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Latin America mulls nuclear power revival

  • : Electricity
  • 24/11/01

Nuclear power is gaining traction in Latin America as countries see small modular reactors (SMRs) as options for remote regions that are not connected to power grids.

"The advent of SMRs are behind Latin America's new interest in nuclear energy, because they do not need to be large and do not require large investments," said Modesto Montoya, a nuclear physicist and former president of the Peruvian Institute for Nuclear Energy.

Nuclear power is not a prevalent source of electricity in Latin America, producing around 2pc of the region's power consumption. There are seven nuclear power plants with a total capacity of 5.07GW in operation in the region, located in Argentina, Mexico and Brazil. Argentina has a 32MW SMR plant under construction.

But the role of nuclear could increase in the region. Argentina, Brazil and Mexico are providing technical advice to countries that are considering including the technology in their power systems.

Earlier this month, El Salvador approved a nuclear energy law and signed a memorandum with the Argentinian government for scientific and technology cooperation for nuclear power.

Daniel Alvarez, director of the Agency for Implementation of the Nuclear Energy Program in El Salvador, told Argus that the country was "following the book to develop nuclear power. We want to convert El Salvador into a nuclear country."

The country needs to replace fossil fuels as half of the country's power capacity is fueled by bunker fuel. It has 204MW of geothermal capacity installed and, while solar energy is possible, the country's size limits the amount of physical space to add large solar plants.

The government's plan is to have a research reactor and 400 people trained to manage a nuclear plant within seven years. The next step would be the construction of SMR. "We have to include alternatives for power generation and SMRs are a very good option. We want to include them in our transition to 2050,"Alvarez said.

SMRs are also seen as a solution to the energy problem in the northern jungle city of Iquitos, in Peru, energy and mines minister Romulo Mucho said. It is one of the world's largest cities that is not accessible by road and not connected to the national grid, relying primarily on fuel oil for power generation. Peru has had experience with nuclear technology since 1988, when it opened the nuclear research facility, RASCO.

Neighboring Bolivia has been working on a small nuclear program since the previous decade with Russia's Rosatom. It has a center for nuclear medicine and is finishing a small research reactor.

Ronald Veizaga, deputy minister of electricity and renewable energies, said Bolivia began the program to improve medical treatment for cancer, but has changed gears. "Critics claim SMRs are expensive, but it is more expensive to have blackouts affecting your population and industry," he said.

Traditional nuclear

Paraguay is considering a more ambitious path, looking at a traditional nuclear plant.

"We need to make political decisions if we want to explore a SMR or a large-scale plant to generate 1GW or more," said Jorge Molina, executive secretary of Paraguay's Radiology and Nuclear Authority.

Paraguay could work with Argentina and Brazil to create a regional platform. "Our idea is part of regional integration. Our neighbors are already helping us develop our regulations," he said.

But the construction of nuclear plants comes with challenges including high costs, time, labor and materials. Brazil began work on the 1.4GW Angra 3 nuclear plant in 1984 but works have been halted and resumed several times since then. The plant is roughly 67pc complete and has been in limbo since 2015. The country's Bndes development bank recently concluded that abandoning the construction of the project would be less costly than completing it.

Countries with installed nuclear capacity in Latin AmericaGW
CountryCapacity
Argentina1.64
Brazil1.88
Mexico1.55

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25/03/18

Groups to sue Alliant over Iowa coal ash discharge

Groups to sue Alliant over Iowa coal ash discharge

New York, 18 March (Argus) — Three environmental groups intend to sue Alliant Energy subsidiary Interstate Power and Light, alleging that groundwater discharges from the Ottumwa coal plant's coal ash impoundment in Iowa violate the Clean Water Act. The groups — the Iowa Environmental Council, Sierra Club, and Environmental Law & Policy Center — filed a formal notice to sue the utility on 12 March, initiating a 60-day period for the company to respond and comply with the Clean Water Act. The environmental groups claim Ottumwa has continued to release groundwater with arsenic and other toxic pollutants into the Des Moines River through a drain under the plant's lined coal ash pond despite being told by Iowa regulators in 2023 that such releases were not allowed under the plant's stormwater permit. The utility also has not applied for a new permit since the Iowa Department of Natural Resources mentioned the issue, the groups claim. "We want the unpermitted pollution to stop," said Environmental Law & Policy Center senior attorney Josh Mandelbaum. "We will evaluate any response by the utility, but if there continues to be unpermitted pollution, we intend to act." Alliant said that it is abiding by all regulated and required groundwater monitoring processes. The company "proactively" reached out to the Iowa Department of Natural Resources about the permit and has been "actively communicating" with the department while "systematically working" toward a solution for the groundwater discharge. "The system under the landfill is engineered so the groundwater does not come into contact with the contents of the landfill," the coal plant operator said in its statement. Still, environmental groups insist that "a solution has not been implemented and Alliant continues its unpermitted discharge". The Ottumwa coal plant received 1.27mn short tons (1.15mn metric tonnes) of coal from four Wyoming mines in 2024, according to the most recent US Energy Information Administration data. By Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway cold on EU VAT power sales harmony


