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China’s Role in the Expansion of Nuclear Energy in Latin America and the Caribbean

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Chapter
CHINAS ROLE IN THE EXPANSION
OF NUCLEAR ENERGY IN LATIN AMERICA
AND THE CARIBBEAN
Jorge Morales Pedraza
Senior Researcher Consultant, Vienna, Austria
ABSTRACT
Nuclear energy is one of the different energy sources currently used
by 33 countries (including Taiwan) to generate electricity in all geographic
regions. China currently has the worlds largest nuclear under construction
program, with 12 new units for a total net capacity of 11,806 MWe or
22.6% of the total (53 units) in 2020. Likewise, China promotes an
ambitious export nuclear program of domestically manufactured nuclear
power reactors to other countries in all geographical regions. In Latin
Americas specific case, three countries, Argentina, Brazil, and Mexico,
have seven nuclear power reactors in operation and two more under
construction. According to the Chinese nuclear industrys expansion plans,
it is expected that China could participate more actively in the development
of the use of nuclear energy for electricity generation in the region in the
coming years, particularly in Argentina and Brazil.
Jorge Morales Pedraza
2
Keywords: China, Argentina, Brazil, Mexico, Latin America and the
Caribbean, nuclear energy, electricity generation, IAEA, nuclear power
plants, nuclear power reactors
INTRODUCTION
Nuclear power is one of the different energy sources currently used by
33 countries [1] in all geographic regions for electricity generation. Despite
the increasing use of nuclear energy and other renewable energy sources for
electricity generation worldwide, oil, coal, and gas remain the energy
resources more used for the same purpose today. It is expected that these
three types of energy sources represent around 87% of the total energy
supply in 2030. Oil will remain the main energy source (about 34% of the
total), followed by coal (about 28%). It is important to single out that almost
two-thirds of the increase in coal supply between 2000 and 2030 will come
from Asia. Projections show that natural gas will represent about 25% of the
worlds energy supply by 2030 due to an increase in electricity generation
use.
Since the 70s of the last century, as a result of the oil embargo on
Western countries adopted by the Arab oil exporter countries, and to
minimize its impact on the developed country economies, a period of a
systematic increase in the worldwide consumption of other types of energy
sources different from oil, coal, and gas, such as nuclear energy and
hydropower began. Several governments have been promoted, since the last
decade of the 20th century, an increase in the use of other types of energy
sources such as wind, solar, geothermal, and bioenergy for electricity
generation, and a reduction in the use of conventional energy sources such
as oil and coal for the same purpose. These actions aim to diversify the
energy mix of developed and the most advanced developing countries
economies to ensure energy supply (Rivera Blanco, 2015).
Undoubtedly, environmental pollution, limited fossil fuel reserves [2],
and the need to diversify the energy matrix of several countries, among other
factors, have been important elements in the promotion in the use of these
China’s Role in the Expansion of Nuclear Energy ...
3
new energy sources for electricity generation and the development of more
efficient and less polluting technologies of the environment.
CURRENT STATUS IN THE USE OF NUCLEAR ENERGY
FOR ELECTRICITY GENERATION WORLDWIDE
According to the IAEA-PRIS database, in 2020, there were 449 nuclear
power reactors in operation worldwide in 33 countries with an electricity
generation capacity installed of 392,779 MWe. Nuclear power plants
generated 2,586,163.02 GWh (see Table 1) in 2019. Other 53 nuclear power
reactors are under construction in 21 countries with a net capacity of 56,276
MW.
Table 1 shows the number of nuclear power reactors in operation in the
different countries in 2020.
Table 1. Number of nuclear power reactors in operation in 2020
Country
Number
of
Operated
Reactors
Total Net Electrical
Capacity [MW]
Nuclear
Electricity
Supplied [GW.h]
Nuclear
Share [%]
ARGENTINA
3
1,641
7,926.96
5.9
ARMENIA
1
375
2,028.96
27.8
BELGIUM
7
5,930
4,1421.66
47.6
BRAZIL
2
1,884
15,224.11
2.7
BULGARIA
2
2,006
15,868.88
37.5
CANADA
19
13,554
94,853.85
14.9
CHINA
48
45,518
33,0122.19
4.9
CZECH REPUBLIC
6
3,932
28,581.12
35.2
FINLAND
4
2,794
22,914.88
34.7
FRANCE
58
63,130
382,402.75
70.6
HUNGARY
4
1,902
15,414.83
49.2
INDIA
22
6,255
40,740.49
3.2
IRAN, ISLAMIC REPUBLIC
OF
1
915
5,865.73
1.8
JAPAN
38
36,476
65,681.92
7.5
KOREA, REPUBLIC OF
25
23,833
138,809.35
26.2
Jorge Morales Pedraza
4
MEXICO
2
1,552
10,880.73
4.5
Table 1. (Continued)
Country
Number
of
Operated
Reactors
Total Net Electrical
Capacity [MW]
Nuclear
Electricity
Supplied [GW.h]
Nuclear
Share [%]
NETHERLANDS
1
482
3,700.71
3.2
PAKISTAN
5
1,318
9,065.80
6.6
ROMANIA
2
1,300
10,368.21
18.5
RUSSIA
39
28,448
195,535.15
19.7
SLOVAKIA
4
1,814
14,282.25
53.9
SLOVENIA
1
688
5,532.98
37.0
SOUTH AFRICA
2
1,860
13,602.57
6.7
SPAIN
7
7,121
55,856.07
21.4
SWEDEN
8
8,592
64,428.86
34.0
SWITZERLAND
5
3,333
25,369.65
23.9
UKRAINE
15
13,107
78,144.26
53.9
UNITED KINGDOM
15
8,923
51,032.09
15.6
UNITED STATES OF
AMERICA
98
99,648
809,358.57
19.7
Total
449
392,779
2,586,163.02
NA
Source: International Atomic Energy Agency (IAEA) and PRIS.
Table 2 shows the number of nuclear power reactors under construction
in 2020.
The rapid economic development of many countries, together with
improvements in their populations’ livelihoods, has led to an increase in the
electricity demand, particularly in certain developing countries. It is
impossible to indefinitely exploit fossil fuel resources such as coal, oil, or
natural gas to satisfy the growing electricity demand worldwide, much less
to meet the expected increase in electricity demand that will occur in the
coming decades. The reason is simple: there are limited fossil fuel energy
sources, and some of them have a very negative impact on the environment
and the population.
On the other hand, from the point of view of energy efficiency, if Figure
1 is carefully analyzed, it is easy to state that nuclear power plants occupy
the first place compared to other conventional and most renewable energy
sources. The efficiency level of conventional and most renewable energy
China’s Role in the Expansion of Nuclear Energy ...
5
sources is low, particularly in the case of most renewable energy sources
compared with coal and natural gas, and at a considerable distance from
nuclear energy efficiency, except for hydroelectric.
Table 2. Number of nuclear power reactors under construction in 2020
Number of Reactors
Total Net Electrical Capacity [MW]
1
25
2
2,160
1
1,110
1
1,340
12
11,806
1
1,600
1
1,630
7
4,824
1
974
2
2,653
4
5,360
2
2,028
3
3,459
2
880
2
2,228
2
2,070
3
4,035
2
3,260
2
2,234
2
2,600
53
56,276
Source: IAEA-PRIS 2020.
Source: Isidoro de la Fuente (2013).
Figure 1. Average operating efficiency by energy source (2011).
