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With rising energy rates, grid restrictions, and the quest for greater energy autonomy, the Brazilian battery market is expected to grow rapidly, even without a defined legal and regulatory framework. National and global manufacturers are positioning themselves to meet the growing demand and expand local production. In this new pv magazine Brazil special , we present a detailed overview of the energy storage market in Brazil, driven by the quest to overcome rising energy tariffs, grid restrictions, and greater energy autonomy, even without a defined legal and regulatory framework. With the expansion of distributed generation and the challenges of supply reliability, the battery segment is emerging as a key player for the future of the national electricity sector. To map this moment of transition, pv magazine spoke with national and global manufacturers operating in the country. Companies such as BYD, Deye, Dyness, Fox ESS, GoodWe, Growatt, Huawei, Livoltek, Powersafe, SecPower, SolarXP, Sungrow, and UCB Power share their business strategies, local production plans, regulatory positioning, and growth projections. Amid commitments to new technologies, logistical challenges, and increasingly intense competition, the testimonies reveal a sector preparing for a new phase of expansion in Brazil. Expanding local capacity Among the manufacturers with a production presence in Brazil, BYD has maintained a plant in Manaus (AM) since 2017, focusing on LFP batteries for electric buses. Company director Marcello Schneider emphasizes that the factory plays a strategic role in the nationalization of the electromobility chain and reveals plans to expand operations in stationary systems. We are evaluating ways to expand our operations, whether through new products, partnerships, or even future phases of domestic production. Brazilian company SecPower, with almost three decades in the market, is also increasing its local production, currently at 336 MWh/year and with the potential to double that capacity. SecPowers CEO, Gabriella Reigada, emphasizes that we are expanding our manufacturing capacity. Demand growth has been significant since last year. Powersafe, which announced its entry into the renewable energy market in 2024, is present in Minas Gerais, Goiás, and São Paulo. It is currently focused on expanding the renewable energy segment and aims for this area to represent 20% of its revenue by 2026, according to André Ribeiro, operations manager. UCB Power is also investing in local production, with an annual capacity of over 72,000 lithium-ion batteries for energy, in addition to more than 2 million lead-acid batteries and other lines dedicated to cell phones and laptops. The companys product engineering manager, Roberto De Luca, notes that the battery is the engine of the energy transition and will be responsible for the energy security of the national system through greater availability of renewable energy resources. Meanwhile, global manufacturers such as Deye, Growatt, Huawei, Livoltek, SolaX Power, and Sungrow do not yet have established local production, but are conducting studies and developing strategies to meet growing Brazilian demand. Iberê Carneiro, a Livoltek engineer, says the company is already beginning studies to transfer part of its production to the Manaus factory by 2026. Deye plans to begin local production in 2025, according to operations director Caio Lentini. “Growth has been accelerated, and the market is tending to adopt battery-powered systems instead of traditional on-grid systems.” Regulation, tariffs and climate: market catalysts The maturing regulatory framework, such as Portaria Inmetro 140/2022, along with rising energy rates and extreme weather events, has driven the adoption of storage solutions. “Recurring blackouts in Brazil are forcing people to seek reliable solutions to avoid the impacts of constant power interruptions. Batteries are a solution to this problem, ensuring Brazilians energy security and independence,” says SolarX manager Dieny Melo. Robson Meira, country manager at Fox ESS, notes that demand is expected to double by 2026, especially for hybrid and off-grid systems. Were seeing significant growth in the search for storage solutions, he says. Thiago Guimarães, GoodWes sales director, highlights the companys commitment to the agribusiness and commercial sectors. We believe the market will grow significantly from now on. Were launching solutions with backup parallelism and instantaneous power of up to 1 MW. For Silvio Robusti, product manager at Growatt, there is a growing understanding of the benefits that storage can offer, such as backup, optimizing self-consumption, and responding to higher rates at specific times. Schneider reinforces its positive outlook. “Demand for stationary storage solutions is expanding, driven by distributed generation, backup needs, and the quest for energy efficiency.” Dyness country manager Carlos Trotta sees 2024 as a seed year for the market and projects exponential growth through 2030: This is the base year for growth, which will be exponential through 2030. Technological mastery with lithium-ion batteries The widespread adoption of lithium iron phosphate (LiFePO4 or LFP) technology demonstrates the Brazilian markets preference for safer, longer-lasting solutions with good thermal performance, especially in solar energy and electric mobility applications. BYDs Schneider emphasizes that the company works exclusively with lithium-ion batteries, using the Blade