Treasury Must Reassess Position and Accept Resumption of Angra 3, with Tariff Reduction
The Brazilian Treasury is now inclined to support the continuation of the Angra 3 nuclear power plant construction, conditioned on a reduction of the projected energy tariffs.
In a shift in position, the Brazilian Treasury is expected to reconsider its opposition to the Angra 3 nuclear power plant project. Previously, it was the only governmental body against the project due to financial concerns surrounding the high costs associated with it. However, two officials from President Lula's government have indicated that the Treasury is now leaning towards accepting the resumption of the project, primarily if there is a concerted effort to lower energy tariffs, which are currently projected to be between R$ 778.86 and R$ 817.27 per megawatt-hour (MWh). This change comes as the Ministry of Mines and Energy (MME) has been advocating for the project's continuation.
The high tariff projections are seen as problematic by the Treasury because they may result in increased electricity bills for consumers in the future. A recent auction conducted by the National Electric Energy Agency (Aneel) indicated that the price for electricity from new thermal power plants, a comparable energy source, was significantly lower at R$ 315 per MWh. This disparity in pricing is vital for the government as it seeks to balance the financial implications of energy production with consumer affordability.
To facilitate a tariff reduction, the government is considering various strategies which may include revising the internal tax rates associated with energy production. This reconsideration of the Angra 3 project highlights the ongoing debates in Brazil regarding energy sources, sustainability, and economic impacts, demonstrating the complexities involved in energy policy-making within the government and its objective to ensure an affordable energy supply for its citizens.