With interest in nuclear power on the rise in countries across Latin America, the IAEA was in Brazil this week to take part in the region's largest nuclear industry event and spearhead discussions on financing newbuild projects, the role of small modular reactors and strengthening global cooperation.
Organized by the Brazilian Association for the Development of Nuclear Activities (ABDAN), the Nuclear Trade and Technology Exchange (NT2E) brought together participants from around the world to discuss opportunities and challenges for the nuclear sector, with a focus on Brazil and the wider region of Latin America.
"A reliable and widespread electricity supply is the lifeblood of any economy. Little else is so closely correlated to economic and social development that makes possible better lives, better health and better livelihoods," IAEA Director General Rafael Mariano Grossi told the conference in recorded opening remarks. "As the populations and economies of Latin America and the Caribbean grow, so will electricity demand. Meeting projected annual growth of more than 2 per cent will require significant investment in infrastructure, especially if we recall that more than 16 million people living in the region still lack access."
New Global Consensus
Interest in nuclear power is growing around the world including in Latin America, amid a new global consensus to accelerate its deployment that emerged at the 2023 United Nations Climate Change Conference (COP28) in Dubai. The IAEA's annual projections for the future of nuclear power have increased for four straight years, with global nuclear capacity now projected to more than double by 2050 in the high case.
Three countries in Latin America-Argentina, Brazil and Mexico-have operated nuclear power plants for decades and are now looking to expand their programmes. The region also boasts seven of the world's nearly 40 newcomer countries including Ecuador, which Director General Grossi visited last week to sign agreements on enhancing cooperation. Still, several challenges need to be addressed if Latin America is to reap the full benefits of nuclear power.
"One of the main barriers for deploying nuclear in the region is the cost of capital," said Julian Gadano, Director of the Nuclear Policy Programme at the Argentine Global Foundation and a former Undersecretary of Nuclear Energy of Argentina. "Small modular reactors (SMRs) are changing the game worldwide, but this particularly presents an opportunity for Latin America. Why? Because new business models are looking into venture capital from developed and robust financial markets, lowering financing costs. This is crucial to unleash nuclear power in developing countries, particularly in Latin America," she added.
SMRs and Financing
The IAEA hosted a workshop on SMRs during the NT2E fair that covered the state of the technology, regulatory challenges and market opportunities for SMRs. The Agency also organized a panel on financing nuclear projects to discuss the financial, policy and collaborative strategies needed to scale up nuclear energy capacity. The discussion, aimed at engaging policy makers and key stakeholders present at the NT2E, explored challenges and opportunities in financing nuclear projects as well as the links between nuclear energy, security of supply, economic growth and climate goals.
"The NT2E is characterized as a meeting space for the entire nuclear sector, bringing together various associations," said Celso Cunha, President of ABDAN. "In this way, the IAEA has been helping us consolidate a nuclear hub for Latin America, with the presence of several delegations and the participation of different segments."
The first reactor of Brazil's two-unit Angra Nuclear Power Plant recently received a 20-year life extension, and construction on a third unit is currently underway. Electricity demand is projected to grow by about 3.5 per cent each year, highlighting the need to build out more clean energy capacity.
A panel on SMR projects addressed topics including public-private partnerships, feasibility studies and implementation challenges. The third edition of the IAEA's SMR School is set to be held in Buenos Aires from 25 to 29 August with participants from Argentina, Bolivia, Brazil, Colombia, the Dominican Republic, El Salvador, Guatemala, Jamaica, Paraguay and Peru.
G20: From Brazil to South Africa
The IAEA also joined a session focused on global cooperation in climate change mitigation, presenting the Agency's work and increasing presence by informing on the role that nuclear energy has in the clean energy transitions at COP and the G20. The IAEA was first invited to present to the G20 on nuclear power issues during the Brazilian Presidency last year, providing key contributions to its Energy Transitions Working Group, including a report on how to accelerate investment in clean energy transitions. IAEA participation in the G20 has carried over to this year's South African Presidency, with the Agency set to produce publications on prospects for nuclear power in Africa and the coal-to-nuclear transition and join the G20 Ministerial Meeting on Energy later this year.
"From Asia to Latin America, from Europe to North America, this new energy realism-this need for clean firm power to enhance energy security and drive economic development-is clearer by the day," said Mikhail Chudakov, Deputy Director General and Head of the IAEA's Department of Nuclear Energy. "Nuclear energy offers tremendous promise -but it will only deliver if we match that promise with political will and social commitment."
