Brazil’s National Energy Policy Council has postponed the decision on Angra 3’s construction amid complications regarding Eletronuclear’s financial status and governance. The project, initially started in 1984, has faced multiple suspensions. Experts advocate for its completion due to national energy reliability needs, yet Eletronuclear struggles with debts and operational challenges.
Brazil’s National Energy Policy Council (CNPE) has delayed the decision on the future construction of Angra 3 at the Angra Nuclear Power Plant (NPP). Currently, Angra NPP operates two reactors: Angra 1, a 640 MWe pressurized water reactor (PWR) connected to the grid in 1985, and Angra 2, a 1,350 MWe PWR operational since 2001.
The construction of Angra 3 started in 1984 but had been halted after two years. The project was revived in 2006, with initial concrete work starting in 2010; however, work stopped again in 2015 due to corruption allegations, leaving the project 65% complete. In 2022, Eletronuclear, the nuclear utility firm, aimed to resume construction, but the local government ordered suspensions again, citing compensation disputes.
In February, Eletronuclear implemented strategies to enhance its management and financial stability to facilitate the completion of Angra 3. Minister of Mines and Energy Alexandre Silveira outlined the nuclear sector’s importance but emphasized that Eletronuclear needed significant restructuring to manage a project of this scale effectively.
In 2019, a feasibility study conducted by the National Bank for Economic & Social Development (BNDES) estimated that abandoning Angra 3 could result in losses exceeding BRL21bn ($3.5bn), while completing the project would require an additional BRL23bn in investment. The plant is designed to be operational by 2031, and past audits indicated that some equipment could be repurposed from Angra 2.
Industry experts recommend advancing the project, noting the growing need for dependable energy sources across Brazil’s energy grid. However, Eletronuclear faces a debt of approximately BRL7 billion with high operational costs, compounded by recent privatization challenges faced by Eletrobras, which owns a share in Eletronuclear.
Silveira warned that not completing Angra 3 could lead to significant financial losses, including BRL14bn and risks to the ongoing operation of Angra 1 and 2 due to insufficient resources for fuel. Additionally, provisions for accounting losses of BRL3.3 billion would need to be acknowledged by state-owned ENBPar.
Recent discussions within CNPE have led to a conciliation agreement between Eletrobras and the Federal Government, paving the way for clearer governance roles post-privatization. This agreement will help mitigate legal uncertainties impacting Angra 3’s future.
Assurances of BRL6.1bn in financing for Angra 3 remain intact despite the agreement that suspends current investment commitments by Eletrobras. There are plans initiated to establish a new approach for the project’s completion, including potentially new mediation formats involving BNDES.
Eletronuclear plans to issue debentures worth BRL2.4bn to extend Angra 1’s operational life, with conditions focusing on reducing operating expenses for conversion into company shares. These moves suggest a strategic emphasis on stabilizing financial standing and progressing efficiently.
Petronoticias noted that Eletrobras will not be required to advance Angra 3 construction unless directed by the federal government. The feasibility assessments will persist, underscoring a commitment to ensuring economic balance in the Angra 3 initiative.
The Brazilian government’s postponement of Angra 3’s construction decision highlights ongoing challenges regarding financial management, governance, and the balance of energy sources. Restructuring Eletronuclear and addressing operational debts are crucial for the project’s future. Continued discussions and agreements aim to align financial strategies while minimizing losses, reinforcing the necessity of Angra 3 for Brazil’s energy portfolio.
Original Source: www.neimagazine.com
