Economy & Energy
Year IX -No 64:
October - November 2007
Text for Discussion:
Comparative Analysis between the Costs Corresponding to the Thermoelectric Plants that won the New Energy Auction of 10/16/07 and the Projected Costs for the Angra 3 Nuclear Plant
Sérgio Gonçalves Mathias and
The objective of this article is to compare the costs for the Electrical System corresponding to the thermal power plants that have won the auction of new energy (A - 5) held in 10/16/07 and those of the Angra 3 nuclear power plant.
The costs are those associated with the production and the acquisition of electric energy from thermal power plants that were involved in the new energy auction carried out by the Electric Energy Commercialization Chamber – CCEE, authorized by the National Electric Energy Agency – ANEEL to satisfy the electric energy demand foreseen by the distribution companies that are part of the National Interconnected System – SIN.
The commercialization of electric energy from thermal plants is carried out by contracts of electric energy availability in which the costs associated with hydrological risks that determine the dispatch level of the power plants are borne by the buying agents (the distribution companies that are part of SIN). Therefore, the costs of fuel purchase and costs due to eventual financial exposures in the CCEE short-term market are borne by the distribution companies and charged to the final consumers.
For the present comparison the costs considered were those corresponding to the annual fixed revenue (whose value is the price offered by the entrepreneur during the new energy auction) and the variable cost of operation and maintenance (in which the fuel cost is included).
The eventual costs corresponding to financial exposures in the CCEE short-term market were not considered in the present comparison due to the difficulty of anticipating the value of Liquidation of Differences Price – PLD and the fact that this Price is equally applicable to supply deviations of all thermal power plants.
For the Electric System the
commercialization and production cost of electric energy from thermal
power plants by energy unit
CT = (RF + EG x CVU) / EC (1), where:
CT = Total cost for contracted energy(R$ / MWh)
RF = Annual fixed revenue (R$ / year)
CVU = Variable Unitary Cost (R$ / MWh)
EC = Tendered energy (MWh / year)
EG = Generated energy (MWh / year)
According to the rules applicable to the electric energy auctions, the fuel cost necessary for plant generating at its declared inflexibility level, whenever applicable, should be included in the annual fixed revenue by the enterprise participating in the auction and the variable generation cost is applicable only to the variable generation portion above the declared inflexibility level.
ELETRONUCLEAR has estimated the following data regarding the commercialization of energy from Angra 3:
Nominal Power: 1435 MW (considered a power upgrade relative to the original 1.350 MW power of the project)
Internal Consumption: 75 MW
Availability reduction due to outages for fuel recharge and maintenance: 160 MW average
Contracted energy: 1200 MW average
Projected tariff: 140 R$ / MWh
Fuel cost: 22 R$ / MWh (already included in the tariff)
Annual revenue corresponding to the contracted energy: R$ 1,471,680, 000.00 / year
It should be observed that the Angra 3 fuel cost is already considered in the tariff and therefore it is not an additional cost for the Electrical System whereas it is the case of energy availability contracts of new energy auctions applicable to thermal power plants.
Table I presents the results of the energy auction (A - 5) held in 10/16/07.
The Variable Generation Cost of the thermal power plants that participated in the auction were not made public by EPE. For the present analysis the average values considered were those of the NEWAVE program used in the EPE 2007 Expansion Decennial Plan for each fuel (gas, oil and coal) of the plants that won the auction. These values are shown in Table II.
Table II – Average values of fuel costs of thermal power plants that won the (A-5) auction held in 10/16/07
Source: EPE 2007-2016 Expansion Decennial Plan
Figure I shows:
a) the values corresponding to the costs of thermal power plants that won the auction of new energy held in 10/16/07 as a function of the “Utilization Factor” (Fu) defined here as the ratio between the generated energy (EG) and the contracted energy (EC) for each plant, that is:
Fu = EG / EC , where EG and EC are indicated in formula (1) presented in item 2;
b) the values corresponding to the Angra 3 costs, also as a function of the Utilization Factor.
It should be observed that the Angra 3 cost is independent on the fuel cost because this cost is included in the foreseen tariff for Angra 3 as already explained in the previous item 3. Therefore the curve corresponding to the Angra 3 cost is represented by a segment of a straight line parallel to the horizontal axis.
Comparison between the Angra 3 consts and the costs corresponding to the thermoeledtric plants that won the new energy auction of 10/16/2007, as a function to the Utilization Factor
(*) The fuel cost for Angra 3 is included in its tariff
6 - Conclusion:
Figure I of item 5 above indicates that the Angra 3 costs are lower than those of the thermal power plants that won the new energy auction held in 10/16/07, for Utilization Factors above the values indicated in what follows:
a) 19% for oil plants;
b) 53% for coal plants; and
c) 65% for gas plants.
 ELETRONUCLEAR’s Commercialization Advisory Group
Graphic Edition/Edição Gráfica:
Friday, 25 April 2008.