Ceron: Depends on decision to finish Angra 3 nuclear power plant
TL;DR
Brazil faces a mid-2026 decision on completing the Angra 3 nuclear plant, with costs estimated at BRL23.9 billion to finish versus up to BRL26 billion to abandon. The government is split on its viability, balancing low-carbon energy benefits against fiscal strains, amid decades of delays and political disputes.
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Ceron: Depends on decision to finish Angra 3 nuclear power plant
Brazil’s Angra 3 Nuclear Project: A Costly Crossroads
Brazil’s government is poised to decide by mid-2026 whether to proceed with completing the long-delayed Angra 3 nuclear power plant, a project mired in decades of cost overruns, legal disputes, and shifting political priorities. The decision hinges on a critical financial analysis: abandoning the project could cost between BRL22 billion ($4.1 billion) and BRL26 billion, while completing it would require approximately BRL23.9 billion, according to an updated study by the National Bank for Economic and Social Development (BNDES). These figures include costs for contract termination, site demobilization, and repayment of tax incentives as detailed in a Reuters report.
The study, supported by state-controlled operator Eletronuclear, argues that completing Angra 3 remains economically viable compared to alternative energy sources. It estimates a break-even tariff of BRL778.86–BRL817 per MWh, lower than the average cost of most large-scale thermal plants in Brazil according to the study. However, this tariff has risen sharply from BRL653.31 per MWh in 2024, reflecting delays and revised financing assumptions.
The government remains divided. The Mines and Energy Ministry advocates for completion, citing Angra 3’s potential to supply 4.5 million people with low-carbon energy and bolster Brazil’s energy security as the study indicates. Conversely, the Finance Ministry warns of its high costs, which could strain public resources amid broader fiscal constraints according to Reuters analysis. The final decision rests with the National Energy Policy Council (CNPE), which has postponed a verdict amid internal disagreements as reported.
Angra 3, a 1,405 MW pressurized water reactor, has faced repeated halts since construction began in 1984. Resuming work in 2022, Eletronuclear initially aimed for a 2026 operational date, but disputes with local authorities and corruption investigations pushed the timeline to 2033 according to project updates. The project’s protracted delays have also led to repurposing equipment and fuel originally intended for Angra 3 in the existing Angra 2 reactor as noted in reports.
For investors, the outcome carries implications for Brazil’s energy transition and nuclear ambitions. If approved, Angra 3 could reinforce Brazil’s position as one of only four nations with a full uranium fuel cycle for non-military use according to Reuters. However, its uncertain future underscores the risks of large-scale infrastructure projects in politically and economically volatile environments.
(https://world-nuclear-news.org/articles/eletronuclear-says-study-backs-angra-3-completion): Eletronuclear study via World Nuclear News
(https://www.reuters.com/business/energy/brazil-decide-by-mid-year-whether-complete-angra-3-nuclear-project-2026-02-12/): BNDES cost estimates via Reuters
(https://world-nuclear-news.org/articles/eletronuclear-says-study-backs-angra-3-completion): Project history and CNPE dynamics via World Nuclear News
