Brazil’s electricity mix was 88% renewable in 2024, with wind and solar supplying about 24% of total demand, according to new data from state-owned energy agency Empresa de Pesquisa Energetica (EPE).

A national procurement round for energy storage systems, planned in the second half of the year, is at risk of lengthy delay just as the grid operator is being forced to curtail large volumes of excess clean electricity.

The proposed reform of the electricity sector includes the creation of the supplier of last resort, possible flexibility for consumers without contracts and the end of TUST and TUSD discounts for renewable power plants. The plan also imposes a minimum load of 30 MW for self-production by equalization and determines changes in the cost sharing of the sector.

The additions represent marginal growth compared to 2024, according to SolarPower Europe. Last year, the country ranked second in new installations, behind only India (30.7 GW), the United States (50 GW) and China (329 GW). In terms of cumulative capacity through December 2024, the country ranked sixth, with 66.7 GW.

The volume of imported modules was 18% lower than in 2023. After growth in 2024 compared to 2023, installations of large solar plants are expected to face a decline in 2025, with the combination of energy prices close to the floor and worsening curtailment potentially postponing new investments.

Brazil has installed 37.4 GW of distributed solar and 17.6 GW of large-scale PV capacity to date.

The industry will reach the 1 TWh demand milestone in 2024, with China producing more than three-quarters of the batteries sold globally. The concentration of the production chain in the country has led to a fall in costs and a possible technological shift with the focus on LFP batteries. Cooperation between countries can be strategic to diversify the battery production chain and create sustained demand, assesses the International Energy Agency.

This type of generation could become the country’s second largest source of generation by 2029, according to the National Electric System Operator (ONS). Distributors should take a more active role in managing DG systems, which have been associated with centralized generation curtailment events, according to the ONS.

Consultancy Greener has estimated the state of Pará offers the most potential for battery rollout because of its high energy tariff. A report issued by the consultant also highlighted the big savings agribusiness could make by using batteries instead of diesel.

A crippling tax burden; an inability to bank energy arbitrage income; and uncertainty about grid fees, network ancillary payments, and solar-plus-storage eligibility could all affect a procurement exercise planned for June.