Jorge Morales Pedraza
6
In other words, for a limited group of countries, the use of nuclear energy
for electricity generation is a viable and efficient option to diversify their
energy matrix, thereby reducing their dependence on fossil fuels and
increasing their energy security.
CURRENT STATUS AND PERSPECTIVES IN THE USE
OF NUCLEAR ENERGY FOR ELECTRICITY GENERATION
IN CHINA
According to Wind Magazine and Electric Vehicle (REVE 2017), China
will prioritize reducing renewable energy costs, improving energy
efficiency, and increasing innovation and cooperation in global production
in the energy sector. Amid great energy demand and increased
environmental challenges, China strives to build a greener energy system
through increased investment in the clean energy sector during the coming
years.
Chinas total energy consumption will be limited to 5,000 million tons
of coal equivalent by 2020, representing an annual increase of about 2.5%
between 2016 and 2020, according to the National Energy Administration
Li Yangzhe. The growth rate will be less than the 3.6% annual growth
recorded during the 2011-15 period, Li said at a press conference where he
presented the highlights of the 2016-20 five-year plan for the energy sector.
The plan foresees a 15% reduction in energy use per unit of gross domestic
product (GDP) by 2020, the official said. The focus should be on quality in
the development of the energy sector, actively reducing excess capacity, and
promoting the development of low-carbon and green energy, Li said.
The priority will be to strengthen the competitiveness of Chinese energy
and related sectors using a market-oriented approach. According to the most
recent plan, the share of non-fossil fuels will increase to more than 15%, and
the share of natural gas will reach 10% by 2020. China, in 2020, has the
world largest nuclear program under construction with 12 units (14 units if
Taiwan is included), with a net capacity of 11,806 MWe, 48 units in
China’s Role in the Expansion of Nuclear Energy ...
7
operation with a net capacity of 45,518 MWe and generated, in 2019, a total
of 33,0122.19 GWh representing 4.9% of the total electricity generated
within the country in that year.
The above data indicate that despite all measures adopted by the Chinese
government to reduce the use of coal for electricity generation and heating
and the pollution of its main cities, the use of nuclear energy for this specific
purpose is not yet playing a relevant role within the energy mix of the
country. The additional measures already adopted by the Chinese
government in the energy sector should increase the nuclear share
significantly during the coming years.
IMPACT ON THE CHINESE NUCLEAR DEVELOPMENT
PROGRAM OF THE NUCLEAR ACCIDENT AT
THE FUKUSHIMA DAIICHI NUCLEAR POWER PLANT
Undoubtedly, the nuclear accident at the Japanese Fukushima Daiichi
nuclear power plant [12] in March 2011 had a negative impact on the world
nuclear industry and the implementation of programs already approved to
expand nuclear energy use for electricity generation in many countries,
including China. In 2012, the State Council of China announced that it had
decided to restart the execution of its approved nuclear energy program,
resuming the works of the nuclear power plants that have been paralyzed
since the nuclear accident at the Fukushima Daiichi nuclear power plant.
This decision was taken after a comprehensive safety revision of all nuclear
power plants in operation and the program to construct new nuclear power
plants in the future.
The outcome of the approved program review allowed the
implementation of this program in the future but with important
modifications in terms of its nuclear power plants operational safety.
China, a country with high pollution in its main cities, has no other
choice but to increase the role of nuclear, solar, wind, and hydro energy
sources for electricity generation, within its future energy mix. The purpose
Jorge Morales Pedraza
8
is to meet its international commitments to reduce pollution at an acceptable
level for the environment and population and become an undisputed leader
in developing and using less-polluting energy technologies for electricity
generation. To increase the role of nuclear energy in the countrys energy
mix, China must ensure the maximum possible operational safety of its
nuclear power plants currently in operation and under construction in the
country, and to transfer this experience to new nuclear power plants that
China would build in other countries in the future, particularly in the Latin
American region [3].
PRESENCE OF CHINA IN THE ECONOMIC DEVELOPMENT
OF THE LATIN AMERICAN AND THE CARIBBEAN REGION
Since 2008, China has become one of the main sources of direct
investment in the world. In the Latin American and the Caribbean region,
only in the year 2010 is estimated that Chinas direct investment in the
region reached an amount exceeding US$15,000 million [4] (ECLAC [5],
2010).
From 2010 to 2015, China invested around US$10 billion annually in
the region, according to data provided by ECLAC [6]. The vast majority of
these investments have focused on exploiting natural resources. However, it
is expected that China will diversify its direct investment in the region to
include the construction and manufacturing sectors as well [7].
Chinese President Xi Jinping, in his opening speech of the first
ministerial forum between China and the 33 countries of the Community of
Latin American and Caribbean States (CELAC), established the goal of
investing up to US$250,000 million in the region in the next decade. That
would mean, on average, about US$25,000 million annually. According to
ECLAC [8], that figure is well above the approximately US$10,000 million
that each year from 2010 to 2015, Chinese companies have disbursed in the
region, according to ECLAC [8].
China’s Role in the Expansion of Nuclear Energy ...
9
For several years, China has positioned itself as the main driver of world
growth, with national growth rates that have reached 10% per year. Despite
that the Chinese authorities have approved growth targets for the period
2011-15 of the order of 7%, China will continue to be one of the fastest-
growing economies at the world level during the period 2015-19. Thus,
China will remain a key actor in the center of the world economy scenario
(Pérez Marexiano, 2013), particularly in the Latin American and Caribbean
region.
Since its beginning, Chinas economic development strategy promotes
foreign investment in its territory to produce the goods and the products
needed to ensure its economic development. Subsequently, the strategy
mentioned above was modified to promote instead of exporting primary
products and manufactures based on natural resources at low prices to other
countries, mainly the USA and the European Union (EU), to begin exporting
goods with greater technological content and foreign investments. This new
development strategy aimed to obtain the necessary financial resources to
support this development strategy, complemented by reducing exports.
From 1985 to 2007, Chinas direct investment remained at 1% of global
foreign direct investment, but takeoff was produced from 2008 when it
reached 4.1% of the world total (ECLAC, 2010).
With the rapid development of Chinas globalization process, Chinese
enterprises direct foreign investment has maintained rapid growth for 15
consecutive years, reaching its peak with over US$196 billion outflows in
2016. Despite the decrease of Chinas direct investment outflows since
2017, China is still one of the worlds major foreign investors, ranking third
after the United States and Japan. The development of this process has made
China a fundamental source of imports from the rest of the world, especially
from Latin America and the Caribbean countries. As a result of this process,
China has become one of the regions main commercial partners, slowly
displacing the USA. Chinas direct investment in the USA fell in 2019 to its
lowest level since the Great Recession, even before the coronavirus
pandemic shut down much global commerce. The decline in Chinas
investment in the USA reflected tensions between the worlds two biggest
economies and the Chinese governments overseas investment restrictions.
Jorge Morales Pedraza
10
Chinas direct investment in the USA dropped 7.5%, falling from US$5.4
billion in 2018 to US$5 billion in 2019, the lowest level since the recession
year of 2009. Chinese direct investment includes mergers, acquisitions, and
investments in offices and factories but not financial investments like stocks
and bonds (Wiseman, 2020).
Outflows of direct foreign investment from China began with the
countrys economic opening in the early 80s. According to China Global
Investment Tracker (2020), the value of Chinas overseas investment and
construction combined since 2005 exceeds US$2 trillion. In 2019, Chinese
construction held roughly steady while investment fell. It is important to
single out that the Chinese direct investment in Latin American and the
Caribbean region grew each year within the period 2006-17 (see Figure 2).
