In 2015, then president Dilma Rousseff (PT). The truncated speech, in a speech at the UN, became the subject of jokes. Almost ten years later, storage – not of wind, but of the energy generated by it – became an alternative to ensuring the country’s supply and eventually stopping increases in electricity bills.
The federal government is preparing for June next year the first auction of concessions that include batteries to store not only wind energy, but also solar energy.
Battery energy storage systems already exist in the country, especially in industry and commerce, as an alternative to guarantee supply and save on electricity bills during peak hours. Large-scale projects are more recent.
One of them was implemented in November 2022 at the Registro substation (SP) by the energy transmission company Isa Ceetp. The system uses 30 MW batteries, capable of delivering energy for two hours, and is used during peak consumption hours in the region.
Another example is . Part of the energy generated by diesel plants on the island will be replaced by solar panels and battery storage. Noronha already uses solar energy, but on a smaller scale. The project will be carried out by Neoenergia Pernambuco, which will invest around R$300 million. The new systems are expected to begin operating in 2027.
Another factor that facilitates the movement is that the price of lithium-ion batteries has been falling. According to Bloomberg New Energy Finance, it has fallen by around 82% in the last ten years.
First battery auction is scheduled for June 2025
The expectation is that the storage of wind and solar energy using batteries will expand and enter energy auctions, currently focused on thermoelectric and hydroelectric plants.
The demand entered the government’s radar. In September, the Ministry of Mines and Energy (MME) published an ordinance that begins the public consultation of the draft guidelines for a battery auction in June 2025. It is the first step towards holding the event.
Contracting must take place using the Capacity Reserve Auction model and the winning companies will have a supply period of ten years, starting in July 2029. According to ordinance 812, it will be up to the MME to define the amount to be contracted, based on in studies by the Energy Research Company (EPE) and the National Electric System Operator (ONS).
In other countries there is already talk of technologies capable of storing up to 24 hours of energy or more, using compressed air, flow, gravity and thermal batteries. In Brazil, what is being discussed is equipment with a commitment to delivering four hours of maximum power.
In parallel, the government will hold new auctions to contract reserve capacity for existing generation projects. Three of them (A-1, A-2 and A-3) are scheduled for December 6th. Supply is expected to start in 2025, 2026 and 2027, respectively, and the contracts last two years.
These tenders direct investments to the plants. This way, they are better prepared to increase their capacity when necessary, thus avoiding activating urgent contracts that are much more expensive.
According to Camila Ramos, CEO of the consultancy Clean Energy Latin America (Cela), the technical standards for the notice for the battery auction in June are still in the drafting phase, but it is expected that the choice of auction winners will be based on the combination of the lowest fixed price offered and the capacity to flow generation.
“In practice, the auction offers a model with attractive risk-return. In addition to fixed revenue indexed to inflation and without exposure to price risk, the tender establishes a four-year deadline for project execution. Thus, the winners will be able to choose to arbitrate the best time to purchase the systems, speculating an additional drop in battery prices or accelerating implementation and anticipating fixed revenue”, he says.
Wanted by People’s Gazettethe MME did not respond to the questions sent.
Batteries face opposition from segments that fear competition, says industry
Carlos Augusto Leite Brandão, president of the Brazilian Association of Energy Storage and Quality (Abaque), says that over the last 20 years battery technologies have been improved. But, according to him, the sector faces resistance from segments that fear competition.
“In Brazil we privilege and pay for old technologies. In São Paulo, we went through this, as consumers pay a lot for old poles, wires and transformers. If companies were penalized, they would invest in new technologies to avoid blackouts”, he states.
For him, the issue of using batteries involves market interests and competition. “At this moment, the use of battery power depends on regulations. Cheaper energy will be put into the system, which competes with the cost of thermal and hydroelectric plants. Today the cost [com as baterias] It’s much lower.”
Samir Moura, coordinator of the energy storage technical group at the Brazilian Photovoltaic Solar Energy Association (Absolar), argues that structuring regulations for the use of batteries is an essential point in unlocking the agenda. The adjustment includes everything from taxation on equipment to technical guidance for energy distribution.
“This is not fast. The discussion is slow, it depends on the entire political bureaucracy. Regardless, the government is starting to move. There is a reserve auction, there are specific projects in Noronha”, says Moura.
According to a study by Cela, the Brazilian market for energy storage systems will grow by an average of 12.8% per year until 2040, with an increase of up to 7.2 gigawatts (GW) of installed capacity in the period.
How “wind” storage works
The energy generated in wind farms and photovoltaic panels is sent to the electricity grid simultaneously with production. The issue is that a mismatch between peak production and peak energy demand is common.
The wind, for example, tends to be stronger in the early hours of the morning, when consumption is low. And the sun ends before rush hour, between 6pm and 9pm. In other words, today wind and solar energy are not always useful at the most critical moment and are often even discarded when there is surplus production.
Batteries appear as an option for storing this energy and using it when necessary, eliminating part of the use of hydroelectric and thermoelectric plants. Another point is that managing energy use is important in remote locations, especially where solar energy is installed. off grid (a system disconnected from the electrical grid that produces energy during the day for use at night).
In recent months, the country has faced a drop in reservoir levels due to drought. And if there isn’t enough rain in the coming months, there’s more ahead.
The problem, in the sector’s view, is that it is not enough to supply until the next wet period. Reservoirs need to breathe if the rains delay or even don’t come.
Around 60% of electricity in Brazil is generated by hydroelectric plants. But, when it is necessary to save reservoirs, more thermal plants are activated. This increases the electricity bill, as they depend on fossil fuels and are more expensive to operate.
“Today, energy is being cut because we cannot play on the grid, as the system is congested. The investor loses too. The battery is a way of not wasting money and in a way solving the problem of peak hours”, highlights Moura.
