Will Brazil's first capacity reserve auction affect battery energy storage?

Changes to Brazil’s first capacity reserve auction of 2025 could undermine the expansion of the procurement regime to include battery energy storage systems (BESS) in the second exercise of the year, according to Markus Vlasits, chairman of Brazil’s energy storage trade body.

Will changes to Brazil's first capacity reserve auction undermine Bess?

Changes to Brazil's first capacity reserve auction of 2025 could undermine the expansion of the procurement regime to include battery energy storage systems (BESS) in the second exercise of the year, according to Markus Vlasits, chairman of Brazil's energy storage trade body.

Why is energy storage so popular in Brazil?

So far, energy storage has been mostly used for small-scale off-grid applications, however, things are about to change. Brazilian customers, like those in other countries, are taking advantage of the increasing competitiveness of energy storage equipment, which is mainly due to rapidly falling battery prices.

Does Brazil have a good energy transition?

On the one hand, Brazil’s energy transition is well under way. The country has the cleanest electricity generation among Group of 20 members and has seen a significant increase in wind and solar generation in the past few years. Energy storage is expected to take off soon.

How much solar power does Brazil need?

Brazil’s 35 GW of distributed generation capacity – mostly solar arrays – already meet around 28% of the demand of the National Interconnected System (SIN) grid, which encompasses almost all of the nation’s grid electricity users.

Can Brazil build a green-steel industry?

Brazil’s biomass availability could help build out the country’s green-steel industry as clean hydrogen developers grapple with high costs and low demand. And Brazil is one of the world’s top sources for critical energy transition metals.