Brazil plans to boost its nuclear energy potential by collaborating with the private sector
Brazil plans to boost its nuclear energy potential by collaborating with the private sector
By: Fernanda Burle, Barbara Teles and Pedro Villas-Bôas
Recently, the Minister of Mines and Energy Bento Albuquerque, publicly declared the country’s intention to resume and reinforce its Nuclear Energy Program. According to Minister Albuquerque, only Brazil, United States and Russia have substantial reserves of uranium and control over the nuclear energy technology.
Brazil has already two nuclear plants in operation, Angra 1 and Angra 2, both located in Rio de Janeiro. The construction of a third one (Angra 3 plant) is currently 67% completed, but the project has been interrupted since 2015 due to corruption investigations. Now, in order to resume its construction, the newly elected government plans to raise funds by stablishing partnerships with the private sector.
According to the Secretary for the Investment Partnerships Program (PPI), Martha Seillier, the government would be ready to offer an ownership up to 49% of the Angra 3 project. More than that, the National Energy Plan provides the construction of 4 to 8 new power plants in Brazil. Minister Albuquerque has also defended the exploration by the private sector of low-level nuclear energy projects and reactors for water desalination. According to him “in a country like ours, the private sector is fundamental to define our destiny”.
To accomplish this goal, the Brazilian Congress will have to amend the Constitution in order to end the government’s monopoly over the exploration of nuclear energy in the country. In this regard, a Constitutional Amendment Bill (n. 122/07) has already been submitted to the legislative branch and received the approval of the Committee of Constitution, Justice and Citizenship (“CCJC”), responsible for analyzing the constitutionality of the proposition. The bill will now face a special committee that will examine other technical aspects.
However, not all the propositions are following the same direction. Another Constitutional Amendment Bill (n. 41/11) which prohibits the construction of new nuclear energy plants has also been approved by CCJC. The bill will also be subjected to the analysis of a special committee and shall be another focal point that will draw the attention of the private sector.
As can be seen from the above, in a country that has traditionally faced administrations focused on the state management of the nuclear energy, the unprecedent opening of the activity to the private sector may face the opposition of a part of the Congress members. In this sense, it’s essential to closely monitor the subject and to contribute to the discussion through the applicable legal alternatives.
Expert Member Contribution to Brasil-U.S. Business Council