According to the Global Economic Governance Institute (GEGI) at
Boston University, China provided US$102 billion in loans to Latin America
and the Caribbean between 2005 and 2013 (BBC, 2014), and US$ 2 trillion
until 2019.
Source: Chinese Ministry of Commerce.
Figure 2. Stock of Chinese direct investment in Latin America and the Caribbean
continues to increase.
To promote China and the Latin America and the Caribbean countries
economic development, the Chinese government has adopted a strategy
China’s Role in the Expansion of Nuclear Energy ...
11
supporting Chinese companies investment in manufacturing, agriculture,
forestry, fishing, energy and mineral resources, infrastructure, and services
sectors. Chinas trade with Latin America and the Caribbean countries was
over US$307 billion in 2018. Today, China is Latin America and the
Caribbeans second-largest trading partner behind the USA, representing
11% of regional exports and 18% of its imports in 2017. In fact, since 2015,
China has ranked as South Americas top trading partner. The main
destinations for Chinese investment in the region have been Brazil, Peru,
and Argentina.
NEW AREAS OF COOPERATION BETWEEN CHINA AND
THE LATIN AMERICAN AND THE CARIBBEAN COUNTRIES
The new model for the promotion of the cooperation between China and
the Latin American and Caribbean countries for the development of its
productive capacity is based on the following three pillars:
Logistics;
Electricity;
Informatic.
A new boom has emerged in the region in the construction of new
infrastructures to boost regional interconnectivity. With Chinas support and
relevant regional organizations, the Latin American and the Caribbean
countries have been developing mega infrastructure construction projects.
It is well known that Chinese enterprises have rich experience in the
construction of infrastructures and executing mega-projects. That is an area
where China also has available advantageous productive capabilities. Both
sides may well develop beneficial complementary cooperation capability to
execute mega-projects, particularly the construction of the interocean
railroad jointly promoted by China, Brazil, and Peru. This mega-project can
promote active cooperation in constructing infrastructure within the region,
Jorge Morales Pedraza
12
including railways, highways, ports, and airports. The ultimate goal would
be to connect all Latin American and Caribbean countries with rail transport
as its backbone [9].
Certain countries in Latin American and the Caribbean region have rich
oil and gas resources and enormous development potential in solar, wind,
and nuclear energy. Chinese companies have rich experience in the
construction and management of power grids. They are ranked among the
worlds leading companies in the technology of remote electrical
transmission. For this reason, the development of cooperation in the areas
concerned will help raise the capacity of countries in the region in the
electricity production and electrical transmission and connect all countries
and territories of the region through the use of smart grid technology and
efficient power transmission.
An important element to achieve a beneficial development in the
cooperation between China and Latin American and Caribbean countries is
financing this cooperation through financial funds, granting loans, and
insurance to support this cooperation. Chinese financing companies are
interested in providing the resources needed to support this cooperation to
benefit countries in the Latin American and Caribbean region.
Finance is the lifeblood of the real economy, and the mega-projects of
cooperation between China and the region cannot develop without financial
support. The agreement reached between China and Brazil on creating a
common fund to support Sino-Brazilian cooperation in developing its
productive capacity is a clear example of this cooperation.
On the other hand, China has announced the creation of a Special Fund
for Productive Capacity Cooperation between China and Latin America and
the Caribbean countries. This special fund consisting of US$30,000 million,
will be used for the establishment of the Financial Income Corporation,
which will offer rental services for large tankers, gas transport vessels, and
well drilling platforms equipment needed in some countries of the region for
economic development. China will also improve credit insurance for long
and medium-term exports in support of Chinese companies exporting to
Latin America and the Caribbean countries. China expects to reach
US$500,000 million in Chinese-Latin American and Caribbean trade, and
China’s Role in the Expansion of Nuclear Energy ...
13
US$250,000 million for the stock of Chinese investments in the region
during the next years.
According to ECLAC (2010), Brazil and Argentina were the two main
Chinese investment receptors in the Latin American and the Caribbean
region. These investments have predominantly taken the form of joint
ventures, purchase of stock packages, and agreements with state agencies.
Most of the investment flows took place in the agricultural, mining, oil,
petrochemical, manufacturing, pharmaceutical, automotive, rail,
infrastructure, and financial sectors. The energy and natural resources
sectors accounted for 71% of the total US$14.08 billion invested by China
in Argentina in the last three years. The main provinces that have been the
destination for Chinese investments are Tierra del Fuego, Rio Negro, La
Rioja, Santa Fe, Salta, and Buenos Aires (Pérez Marexiano, 2013).
In Mexicos case, Chinese investments are relatively small compared
with such investments concerning Argentina and Brazil, and other Latin
American countries (see Table 1).
CURRENT STATUS AND PERSPECTIVES OF THE USE
OF NUCLEAR ENERGY FOR ELECTRICITY GENERATION
IN LATIN AMERICA AND THE CARIBBEAN
Many Latin American and Caribbean countries use hydropower and
fossil fuels as their main energy sources for electricity generation. Still,
gradually they are increasing the use of certain renewable energy types such
as wind, solar, biomass, among others, with the same objective. Nuclear
energy, whose effect on the environment is very low, is not among the most
usable energy source for electricity generation in the region. It is
concentrated in only three countries: Argentina, Brazil, and Mexico [10].
This situation will remain unchanged in the coming years. In terms of
generating electricity, the use of nuclear energy represents between 3% and
4% of the total electricity produced in these countries (Forbes Staff, 2017).
Jorge Morales Pedraza
14
The complexity of nuclear technology, the limited capacity of the
electricity grids in most of the countries in the region, the very limited
existence of properly trained professionals and technicians, the
technological development level of the countries, among other factors, make
it difficult and less attractive the use of nuclear energy for electricity
generation for many countries in the region compared to other energy
sources.
According to the IAEA-PRIS database, in 2020, Argentina has three
units in operation with a gross installed capacity of 1,763 MW and one unit
under construction with an installed gross capacity of 29 MW [11]. On the
other hand, in 2020, Brazil has two units in operation with an installed gross
capacity of 1,990 MW and one unit under construction with an installed
gross capacity of 1,405 MW. Finally, in 2020, Mexico has two units in
operation with an installed gross capacity of 1,440 MW and no units under
construction. In total, the region has seven nuclear power reactors in
operation with an installed gross capacity of 5,193 MW and two nuclear
power reactors under construction with an installed gross capacity of 1,434
MW.
THE INVESTMENT OF CHINA IN THE AMERICA LATINA
AND THE CARIBBEAN NUCLEAR ENERGY SECTOR
Without a doubt, the nuclear accident at the Fukushima Daiichi nuclear
power plant forces several governments to review the decisions already
taken or to be taken regarding the following issues carefully:
The expansion of their programs to increase the use of nuclear
energy to generate electricity;
To stop the execution of their plans for the expansion or introduction
of nuclear energy for electricity generation already approved;
To close all its nuclear power plants in operation in the future;
China’s Role in the Expansion of Nuclear Energy ...
15
Not to authorize the construction of new nuclear power plants and
abandon the use of this type of energy source for electricity
generation in the future;
A thorough review of all aspects of nuclear power plants safety to
decide whether to continue using this type of energy source for
electricity generation in the future.
