Last May 15tho Financial Times published a report that should guide any serious debate about energy in Brazil: the dawn of solar energy 24 hours a day. According to Irena’s general director, Francesco La Camera, the issue of the intermittency of renewables — an argument historically used to defend fossil fuels — has finally been overcome. The cause: the dramatic drop in battery costs (BESS). Since 2022, the cost of utility installations has fallen by more than 50%with a reduction of 27% in the last year alone, according to BloombergNEF.
Meanwhile, in Brazil, the energy storage debate has faced increasing resistance — in articles, videos and public demonstrations — which insists on presenting batteries as a risky or inappropriate technology for the national electrical system. The problem is when prudence disguises itself as technical caution to cover up structural resistance to change — especially when the arguments are systematically aligned with the interests of sectors that profit from the continuation of fossil fuels.
Batteries are not experimental technology. The world’s largest solar-plus-storage project is under construction in Abu Dhabi: 5 GW of solar panels integrated with batteries, providing 1 GW of steady power, 24 hours a dayat an estimated cost of US$70/MWh — competitive with new gas plants, which according to Lazard bank cost between US$48 and US$109/MWh. In Australia, Fortescue is building a 100% fossil-free system for iron mining, scheduled for completion in 2028. According to Irena, renewables with storage already provide energy for more than 95% of the time, at competitive costs, in countries such as China, India and Brazil.
The Brazilian electrical system has characteristics that make BESS not only useful, but strategic. The explosive growth of solar and wind generation has created a growing “curtailment” problem — cutting renewable generation due to lack of absorption capacity. Batteries solve this: they store the day’s surplus and inject it into the grid between 6pm and 9pm, when demand is maximum and solar generation is zero. Furthermore, each MW of battery can avoid building additional MWs of generation and transmission that sit idle 20 hours a day — without emitting CO₂ and without depending on imported fuel subject to geopolitical turbulence.
If batteries are a mature technology, with proven benefits, why is Brazil advancing so slowly? The answer lies in the regulatory and tax environment. There are relevant uncertainties about how the batteries will be charged for use of the electricity grid — an issue that directly affects the viability of the projects and which Aneel is still analyzing. And the tax burden on storage equipment can reach 70% of the asset value. Seventy percent. For equipment that reduces emissions, increases system efficiency and enables the integration of renewables, this level of taxation has no economic or environmental logic.
There is also a concrete fact that is often ignored: in Brazil, hybrid plants with BESS already provide energy in remote regions — rural communities and “off-grid” agro-industrial operations — with less than half the cost of a diesel generator operating 10 hours a day. And this with the current tax burden of up to 70%. Imagine what would be possible with tax equality with other renewable sources. The transformation potential for the interior of Brazil is immeasurable.
It’s true that batteries are not a “silver bullet” — no technology is. But using the limitations of any solution to defend the permanence of the problem is a mistake that does not stand up to scrutiny. Thermoelectric plants are not perfect either: they are expensive, pollute, depend on imported fuel and operate with very low capacity factors in the Brazilian system.
The argument that Brazil should advance slowly because the system has strong hydrological variability and increasing renewable intermittency is, in fact, the opposite argument: it is exactly because of these characteristics that BESS is essential. A system with high variability needs flexibility — and flexibility, today, has a name: battery storage.
The competition, as La Camera told the FT, is no longer between fossils and renewables. It’s between those who advance the fastest. Brazil has sun, wind, and an enviable electrical matrix as a starting point. What we lack is regulatory clarity, tax justice and courage to make decisions that put the interests of the electricity system above interests that seek to delay the transition. . Missing this window would be a mistake that future generations will not forgive us for. The batteries have already arrived. The world already knows this. It’s time for Brazil to know too.
*Sergio Jacobsen is CEO yes Micropowerfounder and advisor at Asabe, vice president of storage at Absolar.
Articles published by CNN Infra seek to stimulate debate, reflection and shed light on views on the main challenges, problems and solutions faced by Brazil and other countries around the world. The texts published in this space do not necessarily reflect the opinion of CNN Brasil.
