COMMERCIALIZATION OF THE ENERGY FROM THE BRAZILIAN NUCLEAR POWER PLANTS

Sergio G. MathiasLAS/ANS SymposiumRio de Janeiro, Brazil

June 13-16, 2005

Angra 3

Angra 2 Angra 1

Installed Capacity(82,109 MW)

1.6%2.3%

10.2% 6.0%

79.9%

Gross Generation(45,208 MWavg)

91.4%

1.6%3.0%

3.8%0.2%

BRAZILIAN ELECTRIC SYSTEM - YEAR 2004

0 .0 %0.0 %0.0 %0.0 %0.0 %Hydroelectric Nuclear Coal Gas Oil

Typical share of Angra 1 and Angra 2 in previous years : 4%

Production was lower in 2004 mainly because of two forced outages of Angra 2: failure of a Containment Isolation Valve (26 days) and malfunction of Electric Generator (32 days)

Installed Capacity(82,109 MW)

1.6%2.3%

10.2% 6.0%

79.9%

Gross Generation(45,208 MWavg)

91.4%

1.6%3.0%

3.8%0.2%

BRAZILIAN ELECTRIC SYSTEM - YEAR 2004

0 .0 %0.0 %0.0 %0.0 %0.0 %Hydroelectric Nuclear Coal Gas Oil

Typical share of Angra 1 and Angra 2 in previous years : 4%

Production was lower in 2004 mainly because of two forced outages of Angra 2: failure of a Containment Isolation Valve (26 days) and malfunction of Electric Generator (32 days)

SHAKESPEAREAN DILEMMA IN THE OPERATION OFTHE BRAZILIAN ELECTRIC SYSTEM

To dispatch or not to dispatch the thermal plants, that is the question!

Decision

Futurewater

inflowsOperational

consequences

WetOK

Right decision !

Using the reservoirs

Not using the reservoirs

(Thermal plants can supply only 20% of load demand)Dry Risk of deficit

OKRight decision !

Dry

(Waste of fossil fuel)WetWater spilling

ENERGY

BRAZILIAN ELECTRIC SYSTEM

GENERATORS

CONSUMERS

G2G1

SpotMarket

DnD2D1

$

Financialcontracts

.............

.................

DISTRIBUTORS

ENERGY

Accounting ofcontracted / supplieddifferences

Gn

LoadDispatcher

COMMERCIALIZATION OF THE ENERGY OF ANGRA 1 AND ANGRA 2

Estimated values for 2005: = - 330 MWavgSpot price = 8 US$/MWhComposed average tariff = 45 US$/MWh

ELETRONUCLEAR

FURNAS

+ x spot price(limited to + x tariff)

- x spot price(limited to - x tariff)

Contracted energy: 1,475 MWavg

Tariff: 37 US$/MWh(Charged regardless of actual supply)

CONTRACTING OF ELECTRIC ENERGY

Freely negotiated contracts

Generators

Freely negotiatedprices

“Free” consumers(consumption > 3 MW)

Regulated contracts

Generators

Prices resultingfrom auctions

Distributors

Regulated tariffs

“Captive” consumers

ELETRONUCLEAR

Regulated tariff

FURNAS

Angra 1 Angra 2

“Reference”Offer

Total Demand from the

Distributors

2nd round 3rd round 4th round1st round

Prices Amounts of energy offered by the Generators

AUCTIONS - FIRST PHASE-System specifies prices-Generators specify amounts of energy they want to sell

C B A

APA=

Amounts of energy offered by the Generators

Contracted amounts

BPB

CPC

P1

P1 = Final price from the first phase

AUCTIONS - SECOND PHASE

Prices

Total demand from the Distributors

Generators specify amounts of energy they want to sell and prices (limited to prices resulting from the first phase)

THANK YOU !!!

Sergio Mathias

ELETRONUCLEAR

Rio de Janeiro - Brazil