Fears about the future of using nuclear energy for electricity generation
also reached Latin America and the Caribbean. Due to this fear, Mexicos
government announced that it will review its two nuclear reactors safety
parameters in operation and does not foresee the construction of new nuclear
power reactors during the coming years. Former Venezuelan President Hugo
Chavez, as a result of the nuclear accident in the Fukushima Daiichi nuclear
power plant, ordered to freeze the plans he had with Russia in the field of
the use of nuclear energy for peaceful purpose, including the possible
construction of a nuclear power plant in the future (Smink, 2011).
On the other hand, and before the nuclear accident mentioned above, an
IAEA report highlighted that about ten countries in Latin American and the
Caribbean region could introduce nuclear energy for electricity generation
in the future. These countries are Bolivia, Chile, Dominican Republic,
Ecuador, El Salvador, Haiti, Jamaica, Peru, Uruguay, and Venezuela. Some
of these countries had requested the IAEA support to initiate relevant
activities associated with the possible use of nuclear energy for electricity
generation through nuclear power plant operations in the future. However,
it is important to note that some of these countries do not currently meet the
minimum conditions necessary for constructing this type of power plants,
such as the Dominican Republic, El Salvador, Haiti, and Jamaica. This
renewed interest of several countries in the region in the use of nuclear
energy for electricity generation showed a clear indication of nuclear
energys renaissance worldwide, after decades of stagnation due to the
nuclear accident at the Chernobyl nuclear power plant in Ukraine, in 1986.
However, this renewed interest was frustrated once again after the
nuclear accident at the Fukushima Daiichi plant nuclear power. Currently,
only Bolivia [13] and Chile continue analyzing the convenience of
Jorge Morales Pedraza
16
expanding to the energy sector their existing nuclear facilities dedicated to
the peaceful use of this type of energy source in several economic sectors
[14].
In the cases of Argentina and Brazil, it is important to note that both
countries have been engaged in the development of multiple activities in the
nuclear field for nearly 60 years, including the construction of nuclear power
plants, the development of essential parts of the nuclear fuel cycle, and the
technology research for advanced reactors. The purpose of these activities is
to ensure their energy independence and the diversification of its energy
mix. In the specific case of Argentina, the government decided to continue
with its already approved nuclear power expansion plans for electricity
generation and is considering the construction of more nuclear power
reactors in the future.
Without a doubt, nuclear energy is an important element for Argentina
and Brazils energy industry and a matter of national sovereignty and pride.
For this reason, both countries will maintain and enhance what they have
already achieved in this specific energy sector. Nuclear accidents at Three
Mile Island in the USA, Chernobyl in Ukraine, and Fukushima Daiichi in
Japan, will not paralyze the expansion in the use of nuclear energy for
electricity generation in the future. However, both countries have already
adopted concrete measures to increase their nuclear power plants safety
currently in operation and those that they have in plan to build in the future.
CHINAS ROLE IN THE DEVELOPMENT OF NUCLEAR
ENERGY IN ARGENTINA
The National Atomic Energy Commission (CNEA) of Argentina was
established on 31 May 1950 by Decree No. 10.936. Since then, CNEA is the
main public organization devoted to research and development in the
peaceful uses of nuclear energy and is also responsible for promoting highly
specialized training of human resources in the field of nuclear science.
CNEA has carried out a series of activities focused on the research and
China’s Role in the Expansion of Nuclear Energy ...
17
development of nuclear energy, including the construction of several nuclear
research reactors. Argentina has seven nuclear research reactors, five of
them in the following research centers:
Bariloche Atomic Centre (CAB by its initials in Spanish), mainly
devoted to research, development, and training of human resources
in the fields of physics and nuclear engineering;
Constituyentes Atomic Centre (CAC by its initials in Spanish)
performs activities within basic research and technological
development, focusing on interdisciplinary activities such as micro
and nanotechnology;
Ezeiza Atomic Centre (CAE by its initials in Spanish), located in
Ezeiza district, is mainly devoted to nuclear technology applications
development;
Pilcaniyeu Technological Complex (CTP by its initials in Spanish),
located in Río Negro province, is devoted to uranium enrichment
and other technological activities.
TWO NUCLEAR RESEARCH REACTORS ARE ALLOCATED
AT PUBLIC NATIONAL UNIVERSITIES
In 1964, Argentina conducted a viability study to build its first nuclear
power plant in Lima, 115 km from Buenos Aires (Atucha 1), with a capacity
between 300 and 500 MW. The Atucha 1 nuclear power reactor is based on
the use of heavy water as a coolant and using natural uranium as fuel. The
first nuclear power plant came into operation in 1974.
In 1967, a second feasibility study was carried out by CNEA to construct
a second nuclear power plant with a higher capacity, in Embalse in the
Córdoba region, 500 km inland. In this case, a CANDU-6 reactor from
Atomic Energy of Canada Ltd was selected, and it was built by the Italian
company Italimpianti. The Embalse nuclear power plant came into operation
in 1984.
Jorge Morales Pedraza
18
In 1979, the construction of a third nuclear power reactor in Argentina -
Atucha 2 - was planned due to the Argentinian governments decision to
have four more units in operation between 1987 and 1997. It was a design
by Siemens of Germany. Construction began in 1981. However, work
progressed slowly due to lack of funds and was suspended in 1994 with 81%
of the nuclear power reactor built.
In 1994, Nucleoeléctrica Argentina SA (NASA) was created to take over
the CNEA nuclear power plants in operation in the country. For this reason,
NASA is now in charge of the supervision of the construction of Atucha 2.
In 2003, plans were presented to complete the construction works of the
Atucha 2 nuclear power reactor. Atucha 2 was completed in 2014 and began
operation in 2015.
In August 2006, the government announced a plan with a value of
US$3,500 million for further development of nuclear energy in Argentina.
The purpose of the mentioned plan was to reduce fossil fuel use for
electricity generation and take advantage of the countrys experience in
using nuclear power with this same objective. The aim was to complete the
Atucha 2 unit and extend the working life of Atucha 1 and Embalse. The
goal was to increase nuclear powers role in expanding the countrys
electricity generation capacity to meet the foreseeable growing energy
demand in the future. However, this plan was not implemented due to a lack
of financial resources.
In November 2004, China former President Hu Jintao visited Argentina
and, with former President Nestor Kirchner, signed a Memorandum of
Understanding (MoU) between Argentina and China to expand and diversify
its trade relations investment. The MoU mentioned above states that both
parties express their willingness to actively cooperate in several sectors such
as infrastructure, transportation, housing, energy, agriculture, basic
industries, telecommunications, and mines. Also, it stipulates that in these
economic sectors, Chinas government will encourage Chinese financial
institutions to grant credit and financing facilities to support Chinese
companies to carry out projects in Argentina.
According to Perez Marexiano (2013), with the signing of this MoU,
trade relations between the two countries should be strengthened and
China’s Role in the Expansion of Nuclear Energy ...
19
increase Chinese investment in an important group of Argentinas economic
sectors. The exchange of official visits continued along with the signing of
new agreements, including the Memorandum of Understanding for the
Promotion of Chinese Investments in Argentina signed in July 2010.
According to the Argentinian governments plans, this MoU identifies the
economic sectors that require a group of investments to guarantee their
development. These economic sectors are biofuels, wind energy, mining,
food processing, infrastructure and transportation, forestry, pharmaceutical,
veterinary products, and agricultural machinery.
During the tour of Prime Minister Wen Jiabao for the South American
region in June 2012, he visited Argentina and signed several agreements in
various strategic sectors for the economic development of the country.
