Cost to complete Angra 3 is estimated at R$23 billion

The cost of completing Brazil's third nuclear power plant, Angra 3, is estimated at R$23 billion, according to a study by BNDES (National Bank for Economic and Social Development) delivered to Electronuclear (ENBPar and Eletrobras) last Tuesday (3). On the other hand, the cost of abandoning the works, in which already R$ 12 billion were invested, it will be R$ 21 billion. 

The study will be sent to the MME (Ministry of Mines and Energy) and to the shareholders of Electronuclear.The information will then be forwarded to assessment by CNPE (National Energy Policy Council). 

A construction of Angra 3 began in 1984. However, construction was halted in 1986 due to financial issues and lack of demand for energy at the time.

After years of paralysis, the works were resumed in 2010, but faced new obstacles, such as financing problems and environmental issues, leading to a new halt in 2015. Since then, the project has faced several challenges to resume construction. At the moment, the overall physical progress of the work is 66%.  

A Brazil's third nuclear power plant will have a capacity of 1.405 MW, capable of producing around 12 million MWh per year, equivalent to 70% of the consumption of the state of Rio de Janeiro. 

According to BNDES, the proposed tariff for economic viability of the project is R$ 653,31/MWh, a value similar to the reference tariff defined by the CNPE in 2018 (R$480,00, at the time, which currently corresponds to R$639,00). The value would be lower than the costs of several thermal plants in the Southeast subsystem. 

“This is a crucial step for the continuity of the work and determination of the tariff for the sale of energy that will be generated by the plant. We are confident that the work will soon get underway and that the nuclear sector will once again be thriving in Brazil,” says Eletronuclear president Raul Lycurgo.

The study indicated that approximately R$1,4 billion will be reimbursed to Angra 3 for Angra 2, due to the use of equipment and nuclear fuel originally acquired for the third plant. According to Eletronuclear, the project will also represent the creation of approximately 7 direct jobs at the peak of the construction, in addition to a much larger number of indirect jobs.

Costs to give up Angra 3

• R$9,2 billion to pay off existing financing with Caixa and BNDES, including fines and penalties resulting from non-completion of the work;
• R$2,5 billion for the termination of signed contracts and their respective penalties;
• R$1,1 billion for the return of tax incentives received on the import and acquisition of equipment;
• R$940 million in demobilization of works already carried out;
• R$7,3 billion opportunity cost of invested capital.

These amounts would have to be paid off in the short term, additionally resulting in the definitive loss of almost R$12 billion already invested.

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