Summary of the Article: Angra 3 Nuclear Project in Crisis
This article details the financial struggles surrounding the unfinished Angra 3 nuclear power plant in Brazil. Here’s a breakdown of the key points:
* Project History & Debt: Angra 3 began in the 1980s, funded by Eletrobras. Debt was incurred in 2011, intended to be repaid by the plant’s future revenue. Construction halted in 2015 due to Operation Lava Jato (a corruption scandal), but debt payments continued from 2017.
* Current Financial Situation: The project is 67% complete, having already cost R$12 billion. However, completing it is now estimated at R$23 billion, while abandoning it would cost R$21 billion. Eletronuclear is heavily indebted, with R$800 million in interest payments alone this year (rising to R$1 billion with maintenance costs). Revenue from Angra 1 & 2 is being used to service the Angra 3 debt.
* Government Hesitation & Debt Waivers: Initial hope for resumption under the Lula management led to a six-month debt payment waiver, but that has expired and banks are unwilling to offer further extensions without a clear project plan.
* Lack of Support Post-Privatization: After eletrobras’ privatization, the financial support previously provided by Eletrobras (R$5 billion from 2015-2021) disappeared. enbpar, the successor holding company, couldn’t fill the gap.
* Revenue/Expense Mismatch & Regulatory Hurdles: Eletronuclear struggles to balance revenue and expenses.Attempts to raise tariffs to cover the shortfall have been blocked by Aneel (the energy regulatory agency), which is reluctant to pass the costs onto consumers. Aneel recognized R$1.1 billion in expenses in 2022, but the actual expenses were R$1.6 billion.
* Future Uncertainty: the government is expected to decide the fate of Angra 3 by December, pending further studies from BNDES (the progress bank) due at the end of October.
In essence, the article paints a picture of a stalled nuclear project burdened by debt, lacking financial support, and facing an uncertain future. The project’s viability is being questioned, and the government is weighing the costs of completion versus abandonment.