Among these sectors are nuclear energy, agriculture, and transport. During
the visit to Argentina, he expressed the Chinese governments desire to
double the trade flow between China and the Mercosur countries over the
next four years and propose a feasibility study on establishing a possible free
trade zone between Mercosur and China. In the last decade, trade between
Argentina and China grew exponentially, becoming China Argentinas
second trade partner after Brazil.
On the other hand, and in order to meet the growing energy demand and
the diversification of the countrys energy matrix, the Argentinian
government decided to continue with its already approved nuclear energy
expansion plans, and for which external financing is needed. As of
December 2019, the electricity generation system in Argentina has a total
installed capacity of around 36,467 MW: 61.8% thermal power, 28.5%
hydropower, 5.2% other renewables (wind, solar, and others), and 4.5%
nuclear power. The Argentinian nuclear-installed capacity is now 1,641
MW. The electricity generated by nuclear power plants in 2019 was
7,926.96 GWh, which represents, according to the IAEA-PRIS database,
5.9% of the total electricity generated by the different energy sources
existing in the country in that year.
In the early 1980s, CNEA began the conceptual design of a small power
nuclear power plant, based on a light water reactor with passive and
redundant safety systems, known as Central Argentina de Elementos
Jorge Morales Pedraza
20
Modulares (CAREM). In 2007, activities were resumed under the guidance
of CNEA. CAREM-25 prototype is now under construction at the same site
where two nuclear power reactors, Atucha 1 and 2, are in operation and
under construction, respectively (see Figure 3). With the CAREM-25
prototypes construction, the country will have its first new-generation
nuclear power plant entirely designed and built-in Argentina in operation in
the future. That will represent a milestone for the national nuclear industry,
which shows a constant evolution during the more than 60 years since the
establishment of CNEA.
With the CAREM-25 reactors construction, Argentina reaffirms its
capacity to develop and commission nuclear power plants for electricity
generation in the country and abroad. With this action, Argentina is
emerging as one of the world leaders in the segment of Small and Modular
Reactors (SMR), adding new advanced technology to expand its nuclear
export portfolio to other countries. Among the main objectives of the
CAREM -25 prototype are the following:
To demonstrate the SMR concept on a smaller scale;
To generate capabilities for the development of nuclear projects
within CNEA, its associated companies, and the Argentinian private
industry;
To operate successfully commercial and nationally designed nuclear
power plants and repeat the success obtained with exported research
reactors (IAEA-Country Nuclear Power Profiles- Argentina, 2020).
As for the commercial of the CAREM-25 reactor, the strategy is more
strongly focused on engineering developments. The importance of CAREM-
25 is that this prototype of nuclear power reactor represents a new
opportunity for a high number of countries to increase the use of nuclear
energy for the electricity supply in areas located far from large urban centers
or manufacturing poles with high energy consumption. This new prototype
will also help develop and developing countries for electricity generation in
remote areas or regions with limited grid capacity. It will also provide other
China’s Role in the Expansion of Nuclear Energy ...
21
benefits such as desalination of seawater or steam supply for different
industrial uses.
Source: CNEA.
Figure 3. Atucha 1 and 2.
Table 3. Status and performance of nuclear power plants in Argentina
Reactor
Unit
Type
Net
Capacity
[MW(e)]
Status
Reactor
Supplier
Construction
Date
First
Criticality
Date
First
Grid
Date
Commercial
Date
UCF
for
2019
ATUCHA-
1
PHWR
340
Operational
SIEMENS
1968-06-01
1974-01-
13
1974-
03-19
1974-06-24
80.3
ATUCHA-
2
PHWR
693
Operational
SIEMENS
1981-07-14
2014-06-
03
2014-
06-25
2016-05-26
28.9
EMBALSE
PHWR
608
Operational
AECL
1974-04-01
1983-03-
13
1983-
04-25
1984-01-20
71.8
CAREM25
PWR
25
Under
Construction
CNEA
2014-02-08
Source: IAEA PRIS 2020.
On the other hand, Argentina’s government has authorized the
construction of two new nuclear power reactors for electricity generation in
the future. To carry out this expansion, Argentina will request China’s
financial support and provide the necessary technology for constructing
these two units. The construction of these two new units is expected to meet
Jorge Morales Pedraza
22
the estimated growing electricity demand and reduce oil and gas use with
the same objective during the coming years.
State-owned China National Nuclear Corporation is expected to provide
the technology needed to expand the current Atucha site. It will also provide
the necessary technology and resources to construct these two nuclear power
reactors using Chinese technology. Simultaneously, Argentina
Nucleoeléctrica has been designed to build the civil facilities where these
two new units will be located (Fontdegloria, 2015).
ROLE OF CHINA IN THE DEVELOPMENT OF NUCLEAR
ENERGY IN BRAZIL
According to Cubillas Meza (2012), Brazil began its nuclear program in
the 1950s. This development was characterized by maintaining a scientific
rhythm and level following the advances made in nuclear science
worldwide. In 1954, the National Nuclear Energy Commission (CNEN) was
established under the Nations Presidency offices direct control. It is worth
mentioning that, with the Atoms for Peace Program, Brazil received
assistance from the USA in nuclear matters, delivering three research
reactors under this program. Thus, between 1956 and 1973, these reactors
were installed in the Atomic Energy Institute of the Sao Paulo University, in
the Institute of Radioactive Research of the Minas Gerais Federal
University, and in the Nuclear Institute of the Rio de Janeiro Federal
University. In 1973, another research reactor was installed at the Radioactive
Research Institute of Belo Horizonte.
In the 1970s, Brazil faced a crisis in the energy sector. Due to its large
territory and population, Brazil needed to guarantee its energy needs safely
and constantly. As the population increased and industrial development
reached a high peak in the second half of the 20th century, these needs were
increasing, especially the demands for oil. Between 1940 and 1973, the
countrys oil consumption increased from 9% to 46%, and hydroelectricity
increased from 7% to 21%.
China’s Role in the Expansion of Nuclear Energy ...
23
Brazil produces more than 80% of the electricity consumed through the
operation of hydropower plants. However, available water resources near
the main consuming centers are in short supply. For this reason, it is
becoming increasingly difficult to meet the growing energy demand using
this specific type of energy source. Besides, obtaining the environmental
permission necessary for the construction and operation of new hydropower
plants is becoming extremely difficult due to the governments current
environmental protection policies and the limited water resources available
in the country.
On the other hand, electricity demand continues to grow, so the
government has been forced to explore other energy sources to cope with
this growth. Among these new options is nuclear energy. This specific
energy option is becoming more attractive considering that Brazil has the
sixth-largest world uranium reserve and the technology necessary to
manufacture nuclear fuel, ensuring its independence in supplying the fuel
for its nuclear power plants operation.
In 1968, the Brazilian government decided to begin using nuclear energy
for electricity production, with the primary objective of allowing the
electricity sector to learn about this modern technology and gain experience
to face possible future needs. In 1970, a contract of a turnkey project for a
609 MW(e) net capacity pressurized water reactor (PWR) (ANGRA 1) was
awarded to Westinghouse Electric Corporation of the USA. ANGRA 1
construction started in 1971, and the first criticality was achieved ten years
later. In 1975, in an effort to become self-sufficient in nuclear power
generation, Brazil signed an agreement with the Federal Republic of
Germany to build eight 1,300 MW(e) reactors (PWR Biblis B type) over a
period of 15 years. Under this agreement, two of these units (ANGRA 2 and
ANGRA 3) were scheduled for construction in the following year, with most
of their components imported from Kraftwerk Unions (KWU) in Germany.
