Brazil’s CNPE has postponed the decision on Angra 3’s construction due to governance and financial concerns. Eletronuclear is implementing reforms, but significant debts and costs hinder progress. The project is critical for energy reliability, despite uncertainties surrounding its completion and financial backing.
Brazil’s National Energy Policy Council (CNPE) has deferred any decisions regarding the resumption of construction for Unit 3 at the Angra Nuclear Power Plant (NPP). The Angra NPP currently operates two pressurized water reactors, with Angra 1 beginning operations in 1985 and Angra 2 in 2001. Angra 3, featuring a Siemens/KWU reactor, initiated construction in 1984 but faced a suspension after two years due to various challenges, including corruption allegations.
After a renewed effort in 2006, construction of Angra 3 saw limited progress until it was halted again in 2015, leaving the project 65% complete. Although efforts resumed in 2022, further complications arose causing the city government of Angra dos Reis to order work to cease over compensation and other issues. Eletronuclear, the subsidiary responsible for the nuclear facility, has enacted measures aimed at restructuring its management and improving financial sustainability, essential for advancing Angra 3.
Minister of Mines and Energy Alexandre Silveira emphasized the nuclear sector’s significance for Brazil but cautioned that Eletronuclear must be fully restructured before proceeding with Angra 3’s completion. Inquiries into the project’s viability by the National Bank for Economic and Social Development (BNDES) revealed a potential loss of BRL21 billion if abandoned, compared to an estimated BRL23 billion to complete it.
With total expenditures near BRL12 billion, the project is aiming for commercial operation by 2031. Industry experts argue that the completion of Angra 3 is strategically essential given the need for reliable energy amid the increasing reliance on renewable sources. Nonetheless, Eletronuclear is facing considerable challenges, beginning 2025 with a substantial debt and an ongoing operating deficit.
Silveira cautioned that failure to complete Angra 3 could lead to an immediate expense of BRL14 billion, impacting existing contracts and resources required for fueling Angra 1 and 2. ENBPar, established to maintain government oversight of nuclear operations, would also incur significant accounting losses should the project not proceed. Recent dialogues culminated in a conciliatory agreement between Eletrobras and the Federal Government regarding governance post-privatization, impacting future decisions on Angra 3.
The agreement aims to bolster the Union’s representation within Eletrobras’ board and adjust financial commitments related to the Angra 3 project. Notably, guarantees concerning BRL6.1 billion in financing for Angra 3 remain intact but will be reviewed pending further deliberation by competent authorities. New mediation processes are anticipated to facilitate a fresh financial model for completing the project, while Eletronuclear has plans to issue debentures to finance the extension of Angra 1’s operational life.
In summary, Brazil’s CNPE has delayed decisions on Angra 3’s construction, highlighting issues of governance and financial viability. Eletronuclear has announced strategic plans aimed at enhancing its management practices while facing significant debt and operational costs. The project’s completion remains essential amidst demands for reliable energy sources, yet uncertainty persists as the government and Eletrobras navigate critical negotiations affecting its future.
Original Source: www.neimagazine.com
