,000 megawatts (MW) of electricity using nuclear plants.' In 1975, German Kraftwerk Union AG, a joint venture of Siemens and AEG-Telefunken, signed a contract worth US$4–6 billion to build the pressurized water reactor nuclear power plant. The two 1,196 MWe reactors, subcontracted to ThyssenKrupp for building the containment, was identical with the second reactor unit B of the German Biblis Nuclear Power Plant. The first reactor was to be finished by 1980 and the second one by 1981. Around 5,500 Germans lived in the camp belonging to the construction site, including around 2,800 family members. The infrastructure included the German school abroad in Bushehr, the hospital and an own television studio. There has never been another German construction site abroad on this scale. Kraftwerk Union fully withdrew from the Bushehr nuclear project in July 1979, after work stopped in January 1979, with one reactor 50% complete, and the other reactor 85% complete. They said they based their action on Iran's non-payment of $450 million in overdue payments. The company had received $2.5 billion of the total contract.

War Damage and Russian Intervention

The reactors were damaged by multiple Iraqi air strikes from 1984 to 1988, during the Iran–Iraq War. In 1990, Iran began to look outwards towards partners for its nuclear program; however, due to a radically different political climate and punitive U.S. economic sanctions, few candidates existed. A Russian–Iranian intergovernmental outline for construction and operation of two reactor units at Bushehr was signed on 25 August 1992. Two years later, Russian specialists toured the site for the first time to assess the damage done to the partially complete plant by the passage of time and by air raids during the Iran–Iraq War. The final contract between Iran and Russia's Ministry for Atomic Energy (Minatom) was signed on 8 January 1995. Russia's main contractor for the project, Atomstroyexport, would install a V-320 915 MWe VVER-1000 pressurized water reactor into the existing Bushehr I building, with commissioning originally expected in 2001.

Operational Launch and Strategic Milestones

Delivery of nuclear fuel started in 2007. The plant started adding electricity to the national grid in September 2011, and opened in September 2011, attended by Russian Energy Minister Sergei Shmatko and head of the Rosatom Sergey Kiriyenko. The project is considered unique in terms of its technology, the political environment and the challenging physical climate. It is the first civilian nuclear power plant built in the Middle East. Several research reactors had been built earlier in the Middle East: two in Iraq, two in Israel, one in Syria and three in Iran. In August 2013, the head of Russian nuclear regulator Rosatom said that the state company would soon sign documents transferring operational control of the Bushehr nuclear power plant to Iran, and on 23 September 2013, operational control was transferred.

Expansion Plans and Recent Security Challenges

In November 2014, Iran and Russia signed an agreement to build two new nuclear reactors at the Bushehr site, with an option of six more at other sites later. Construction started in March 2017. Iran claimed the area near the plant was attacked four times during the 2026 Iran war as of 5 April 2026, killing at least one plant employee, while the IAEA reported no radiation level rise.

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