According to this agreement, the rest of the plants components were to be
90% Brazilian made. The BrazilGermany agreement created the Empresas
Nucleares Brasileiras (Nuclebras) as the Brazilian state-owned nuclear
holding company. Additionally, several subsidiaries (joint companies) were
Jorge Morales Pedraza
24
established to achieve nuclear technology transfer from Germany (IAEA-
Country Nuclear Power Profiles-Brazil, 2019).
The first nuclear power plant, Angra 1, was built in the area of Rio de
Janeiro, with a net capacity of 609 MWe. Eletrobrás entrusted the
construction of this first nuclear power reactor to Furnas Centrales Eléctricas
SA, which carried out the international competition, won by the US
company Westinghouse. The construction of Angra 1 began in 1972 and
entered commercial service in 1985.
In June 1975, the Brazilian government signed a Cooperation
Agreement for the Peaceful Uses of Nuclear Energy with the Federal
Republic of Germany. In July of 1975, and within the framework of the
agreement mentioned above, the Brazilian government purchased two
nuclear power reactors called Angra 2 and Angra 3 from the German
company Kraftwerk Union AG - KWU, a subsidiary of Siemens SA. The
Brazilian company Norberto Odebrecht was contracted to carry out the civil
engineering work of Angra 2 and Angra 3, which began in 1976. However,
since 1983, construction activities faced a significant shortage of resources
forcing a drastic reduction in the construction work of Angra 2. In 1991, the
government decided to resume the construction of Angra 2 and stop all
works in Angra 3. All resources previously allocated to the construction of
Angra 3 were concentrated to conclude the construction of Angra 2. After
nine years, it came into operation in July 2000. Angra 2 has a net capacity
of 1,275 MWe.
In 1996, the government decided to include the completion of Angra 3
in its development plan. The construction of this unit was at that time at 45%.
In summary, in 2020, two nuclear power reactors are operating in Brazil
with a net installed capacity of 1,884 MWe, generating 16,129 GWh or 2.7
% of the countrys total electricity in that year. Brazil also has a nuclear
power reactor under construction (Angra 3) with a gross capacity of 1,245
MWe (see Table 4). Also, plans to build two new nuclear power reactors in
the Northeast of Brazil, which according to this plan should start operating
in 2021, although these two units construction work has not started yet.
On the other hand, the Electronuclear has proposed constructing up to
four new units in Brazils two different locations. The four units under
China’s Role in the Expansion of Nuclear Energy ...
25
consideration are Westinghouse AP1000, Areva-Mitsubishi ATMEA-1, and
Atomstroyexports VVER-1000.
Table 4. Status and performance of nuclear power plants in Brazil
Reactor
Unit
Type
Net
Capacity
[MW(e)]
Status
Reactor
Supplier
Construction
Date
First
Criticality
Date
First
Grid
Date
Commercial
Date
UCF
for
2018
ANGRA-
1
PWR
609
Operational
WH
1971-05-01
1982-03-
13
1982-
04-01
1985-01-01
88.6
ANGRA-
2
PWR
1275
Operational
KWU
1976-01-01
2000-07-
14
2000-
07-21
2001-02-01
91.2
ANGRA-
3
PWR
1245
Under
Construction
Source: IAEA-PRIS 2020.
Source: Wikipedia.
Figure 4. Angra nuclear power plant in Brazil.
To expand Brazils nuclear program, the Chinese and Brazilian
governments are negotiating the details of a cooperation agreement in the
field of nuclear energy and technology [15]. According to press reports
citing government sources from both countries, the Brazilian government
will create a working group to study its nuclear policy changes to continue
the agreements talks.
Jorge Morales Pedraza
26
The Brazilian Minister of Science and Technology, Eduardo Campos,
met with their Chinese counterparts in Beijing and other entrepreneurs in the
Asian country, taking advantage of a five-day trip of Brazilian government
representatives to this country. China is interested in uranium and
technology centrifugation for the enrichment of uranium developed by
Brazil. At the same time, Brazil is interested in participating in the
construction of 11 nuclear power reactors in China and developing Brazils
uranium enrichment program as a source of financing its nuclear power
program in the future [16]. The Brazilian government wishes to export
uranium to China and other countries to obtain the resources it needs to
finance new nuclear power reactors construction in the future.
Without a doubt, the strengthening of energy cooperation between China
and Brazil will boost both countries economic and trade relations. The
future of bilateral energy cooperation of China and Brazil can be summed
up in the following aspects:
Main development cooperation areas: Although bilateral
cooperation is now focused on the exploration and
commercialization of oil, it must be expanded to cover sectors such
as hydroelectric, electric power, new energy sources, coal, and
nuclear energy. Beyond oil trade, both countries can deepen
cooperation in oil exploration, financing of oil activities,
engineering services, and equipment, among others. Brazil has been
accelerating oil and gas exploitation in deep waters and faces
difficulties in capital, transportation, and technology, especially
when it comes to building new drilling rigs and drilling platforms,
where it still has an increasing lack of capital of US$100 billion.
Chinese companies have a great opportunity there to develop fruitful
cooperation for both countries;
Greater emphasis on scientific and technological cooperation: If the
cooperation model embodied in the Chinese-Brazilian terrestrial
resources satellite is taken as a reference, both countries can deepen
cooperation in scientific and technological innovation, in the
exploration of gas and oil in deep waters, as well as in biological
China’s Role in the Expansion of Nuclear Energy ...
27
energy, ethanol production technology, and the manufacture of
large-scale equipment;
Opportunities for cooperation in other markets: Brazil has been
promoting the integration of infrastructure in South America
through, for example, gas and oil pipeline construction projects.
China and Brazil can cooperate in this sector. Being an emerging
economy, Brazil is closely related to Africa and the Middle East,
where the two countries can also foster cooperation in the energy
sector (Hongbo, 2012).
Finally, it is important to note that all actions related to the energy
sector’s cooperation have been suspended after the new Brazilian
government took office. This suspension includes Chinas participation in
constructing new nuclear power plants in Brazil and Brazils participation in
constructing new nuclear power reactors in China.
CHINA ROLE IN THE DEVELOPMENT OF NUCLEAR
ENERGY IN MEXICO
Mexico is a country rich in hydrocarbon resources and is a net exporter
of energy. The countrys interest in nuclear energy is based on the need to
reduce its dependence on hydrocarbons for electricity generation and to
diversify its energy matrix as much as possible. As a result, the Mexican
government has been promoting the use of natural gas for electricity
generation in recent years due to the low prices of this type of energy source
and high disponibility while reducing oil use for the same purpose.
The growth in energy demand was very rapid in the 1990s but then
leveled off for a few years. During the period 2008-18, the energy demand
growth was 2.6% annual average. In 2019, Mexico generated 364 TWh
representing an increase of 4.3% concerning 2018 (BP Statistical Review of
World Energy 2020, 2020).
The origin of the electricity supply in Mexico is very diverse, with the
use of natural gas as the main energy source for electricity generation in
Jorge Morales Pedraza
28
2019 (205.6 TWh or 56.5% of the total), followed by renewables (61.6 TWh
or 16.9%), oil (37.7 TWh or 10.4%), coal (26.3 TWh or 7.2%), others (21.6
TWh or 5.9%), and nuclear energy (11.3 TWh or 3.1%).
Mexicos interest in nuclear energy became official in 1956 with the
establishment of the National Nuclear Energy Commission (CNEN).
