Batteries need a market, not a subsidy

For Pedro Rodrigues, from CBIE, storage is an important piece, but it does not replace firm energy generation

O Poder360in partnership with CBIE (Brazilian Infrastructure Center), launches this Saturday (June 20, 2026) another episode of the program Infra in 1 Minute. Oil and gas specialist Pedro Rodrigues, partner at CBIE, analyzes the 1st battery auction in Brazil and the challenges for integrating storage systems into the country’s electrical matrix without dependence on subsidies.

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In the 167th episode of Infra in 1 minute, Pedro Rodrigues considers that, even if the excitement about the event is fair, since storage was a missing piece in the Brazilian matrix, caution is needed to not turn expectations into illusion. The expert explains that batteries have a practical limit. They deliver power for a few hours and require recharging through a generating source.

“The more batteries we install, the more generation we need behind them”says the CBIE partner. To illustrate the scenario, he cites the case of the United States. In 2025, the country recorded the biggest year of storage in history, with almost 60 GWh (gigawatt-hours) built. However, the volume represents only 2% of the entire generation of the North American installed capacity.

The expert argues that the battery was not designed to replace energy generation, but to enhance existing capacity. In this sense, he points out that the debate in Brazil still leaves something to be desired when it comes to creating a real market for technology.

Today, according to Rodrigues, consumers who have solar generation have no incentive to save the energy produced during the day for use at night, as the tariff charged is the same at any time. The solution would involve adopting the so-called hourly price, in which energy would be cheaper when the sun is shining and more expensive during peak demand.

“With an hourly price, storing is no longer an obligation of ordinance and becomes an economic choice. It is the market giving the signal that no subsidy can give”says the expert.

For him, the financial incentive dictated by the dynamics of supply and demand is what will guarantee the viability of the system in the long term. “The battery does not replace the solid generation. And what shows the right time to use it is not the decree, it is the price”concludes Pedro Rodrigues.

Read posts about other episodes of the program Infra in 1 minute:

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