Brazil Proposes First BESS Project in 2027 Transmission Auction

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Brazil is preparing to auction 3,245 kilometers (2,016 miles) of new transmission lines that will also include the first BESS contracted in the transmission network. In recent months, the Brazilian government has taken steps to promote BESS development and integration in the energy sector.

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New BESS in Acre

Brazil's National Electrical Energy Agency (ANEEL) is proposing a new battery energy storage systems (BESS) for its April 2027 transmission auction in the state of Acre. The project aims to strengthen energy reliability supply through BESS integration in the network.

ANEEL is preparing to auction 12 lots for the construction of 3,245 kilometers (2,016 miles) of new transmission lines and 1,386 megavolt-amperes (MVA) of transformation capacity across 13 Brazilian states. ANEEL estimates investments across the auctioned areas will reach 12.9 billion reais (about US$2.51 billion) and generate 29,500 direct and indirect jobs. The auction is scheduled for April 30, 2027.

Among the projects to be auctioned is Lot 5, consisting of a 100-MW/200-MWh BESS connected to the 69-kilovolt (kV) sector of the Cruzeiro do Sul substation in Acre. According to ANEEL, this is the first BESS system to be contracted in the transmission segment of the national interconnected system (SIN). The BESS has a 36-month completion deadline and an 18-year contract period. The Industrial Info Resources Global Market Intelligence (GMI) Power Project and Plant databases offer a detailed project report and plant profile.

This is not the first time that Brazil has announced a BESS auction. In June, the Ministry of Mines and Energy published the guidelines for two new BESS auctions with at least 30 megawatts (MW) of available capacity and a four-hour continuous operation. The two auctions are scheduled for December 2 and 4, 2026.

Industrial Info Resources is tracking two active BESS projects in Brazil worth US$240 million.

Additionally, Industrial Info Resources is tracking 373 transmission and distribution projects in Brazil totaling US$13.61 billion.

In the last year, Brazil developed a new legal and regulatory framework to include energy storage in the power sector, allowing ANEEL to regulate BESS systems. The framework aims to guarantee the modernization and stability of the electricity sector and attract more investments into BESS.

Through these auctions and policies, the Brazilian government is creating multiple routes for BESS development, including standalone facilities, storage assets in the transmission segment, and storage in renewable power plants.

According to the National Operator of the Electric System (ONS), Brazil's electricity sector is dominated by hydropower, which accounts for 41.5% of the nation's capacity. However, the fastest-growing power-generating technologies are distributed and mini-generation wind and solar systems, which represent just over 20% of the nation's capacity.

Similarly, wind and solar power generation capacity accounts for over 21% of the nation's total.

The push for energy storage emerges as Brazil expands renewable generation and faces growing challenges balancing electricity supply and demand. Recently, Brazilian authorities warned that the increase in wind and solar generation is creating periods of excess electricity supply, especially during hours of strong solar generation and low demand. This is where BESS can help address the imbalance, as it allows to store power during excess hours to be distributed when demand is higher than renewable energy power generation.

Key Takeaways

• ANEEL proposes Brazil's first BESS contract in the transmission segment for April, 2027.
• The government will launch an auction consisting of 3,245 kilometers of new transmission lines and 1,386 MVA of capacity across 13 Brazilian states.
• Industrial Info Resources is tracking two active BESS projects and 373 transmission and distribution projects across Brazil.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).