Battery in light vehicles and robust LFP versions for heavy-duty vehicles and storage systems. Our vertical model guarantees complete control of the chain, from raw materials to the final system, he states. Meira of FoxESS points to a similar advantage: “We control the entire chain, from mineral extraction to the final product, ensuring traceability and reliability.” For his part, Huaweis Chief Technology Officer, Roberto Valer, emphasizes the technical rigor in selecting cell suppliers, offsetting the fact that Huawei does not directly manufacture this component. We perform more than 100 technical tests to ensure the quality of the cells integrated into our systems. Even companies that do not produce cells invest heavily in critical stages, such as the development of management and integration systems, as is the case with Goodwes Guimarães, which mentions a broad line of products with modular LFP technologies. At Dyness, Trotta highlights advanced safety features, such as the aerosol-based fire suppression system and an intelligent BMS (Battery Management System) that balances cell charging. Deyes Lentini sums up the companys model by saying that they manufacture the BMS and enclosure in-house, using cells from tier 1 manufacturers. This hybrid structure, with partial or total control of the chain, is also followed by companies such as Growatt, SolaX, Livoltek and UCB Power, which is positioned as the first national manufacturer of LFP lithium batteries. The links in the battery segment chain The battery energy storage chain is extensive and still consolidating in Brazil, encompassing everything from the extraction of critical minerals to recycling. BYDs Schneider summarizes the main links: cell production, system assembly, inverter integration, EMS, installation, and operation. He points out that the most common links in the country today are still focused on the final stages, such as marketing and integration, and sees room for local advancement, especially in reuse and recycling protocols. They tend to strengthen in the coming years, he predicts. Companies that operate with greater verticalization highlight advantages in quality and traceability. Meira, of FoxESS, affirms that the company dominates the entire chain, from mining to installation, with strategic support from groups such as REPT Battero and Tsingshan. Trotta, of Dyness, expands the map by citing seven essential links: extraction, component production, cell assembly, integration, marketing, use, and recycling. For him, the role of distributors and installers will be fundamental in this transition, but ongoing training will be essential to mature the sector. Other manufacturers detail their operations in specific parts of the chain. Lentini, from Deye, lists: cell manufacturer, BMS, cabinet, assembler, distributor, and end customer. Guimarães, from Goodwe, speaks of a hybrid model, ranging from cell procurement to working alongside the end customer, with support from integrators and partners on special projects. Valer, from Huawei, emphasizes the offering of complete systems, with modules, containers, substations, and PCS, optimizing commissioning. Ribeiro, from Powersafe, highlights that the company has an environmental program to manage waste throughout the production chain. Companies such as SecPower, SolaX, Livoltek, and UCB Power reinforce the importance of local engineering, technical support, smart integration, and sustainability as competitive differentiators. The BESS as a Service model in Brazil The diversification of applications and the advancement of the BESS as a Service business model have prompted manufacturers to adapt their portfolios in Brazil with modular, scalable solutions geared toward different consumption profiles. To serve everything from residential applications to industrial projects and plants, companies such as Deye, FoxESS, Growatt, and Dyness have expanded their offerings with lithium-iron phosphate (LFP) batteries, configured for low or high voltage and with different expansion capacities. Deyes Lentini explains that modularity is strategic: We have batteries from 2 kWh to 5 MWh, with easy integration, and we already operate in Brazil with the Battery as a Service model, in Pará. In the industrial segment, integrated systems are gaining importance. Meira, from FoxESS, mentions the GMAX, already in operation in an ice cream factory and in rapid vehicle charging stations. Huawei, for its part, signed a partnership with Matrix Energia to facilitate storage projects without direct sales to the end customer. The customer benefits from operational and economic gains, without needing to purchase the system, says Valer. BYDs Schneider also highlights the companys commitment to partnerships with integrators, offering cost predictability and performance as differentiators. Among domestic companies, Powersafe is accelerating its entry into this market with a strategic partner and already has a dedicated credit line with Banco BV for battery projects. We are positioning ourselves as the first manufacturer in Brazil with this financing structure for storage, Ribeiro emphasizes. SecPower is preparing to launch the BESS as a Service model, focusing on accessibility and compatibility with legacy systems. Rather than selling batteries, manufacturers want to offer energy as a service, shaping the market according to new demands. Main drivers for the adoption of storage systems The search for energy security and savings in the face of rising rates and grid instability is one of the main drivers of