25/03/17
25/03/17

Norway cold on EU VAT power sales harmony

London, 17 March (Argus) — Norway will not harmonise its value-added tax (VAT) legislation for cross-border power sales with the EU despite pressure from market operator Epex Spot, with the country's finance ministry claiming that its current rules are "satisfactory", it told Argus . Norway's finance ministry has not "found any reasons" to consider better integrating its VAT procedures on cross-border power sales, the ministry said, adding that EU rules are not "binding" and that, as such, "there is no ongoing work" to align the Nordic country with the broader European market. The decision follows a series of letters sent by Epex Spot that highlighted its significant objections to the existing VAT arrangements. The market operator argues that the system allows for potential double taxation on some sales while others can go completely untaxed. They added that this increases the risk of VAT tax fraud in Norway, with the system "leav[ing] the door open to well-known tax fraud methods", Epex Spot's public and regulatory affairs director, Davide Orifici, told Argus last year . In response to the ministry's statement, Epex Spot told Argus that while the legislation "is not binding for Norway", it hoped that Norway would align with EU rules "on a voluntary basis" to "secure the Norwegian power market against VAT fraud". It added that Norway's "tax authorities themselves" had confirmed to the media that Norway was, in effect, "keeping the doors open to fraud". Epex conducted discussions with Norway's tax authorities late last year, which were characterised as "good", but the finance ministry appears to be unmoved on EU VAT harmonisation. This is the latest flashpoint in a lingering dispute within Norwegian politics over whether it is best to pull back or move closer to the EU power market. Norway's coalition government fell apart earlier this year as the country's centre party left the ruling alliance over lead-partner Labour Party's willingness to align Norway more closely with the EU and adopt the bloc's fourth energy package. This leaves the Labour Party to govern as a minority government until parliamentary elections take place on 8 September. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Lower Rio Tinto Al output cuts New Zealand power demand


25/03/13
25/03/13

Lower Rio Tinto Al output cuts New Zealand power demand

Sydney, 13 March (Argus) — New Zealand's industrial electricity demand fell on the year in October-December 2024, after Rio Tinto cut production at its Tiwai Point aluminium smelter in the previous quarter. The country's industrial electricity demand was down by 9pc compared with a year earlier, data from the Ministry of Business, Innovation, and Employment show ( see table ). Rio Tinto cut production at Tiwai Point in late-July 2024, after New Zealand utility Meridian Energy requested that it reduce its energy use by 205 MW. Many of the plant's potlines remained off line until late-September 2024, when Rio Tinto began restarting production at a reduced level. The Tiwai Point Aluminium Smelter is New Zealand's largest industrial energy user, consuming 572MW of power, often accounting for 12-13pc of national electricity demand, according to New Zealand's Electricity Authority. But it only accounted for about 10pc of total demand in October-December because of its lower production level. Rio Tinto's decreased power use and the country's rising geothermal generation in October-December pushed New Zealand's coal- and gas-fired generation to their lowest levels since late-2022. Utilities produced 2.1PJ from coal- and gas-fired generation, down by 73pc on the quarter and by 42pc on the year ( see table ). Coal- and gas-fired plants accounted for just 6pc of total generation in the fourth quarter of 2024, down from 19pc in July-September and 10pc a year earlier. Meanwhile, New Zealand's renewable power generation grew in importance over October-December, even as the government continued taking steps to promote coal- and gas-fired generation. The share of renewable electricity rose to 94.3pc, the highest level since December 2022 and the fourth highest on record. The New Zealand government is eager to promote oil, gas and petroleum generation, resources minister Shane Jones told Argus in December 2024. New Zealand's government has rolled back a ban on offshore gas exploration and has been fast-tracking coal developments since taking office in 2023. The country's largest utility, Meridian Energy, also warned of a structural gas shortage in late February, calling for new gas exploration. By Avinash Govind New Zealand Energy Quarterly Oct-Dec '24 Jul-Sep '24 Oct-Dec '23 q-o-q ± % y-o-y ± % Electricity Consumption (PJ) Industrial 11.0 10.1 12.1 8.7 -9.0 Total 33.7 38.1 35.2 -11.4 -4.3 Electricity Production (PJ) Coal 0.5 3.2 1.3 -84.9 -64.2 Gas 1.7 4.6 2.4 -63.8 -29.8 Geothermal 7.6 8.5 7.1 -10.9 6.6 Total 37.7 41.5 38.2 -9.3 -1.4 Source: Ministry of Business, Innovation, and Employment (MBIE) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Italian Bess necessary to reduce gas burn: Industry