CNENs primary role was to pave the way to introduce nuclear power and
other nuclear applications in Mexico. It encompassed all nuclear activities
in the country (exploration for uranium, nuclear research, regulations, etc.)
except for electricity generation by nuclear power, which was the sole
responsibility of CFE, and nuclear utilization radioisotopes. Later, CNEN
was transformed into the National Institute on Nuclear Energy (INEN),
which redefined its attributions but with very few changes to its
responsibilities (IAEA- Country Nuclear Power Profiles-Mexico, 2020). In
1979, INEN was replaced by three organizations:
The National Institute of Nuclear Research (ININ), in charge of all
the aspects related to nuclear research;
Mexican Uranium (URAMEX), in charge of uranium exploration
and eventually uranium production;
National Commission for Nuclear Safety and Safeguards (CNSNS),
in charge of nuclear regulation and safeguards. In 1985, URAMEX
was dissolved, and all its functions were passed to the Ministry of
Energy.
Table 5. Status and performance of nuclear power plant in Mexico
Reactor
Unit
Type
Net
Capacity
[MW(e)]
Status
Reactor
Supplier
Construction
Date
First
Criticality
Date
First Grid
Date
Commercial
Date
UCF
for
2019
LAGUNA
VERDE-1
BWR
777
Operational
GE
1976-10-01
1988-11-
08
1989-04-
13
1990-07-29
86.4
LAGUNA
VERDE-2
BWR
775
Operational
GE
1977-06-01
1994-09-
06
1994-11-
11
1995-04-10
77.0
Source: IAEA PRIS 2020.
China’s Role in the Expansion of Nuclear Energy ...
29
Source: Wikipedia.
Figure 5. Laguna Verde nuclear power plant.
Mexico’s first steps in developing a nuclear power program were taken
in 1966 when a preliminary investigation of potential sites for nuclear power
plants was carried out under the auspices of CFE and the CNEN. At the end
of the decade, the government concluded that nuclear power plants might
play a major role in the greater energy mix. In early 1969, CFE decided to
invite bids for a 600 MW(e) nuclear power plant of a proven type, and
invitations to tender were sent to several manufacturers. Bids were received
at the beginning of 1970. However, with up to date bids, the final decision
was taken in the middle of 1972. In 1976, the construction of the Laguna
Verde nuclear power plant was initiated, comprising two reactors of 654
MW(e) net each (see Table 5) supplied by Westinghouse [17]. The first unit
went into commercial operation in July 1990 and the second in April 1995.
Although the Mexican industry has not provided important elements for
the nuclear power plant in Laguna Verde, Mexican companies performed
civil work. Besides, the Mexican staff is responsible for the maintenance
work of both reactors.
It is important to note that Mexicos government continues debating the
expansion of nuclear power to reduce dependence on natural gas for
electricity generation and reduce carbon dioxide emissions [18]. In May
2010, Mexicos government considered several scenarios for constructing
four new nuclear power reactors for power generation between 2019 and
Jorge Morales Pedraza
30
2028. One of these scenarios involves the construction of up to ten nuclear
power reactors for power generation. The intention behind this plan is to
generate, using nuclear energy, almost a quarter of Mexicos energy needs
by 2028, which would allow the countrys carbon emission from power
generation to remain virtually unchanged since 2008, despite projections of
much higher electricity demand.
Cost studies showed that nuclear power was US$0.04/kWh more
competitive than power generated with natural gas in all scenarios
considered. However, with the low price of natural gas starting from 2010,
the nuclear accident at the Fukushima Daiichi nuclear power plant in March
2011, and the current low oil prices, the government decided to postpone
any decision on the construction of new nuclear power reactors in the
country. However, in the longer term, the use of SMR, such as the IRIS
reactor to generate electricity, and the desalination of seawater for
agricultural use in the country is under serious consideration.
In 2013, China and Mexico signed an MoU in the field of energy. Both
sides agreed to set as priority cooperation areas in renewable energies such
as solar and clean coal technology and CO 2 sequestration and capture. For
the moment, nuclear energy has been left out of this cooperation.
CONCLUSION
As can be seen, China has become an important partner for many
countries in the Latin American and the Caribbean region to promote
beneficial cooperation in several countries economic sectors . In the specific
field of nuclear power, China is ready to cooperate with at least two of the
three countries thinking of expanding the current use of nuclear power for
electricity generation in different ways.
In Argentinas case, it is expected that the construction of new nuclear
power reactors that the government is planning to build in the country will
be made using Chinas nuclear technology. Besides, China will finance,
partially or totally, the construction of these units.
China’s Role in the Expansion of Nuclear Energy ...
31
In Brazils case, it is expected that any new government in office will
return to nuclear cooperation with China. According to the nuclear program
approved, this action will allow Brazil to export uranium to China and
construct new nuclear power reactors in the country during the coming
years. However, China is not expected to participate in the construction of
new nuclear power plants in Brazil or Mexico but will cooperate in
developing other forms in the use of nuclear energy for peaceful purposes in
these and other countries in the region.
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[1] If Taiwan is included as an independent country from China.
[2] Oil, coal, and natural gas.
[3] The new nuclear power plants must be built using Generation III or III
+ or the future Generation IV reactors.
[4] Some experts estimate that Chinas direct investment in America and
the Caribbean region in 2010 amounted to about US$35,000 million
(Sevares, 2014).
[5] Economic Commission for Latin America and the Caribbean.
[6] Direct investments in Latin America and the Caribbean in 2014
amounted to US$158,803 million, of which 17% came from the USA
(US$26,996 million). Its investments make up a large part of total
Jorge Morales Pedraza
34
direct investment in the Central America subregion (33%), Mexico
(29%), and Colombia (14%).
[7] The cooperation plan between China and the Community of Latin
American and Caribbean States (CELAC) until 2019 provides bilateral
funds to finance projects in the region. China already announced in
July last year that it will contribute US$35,000 million to be invested
in six priority areas: energy and natural resources, infrastructure
construction, agriculture, manufacturing, innovation and information,
and communication technologies.
[8] Currently, only 4.1% of direct investments abroad by Chinese
companies fall in the region (ECLAC, 2010). 1-Venezuela is the first
Chinese investment destination in Latin America. On 19 September
2013, Oil Minister Rafael Ramírez announced an agreement with
China National Petroleum Corporation (CNPC) to invest US$28,000
million in a new project in the Orinoco Oil Belt. CNPC is the parent
company of Petrochina, the worlds second-largest oil company in
terms of capital. To this agreement was added another for US$14,000
million announced by Ramírez himself with the state oil company
China Petroleum & Chemical Corporation (SINOPEC). SINOPEC has
been the protagonist of another of the large Chinese investments in the
region. 2- Brazil: In October 2010, SINOPEC, the largest Chinese
refiner, acquired 40% of the Spanish REPSOL in Brazil for US$7.1
billion. In 2011, SINOPEC expanded its operations in Brazil to acquire
30% of the Portuguese GALP operations for more than US$5 billion.
The two operations indicate SINOPECs presence in Brazil and
Chinas partial acquisition strategy or a merger with already operating
companies. 3- Argentina: China National Offshore Oil Corporation
(CNOOC) has become the second-largest oil company in Argentina
behind the nationalized Yacimiento Petroliferos Fiscales (Y PF), with
a series of multimillion-dollar partial acquisitions of different
companies. The mother investment took place in March 2010 when
CNOOC bought 50% of the Argentine oil company BRIDAS for
US$3.1 billion. In November of that year, BRIDAS, now with a
Chinese majority, acquired 60% of Pan American Energy for
China’s Role in the Expansion of Nuclear Energy ...
