High fuel prices bring nuclear generation back on table

The current moment of high fuel prices, due to the geopolitical crisis in Ukraine, and the transition to low-carbon energies generate debates likely to include the role of nuclear power generation in Brazil, said Thiago Barral, head of the Energy Research Company (EPE). “The moment we are living, with rising fuel prices, brings to the fore the reflection on energy security,” said Mr. Barral on Tuesday at an online event held by the Brazilian Center for International Relations (Cebri).

A new nuclear power plant in Brazil is foreseen in the EPE’s Ten Year Energy Plan (PDE) 2031. Mr. Barral explained that the plant was included in the plan to secure supply. The nuclear source does not emit carbon and is dispatchable, that is, it can generate at any time, unlike renewable sources such as wind and solar, which depend on weather conditions.

“We brought nuclear back to the center of the discussion from the perspective of reducing the regret cost in the context of energy transition and the need to value energy security. Brazil cannot give up this technology. There are ongoing actions to ensure that nuclear participation is made feasible,” he said.

According to Mr. Barral, EPE has analyzed the technology of small modular reactors, which are projects with an installed capacity of up to 300 megawatts, smaller than traditional nuclear plants and tend to have lower costs.

“EPE has been paying attention to small modular reactors to understand the role that nuclear power can play in Brazil. We are at the stage of understanding in greater depth how this new technology brings opportunities for nuclear energy to be inserted into the power generation mix from now on,” he said.

Today Brazil has 1.9 gigawatts of installed capacity for nuclear generation from the Angra 1 and 2 plants, which represents 2.5% of the power generation mix. Angra 3 is under construction, scheduled to start operating in 2026, with a 1.4 GW capacity. The projects are operated by Eletronuclear, a subsidiary of Eletrobras.

Eletronuclear’s CEO Leonam Guimarães pointed out in the event that the company’s studies indicate that, despite the high initial investments for these projects, Angra 3 tends to reduce the total cost of operating the electrical system, as it reduces the use of other more expensive plants.

He recalled, however, that nuclear generation is difficult in an environment of high interest rates. “The initial cost is very high. This takes away the economic and financial competitiveness of the project. The balance of the cost of energy security has to be considered,” he said.

Private-sector companies are interested in investing in the source in Brazil, according to PSR consulting partner Celso Dall’orto. “We need to solve the regulatory and legal situation for the private sector to take part in this source,” he said.

Source: Valor International

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