Brazil to launch large-scale energy storage auction in 2025

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From pv magazine Brazil

Brazil's Ministry of Mines and Energy has announced plans to open a public consultation for a capacity reserve auction focused solely on battery storage, set for 2025.

Energy Minister Alexandre Silveira stated that, alongside this auction, the government also plans to hold a previously scheduled auction in 2024 for reserve capacity from thermal and hydroelectric sources. He said that the goal of the battery auction is to promote battery technology in Brazil and attract large manufacturers like Huawei from China and other nations.

Silveira noted the importance of using batteries to support intermittent energy sources, such as wind and solar, without rushing the process or overburdening consumers. He said that the government's priority is reducing energy costs and ensuring energy security, despite pressure to speed up projects.

The minister claimed that Brazil has sufficient contracted energy to meet demand, even during severe droughts. He highlighted the activation of thermal power plants to offset the reduced hydroelectric generation.

“We have enough contracted energy,” Silveira said, noting that future auctions aim to guarantee energy security for the next six to seven years.

Silveira added that Brazil’s energy demand is rising due to climate effects, indicating the need to double the country’s thermal power capacity by 2031. He also requested a contingency plan to maintain system stability during the summer months

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