Brazil to Hold its First BESS Auctions in December

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

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Summary

Brazil plans to hold its first two BESS auctions by the end of this year, aiming to improve system reliability and stability. BESS penetration in Brazil has remained limited, while solar and wind projects continue to grow.

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Betting Big on BESS

Brazil recently announced two new battery energy-storage system (BESS) auctions for December 2 and 4, aimed at modernizing the nation's electric system and improving system stability. The December 2 auction will be reserved for BESS projects meeting minimum nationalization requirements, while the December 4 auction will be open to all eligible battery-storage projects.

The projects will need a minimum availability of 30 megawatts (MW) with a continuous operation capacity for at least four hours and a full recharge time of six hours. The BESS systems must have a minimum total efficiency of 85%.

The projects will be connected to the National Interconnected System (SIN), either through their own connection point or by sharing it with other facilities.

The contracts will have a duration of 15 years, with supply beginning August 1, 2028. Project registration will be organized by the Energy Research Company (EPE) between June 15 and July 31; projects will not be required to have a preliminary, installation or operating license for their technical submissions.

The government has yet to define the total volume of storage capacity to be contracted.

Alexandre Silveira, Brazil's Minister of Mines and Energy, welcomed the announcement: "Brazil is taking another decisive step toward modernizing its electricity system. The battery auction will allow for the storage of energy and its delivery when the system needs it most, increasing stability, making better use of renewable sources, and stimulating the national production of strategic equipment for the energy transition."

Industrial Info Resources is tracking one BESS project in Brazil's state of Ceara, totaling US$198 million of investment. Industrial Info Resources offers more information on this in its Global Market Intelligence (GMI) Power Plant and Project databases, where readers can find details--including construction schedules, key contacts and necessary equipment--in a plant profile and a detailed project report.

BESS units capture and store electricity from the grid and renewable sources and discharges it when needed. They can help meet peak demand and manage renewable energy surpluses. These systems are particularly useful for wind and solar projects, whose output varies depending on weather conditions.

Solar and Wind Expansion

Brazil is experiencing a fast expansion in solar and wind technologies to cope with growing demand and diversify its electricity mix. According to the National Operator of the Electric System (ONS), by June, wind capacity in the SIN stood at 34.4 gigawatts (GW) or 13.7% total capacity, and solar capacity reached 20.2 GW or 8%.

According to Industrial Info Resources data, Brazil is home to more than 1,200 solar and wind projects, with an investment value totaling US$486.1 billion. Readers can learn more from a list of plant profiles and a list of detailed project reports.

Additionally, distributed micro and minigeneration (MMGD) capacity, which includes wind and solar, has seen its fastest growth in recent years. In 2021, MMGD accounted for only 8.5 GW of total capacity, while now it accounts for 49.2 GW (or 19.5%) of SIN's total capacity.

The growth represents the increasing decentralization of Brazil's electricity system, but it raises operational challenges because is not managed by the ONS.

Meanwhile, the ONS forecasts solar power capacity to grow to 23.4 GW, wind to 35.9 GW, and MMGD to 69.2 GW by 2030.

Key takeaways

• Brazil will launch its first BESS auctions by December 2026.
• Project must offer at least 30 MW of available power and operate at least four consecutive hours.
• Solar and wind power generation capacity is expected to continue growing through 2030.

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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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).