A study comparing power purchase agreements and solar self-generation in Brazil’s free market finds that direct investment in photovoltaic plants can cut costs by up to 32.9%, with solid returns but higher risk exposure. While regulatory exemptions significantly improve project economics, self-generation remains sensitive to costs, market prices, and policy changes that could affect long-term viability.
Brazil installed 2.3 GW of solar capacity in January and February, as centralized generation more than doubled while distributed growth declined.
Brazil’s National Electric Energy Agency (Aneel) has authorized a 5 MWh battery system co-located with a solar plant, setting a regulatory precedent for integrated storage.
Greener says Brazil imported 17.9 GWp of PV modules in 2025, with distributed generation accounting for 79% of volumes despite a slowdown in installations.
Brazil’s second Long-term Reserve Capacity Auction (LRCAP) of 2026 has contracted 501 MW of thermoelectric capacity, leaving an estimated 3 GW of remaining demand to be addressed in a forthcoming battery storage auction expected later this year.
The Bom Jardim PV complex, a 439 MW solar installation in Icó, Brazil, has begun test operations on four of its 10 plants, with full commercial commissioning expected by December 2027.
Brazil has opened consultations on its PDE 2035 energy plan, which projects 107 GW of solar by 2035 – including 78 GW of distributed generation – with battery storage reaching 7 GW, or 2% of the power mix.
Brazil’s electricity regulator has approved March reserve capacity auctions for thermal and hydro plants with more than 125 GW registered, while guidelines for a separate battery storage auction remain pending even as over 20 GW of projects are under development.
The Brazilian Association of Energy Storage Solutions (ABSAE) predicts that installations in Brazil’s commercial and industrial (C&I) segment should exceed 2 GWh in 2026. In addition, the group expects procurements of approximately 8 GWh in the auction scheduled for April, which will procure projects for delivery from 2028.
Brazil’s long-awaited capacity reserve auction for battery energy storage is scheduled for April 2026, following a year of rulemaking that expanded the expected supply volume and introduced new legal and regulatory constraints.
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