25/03/11
25/03/11

Italian Bess necessary to reduce gas burn: Industry

London, 11 March (Argus) — As renewables become more prevalent in the Italian power mix, market participants support the buildout of battery energy storage systems (Bess) to replace gas-fired generation as a source of flexibility, Argus heard on the sidelines of the KEY25 Energy Transition Expo in Rimini last week. Italy has some of the highest electricity prices in Europe owing to the country's heavy reliance on gas-fired generation, with the single national price (Pun) averaging €107.75/MWh over 2024. While there has been a decrease in gas burn and an increase in renewables output since 2022, gas-fired generation still accounted for slightly over 40pc of the power mix on average last year, compared with combined solar and wind generation at 21pc. The Italian government has set ambitious renewable targets under the country's national energy and climate plan, aiming to reach 131.3GW — including solar, wind and hydro capacity — by 2030 from 77GW in January under Italy's climate and energy plan. There is general agreement among market participants that reducing gas burn in favour of renewable energy sources will lower electricity prices, but some gas-fired capacity may never be removed from the Italian power mix without having another technology that can provide the same flexibility at scale. Residual demand in Italy is falling, but thermal output remains essential to cover demand peaks during critical summer and winter periods, according to Italian transmission system operator (TSO) Terna's latest system adequacy report . But as renewables cover an increasing share of electricity demand — estimated to reach 335TWh in 2028 — thermal plants will become less economically viable and are likely to be decommissioned unless they are kept operating through ancillary services. "The more renewable generation we have, the less gas-fired plants will have to cover residual electricity demand. Only the most efficient — hence the cheapest — gas-fired plants will be accepted, and the others will be decommissioned," a power trader told Argus . But turning on a gas-fired plant from cold and with a stop-start operation would lead to exaggerated costs and higher maintenance prices. "Morning and evening prices could be used to cover the maintenance of the plant, and the average price would risk being the same but with very marked price differences," the head of power origination of an Italian utility told Argus . "This would lead to investing a lot in batteries that could exploit the spreads and lower them a bit," he added. Market participants attending the conference widely agreed that growing renewable capacity means there is a need to focus on the development of Bess, especially those with 6-8 hours duration to enable time shifting. Solar photovoltaic capacity is expected to grow by 6-8 GW/yr to 2030, according to industry body Italia Solare president Paolo Viscontini. The Italian energy ministry has recently accepted Terna's view that the country will need an additional 10GWh of Bess capacity by 2028 to avoid the risk of the grid becoming congested in periods of overgeneration. As of January 2025, Italy had 13.3GWh of Bess capacity — mainly in the south of the country and on the islands — and is expected to reach 50GWh by 2030. And Terna last week said it will hold its first auction for large-scale Bess with 2028 delivery on 30 September, for which it has already approved 9GWh, as reported by the operator's grid development manager Francesco Del Pizzo. Connection requests for Bess projects more than tripled in 2024 to 253GW worth of capacity, mainly because of a significant reduction in capital expenditure for the assets, which has dropped by around 40pc since 2022 and is expected to stabilise at a competitive price in the next few years. By Ilenia Reale Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ontario adds fee for electricity exports to US: Update


25/03/10
25/03/10

Ontario adds fee for electricity exports to US: Update

Updates with comments from US utilities Calgary, 10 March (Argus) — Ontario is imposing a 25pc tariff on electricity exports to the US starting today, carrying through on its threatened retaliation for a trade war started by US president Donald Trump. "We will apply maximum pressure to maximize our leverage, that's why today we're moving forward with a 25pc surcharge on electricity exports for the 1.5mn American homes and business that Ontario powers," Ontario premier Doug Ford said today in Toronto. Ontario was the largest exporter of electricity to the US in 2023, sending 15.2 TWh to New York, Michigan and Minnesota. The neighbouring province of Quebec, which exported 13.4 TWh the same year to New York and New England, has said it is also considering its options amid the trade war. Ford said he feels "terrible" because average consumers will pay when it is really Trump who is responsible. The surcharge will cost the US up to $400,000/d, amounting to an increase of $100 for consumers each month, according to Ford. "I will not hesitate to increase this charge," said Ford. "If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely." Trump on 4 March imposed a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. But executive orders that he signed on 6 March exempted North American trade covered by the US-Mexico-Canada (USMCA) free trade agreement from new tariffs after 12:01am eastern time on 7 March. Trump has said he is delaying the tariffs on Canada and Mexico until 2 April, but his executive orders make no mention of that restart date. Minnesota Power, a subsidiary of Allete, imports "a small portion" of its electricity from Ontario but expects the impact to be "negligible", the utility said. Minnesota Power receives 11pc of its of its energy supply from Manitoba Hydro, but Manitoba has not followed Ontario's lead and imposed a surcharge. Michigan's largest utility, Consumers Energy — which serves 6.8mn of the state's 10mn residents — does not purchase power from Ontario. Xcel Energy, which serves customers in Minnesota and Michigan, also said it did not buy power from Ontario. By Brett Holmes and Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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