June 24, 2021

Who Uses and How Much Does Nuclear Energy Cost in Brazil?

Brazil has two nuclear power plants in operation, Angra 1 and Angra 2, which together generated 16.28 TWh in 2019. As a result, nuclear electricity generation in Brazil accounted for 2.5% of the country’s nuclear energy consumption that year, according to the 2020 National Energy Balance.

The nuclear energy tariff in Brazil, set by the National Electricity Agency (ANEEL), is R$ 249.64 per megawatt-hour (MWh). For comparison, the current average electricity generation costs of hydroelectric power is R$ 176.60/MWh. This difference highlights the relative nuclear power pricing in the broader context of Brazil’s nuclear power market.

Want to learn more about this topic? Keep reading!

History of Nuclear Energy in Brazil

The nuclear power industry in Brazil began with the Angra 1 plant, which started commercial operations in 1985, followed by Angra 2 in 2001. There is also a third plant under construction, Angra 3, whose construction began 36 years ago but has yet to be completed.

The city of Angra dos Reis was chosen as the site for Brazil’s nuclear park because it is located between Rio de Janeiro and São Paulo, making energy transportation to these major urban centers easier. Additionally, the proximity to the sea was an important consideration, as nuclear energy production requires large quantities of water for cooling. This strategic location plays a key role in Brazil’s growing nuclear power market.

How Is the Nuclear Energy Produced Distributed?

Since January 1, 2013, Law 12.111 (12/09/2009) has mandated that nuclear energy production from the Angra 1 and Angra 2 plants be traded within the National Interconnected System (SIN) under a quota system. This system determines the percentage of energy from the plants allocated to each utility.

ANEEL annually defines the proportions of these quotas and the annual energy volumes to be distributed. Each year, the difference between the energy actually generated by the plants and the total guaranteed capacity, excluding the nuclear plant’s internal consumption and transmission losses, is also calculated.

If the result is positive, Eletronuclear receives 50% of the difference between the energy value and the annual average Settlement Price for Differences (PLD), calculated by the Electric Energy Trading Chamber (CCEE). However, if the result is negative, Eletronuclear must compensate the utilities for the difference between the nuclear energy tariffs and the annual average PLD.

This system illustrates the complexity of pricing and regulation in the nuclear power market, where nuclear energy costs are influenced by both government policy and the operational performance of nuclear power plants.

Did you enjoy learning more about nuclear energy in Brazil? Be sure to also check out our article on the advantages and disadvantages of alternative energy sources.