The Brazilian National Energy Policy Council has deferred its decision on Angra 3’s construction resumption, citing the need for Eletronuclear’s restructuring. The project has faced numerous delays due to corruption allegations, the financial strain on Eletronuclear, and recent government interventions. A feasibility study from BNDES outlines significant potential costs associated with project abandonment versus completion.
Brazil’s National Energy Policy Council (CNPE), part of the Ministry of Mines and Energy (MME), has postponed any decision regarding the resumption of construction on Angra 3 at the Angra Nuclear Power Plant (NPP). Currently, the Angra NPP operates two pressurized water reactors: Angra 1, with a capacity of 640 MWe, which has been operational since 1985, and Angra 2, a 1,350 MWe unit, which started in 2001.
Construction of Angra 3, which utilizes a Siemens/KWU pressurized water reactor, commenced in 1984 but was halted after two years. Although construction resumed in 2006, progress was again impeded in 2015 due to corruption allegations linked to government contracts, leaving the project 65% complete. In 2022, Eletronuclear ordered a restart, but work was once more suspended in April 2023 due to payment-related issues raised by the local government.
In February, Eletronuclear, a subsidiary of Eletrobras, implemented strategic measures intended to enhance its management and financial sustainability. These initiatives aim to improve the governance model and facilitate the continuity of Angra 3’s construction. Post-CNPE meeting, Minister of Mines and Energy Alexandre Silveira emphasized the need for a holistic approach to Angra 3, asserting, “we have to look at the issue of Angra 3 holistically.”
Minister Silveira indicated his support for the project but underscored the necessity for Eletronuclear to be restructured to ensure effective management. Concerns exist regarding the company’s capability to oversee a project of this magnitude effectively. In 2019, Eletronuclear commissioned the National Bank for Economic & Social Development (BNDES) to assess the technical, economic, and legal feasibility of Angra 3, revealing that abandoning the project could cost BRL 21 billion ($3.5 billion).
In summary, Brazil’s delay in decision-making on the Angra 3 project highlights the complexities surrounding its completion amidst financial and management challenges. The government acknowledges the strategic significance of the nuclear sector in ensuring energy reliability, especially with increasing reliance on intermittent energy sources. Adequate restructuring of Eletronuclear is critical for the future of Angra 3, as various agreements regarding governance and financing evolve to support the project’s potential resumption.
Original Source: www.neimagazine.com