35
US$7,000 million. In February 2011, Pan American Energy acquired
100% of ESSO Argentinas assets for more than US$800 million. The
nationalization of YPF in 2012, which put many Western nations on
the warpath, did not disturb China, which in January last year partnered
with Argentinas state oil company to exploit shale oil in the gigantic
Vaca Muerta reserve. 4. Peru: After the energy sector - oil and gas -
mining is the one that concentrates the largest Chinese investment in
the region. With the acquisition by the MMG LTD consortium of the
Las Bambas copper mine, the largest in Peruvian history, China
increased its investment in mining projects in the country to
US$19,000 million. According to estimates by the Chinese Peruvian
Chamber of Commerce (CAPECHI), China today controls 33% of the
Peruvian mining sector.
[9] Mexico began taking firm steps towards the introduction of its nuclear
program in 1969 and Brazil in 1970. Cuba, which was not included in
the list of countries that use nuclear energy for electricity generation,
began to take firm steps towards introducing this type of energy in the
1970s. The program envisaged the construction of three nuclear power
plants in the western, central, and eastern regions, with four units in
each of them, for a total of 12 units, and with a capacity of 4,800 MW.
The first of the three plants began to be built in Juraguá in the
Cienfuegos province in 1983. The units to be installed were the
WWER 440 anti- seismic V / 318 type of Soviet design. The program
was canceled in the 1990s due to a lack of funding (Morales Pedraza,
2012). Additional information on the Cuban nuclear program is
included in the book entitled Nuclear Power: Current and Future Role
in the World Electricity Generation, ISBN 978-1-61728-504-2, Nova
Science Publishers, 2012 and Energy in Latin American and the
Caribbean: The Current and Future Role of Renewables and Nuclear
Energy Sources in the Regional Electricity Generation, ISBN: 978-
1-62257-980-8, Nova Science Publisher Inc.; 2013.
[10] This unit is a prototype of a small and medium power reactor produced
entirely in the country (CAREM-25). That prototype represents the
new generation of nuclear power reactors (Generation IV) that is
Jorge Morales Pedraza
36
expected to allow the expansion of the nuclear programs in several
countries currently using this type of energy for generating electricity
or for the introduction of nuclear energy for the first time or that are
not using this type of energy source because they have a very limited
power grid capacity.
[11] For more information on what happened at the Fukushima Daiichi,
Three Miles Island, and Chernobyl power plants, consult the following
material: World Major Nuclear Accidents and their Negative Impact
on the Environment, Human Health and Public Opinion;
International Journal of Energy, Environment and Economics
(IJEEE# 2) Volume 21 Issue 2; Nova Science Publishers, Inc .; 2013.
[12] Bolivia has been discussing with Russia the possibility of expanding
the use of nuclear energy for peaceful purposes in the country,
including the future construction of nuclear power plants.
[13] It is important to highlight that the introduction of a program for the
construction of nuclear power plants for electricity generation in Chile
is an issue that has been discussed for several years now and on which
there is still no consensus on which way to go. The construction of a
nuclear power plant is supported by the countrys business community
only if the government decides to support the introduction of this type
of energy to generate electricity. But this decision is not an easy matter
for the government since it is impossible to ignore the countrys
characteristics where strong earthquakes occur throughout its
geography. In Bolivia’s case, the situation is much more complex than
that of Chile since the country does not have the specialized force, the
financial resources, or the experience in the use of nuclear energy for
other purposes. As is the case in Chile, it does not have the necessary
facilities to support the construction and operation of a nuclear power
plant for electricity generation. Of the other countries mentioned by
the IAEA, only Peru has the experience, certain facilities, and the
human resources necessary to embark on a program to construct
nuclear power plants in the future. However, the occurrence of strong
earthquakes in different areas of the country makes it difficult for the
China’s Role in the Expansion of Nuclear Energy ...
37
government to decide favorably on the use of nuclear energy for
electricity generation.
[14] Since the end of the Cold War, Brazil and Chinas trade link has taken
on new importance. As a result, China displaced Japan as Brazils main
Asian partner. However, and despite the increase in economic ties, the
axis of the relationship continues to be political: both countries have
developed joint space programs, coincide in international
organizations and defend a similar perspective of global insertion that,
without opposing directly to developed nations, it is based on the idea
of South-South cooperation. However, the challenge of expanding
Brazils participation in the global market and continuing the process
of economic development national requires actions in various regions
and not only in Latin America and the Caribbean. This objective -
defined as the universalization and diversification of Brazils external
associations - appears as a constant in defining the countrys foreign
policy now in question by the new Brazilian president.
[15] To sign an agreement for the supply of uranium and enrichment
technology with China, Brazil would have to change its current policy
of not exporting uranium to other countries.
[16] These capabilities have been increased to 777 MW and 775 MW,
respectively.
[17] Mexico needs to diversify its energy supply to reduce its dependence
on oil. It has already reached its peak of oil exploitation. The reserves
are decreasing significantly (23% only from 2000 to 2008), and the
existing fields do not guarantee continuity in supply due to the limited
extraction capacities and the decrease in restitution (Villareal).
ResearchGate has not been able to resolve any citations for this publication.
Book
It is certain that energy production and, particularly the generation and sustained growth of electricity, constitute indispensable elements for the economic and social progress for any country. Energy, undoubtedly, constitutes the motive force of civilization and it determines, to a high degree, the level of the future economic and social development of a country. To ensure adequate economic and social growth it is vital, that all available energy sources are used in the most efficient and economic manner for electricity generation. Electricity generation using fossil fuels is a major and growing contributor to the emission of carbon dioxide to the atmosphere, gas that produces a significant change in the world climate. These changes are affecting, in one way or another, almost all countries in all regions. However, renewable energy sources for the generation of electricity, including the use of nuclear energy need not produce CO2 and would have no negative impact on the world climate. However, all approved plans for the use of nuclear energy for electricity generation in the coming years are under deep revision in several countries after the nuclear accident in the Fukushima nuclear power plant located in Japan in March 2011. As a consequence of this accident, some countries have already decided to suspend expansion of their current nuclear power programs; others have suspended the introduction of a nuclear power program for electricity generation, while others have decided to shut down all operating nuclear power plants in the coming years. One of the main problems that the world is facing is how to satisfy the increase in electricity demand using all available energy sources in the most efficient manner and without increasing CO2 emission. The preparation of a national energy policy, in which priorities and preferences are identified, should be one of the main governmental responsibilities. Every country’s energy mix should involve a range of national preferences and priorities in order to satisfy the foreseable increase in electricity demand without affecting the climate. These national policies and strategies should balance between expected energy shortages, environmental quality, energy security, energy cost, public attitudes, safety and security, and production and service capabilities.
Understanding between the Government of the People's Republic of China and the Government of the Argentine Republic to Expand and Diversify their Relationship on Trade and Investments
  • Memorandum
• Memorandum of Understanding between the Government of the People's Republic of China and the Government of the Argentine Republic to Expand and Diversify their Relationship on Trade and Investments, 2010.
Understanding on Energy Cooperation signed by the Secretary of Energy, Pedro Joaquín Coldwell and the president of the National Development and Reform Commission of China
  • Memorandum
• Memorandum of Understanding on Energy Cooperation signed by the Secretary of Energy, Pedro Joaquín Coldwell and the president of the National Development and Reform Commission of China, Xu Shaoshi; 2013.