A numerical study is performed to investigate heat transfer and fluid flow in the enhance and fully developed regions of an annulus, consisting of a rotating, insulated inner cylinder and a stationary, heated outer cylinder. Several different kappa-epsilon turbulence models are employed to determine the turbulent kinetic energy, its dissipation rate, and the heat transfer performance. The governing boundary layer equations are discretized by means of a control volume finite difference technique and numerically solved using the marching procedure. In the entrance region the axial rotation of the inner cylinder induces a thermal development and causes as increase in both the Nusselt number and the turbulent kinetic energy in the inner cylinder wall region. In the fully developed region, an increase in the Taylor number causes an amplification of the turbulent kinetic energy over the whole cross section, resulting in a substantial enhancement in the Nusselt number. These transport phenomena are also affected by the radius ratio and Reynolds number.