demand. “Today, storage represents a direct response to the limitations of distribution networks, the rising cost of diesel, and the vulnerability of critical systems such as hospitals, data centers, and industries,” explains Rafael Ribeiro, director of Sungrow. Robusti, of Growatt, points out that “energy autonomy and peak-hour tariff mitigation are major motivators, but technical bottlenecks remain, especially in the training of integrators skilled in sizing and operating these systems.” From a regulatory perspective, the sector sees a new horizon. BYDs Schneider highlights that the modernization of the regulatory framework has boosted grid-connected applications, such as backup systems, demand response, and capacity reserves. Roberto de Luca of UCB Power adds that GDII and the introduction of Fio B make storage more advantageous, particularly given the drop in lithium prices. In the corporate market, applications such as peak shaving, load shifting, and smart backup have taken center stage. “Companies are looking to avoid technical constraints, increase production, and keep critical systems running without relying on the grid,” notes Reigada of SecPower. Guimarães of Goodwe believes energy reliability is the main driver. “Consumers want guaranteed supply, even more than savings.” Meira of FoxESS reinforces this trend with a warning: “Regulatory changes affecting credit compensation and electricity insecurity are making batteries not just an option, but a necessity for many.” The sector hoped that the first battery reserve capacity auction, scheduled for 2025, and other initiatives by the Ministry of Mines and Energy (MME), the National Electric Energy Agency (Aneel), and the Energy Research Company (EPE) would consolidate the technology as a strategic component of national energy planning. However, this scenario remains uncertain due to recent changes in the leadership of Aneel and MME, with the departure of two agents linked to storage policies in the country. The mandate of the director of the regulatory agency, Ricardo Tili, responsible for overseeing the regulatory process for storage systems, recently ended, and the responsibility has not yet been redistributed among the other directors. Director Daniel Danna was appointed to analyze the outcome of Public Consultation 39 in Tilis place. Furthermore, last Friday, the National Secretary for Energy Transition and Planning, Thiago Barral, was removed from his position to assume coordination of the energy area of ??COP30. Gustavo Cerqueira Ataíde, chief of staff to the EPE presidency, was appointed in his place. Opportunities in the electrical sector For BYDs Schneider, batteries will play a strategic role in a scenario of accelerated expansion of solar and wind generation, contributing to system reliability and enabling more flexible operations, similar to those of the free market. Huaweis Valer also highlights the importance of batteries for frequency regulation, voltage control, and support for high renewable penetration, with a focus on microgrid projects and the Capacity Reserve Auction. SecPowers Reigada highlights the growing use by distributors in isolated systems and R&D, with solutions of up to 6 MWh that avoid heavy investments in traditional infrastructure. In addition to applications directly connected to the grid, the industrial sector, agribusiness, and mission-critical markets are emerging as major demanders. “Hospitals, data centers, dairy production, irrigation—they all require stable and continuous power,” lists Guimarães of Goodwe. Ribeiro of Sungrow reinforces that, in addition to demand, there is a structural boost derived from the fall in battery prices, the rise in diesel prices, and regulatory advances. “Storage is increasingly viable and strategic for national energy planning.” The industry mobilizes for clear rules and viable auctions for storage Energy storage regulation and the holding of reserve capacity auctions are key issues for unlocking investment in the sector. Companies with operations in Brazil have actively sought to participate in these discussions through sectoral entities, public consultations, and technical forums. One example is Huawei. According to Valer, the company formally contributed to the public consultation on the auction ordinance and advocates for the adoption of technical requirements that guarantee the safety and efficiency of the systems. He also highlights the institutional commitment to the federal government and the recent visit of the Minister of Mines and Energy to the companys headquarters in China. Many companies have become involved through associations such as the Brazilian Association of Energy Storage Solutions (ABSAE), the Brazilian Association of Technical Standards (ABNT), the Brazilian Photovoltaic Solar Energy Association (ABSOLAR), and the Brazilian Association of Distributed Generation (ABGD), reinforcing the importance of sector coordination. We participate through ABSAE, of which we are a member, in addition to effective and ongoing participation in technical forums and in the development of standards led by ABNT, says Reigada of SecPower. Ribeiro of Powersafe highlights the companys teams presence at the ABSAE Global Summit, which brought together representatives from Brazil and countries such as the United Kingdom, Chile, and Australia. We are aligned with best practices and the execution of the reserve capacity auction. Even companies not yet directly involved in the discussions recognize the importance of getting involved. Dynesss Trotta says the company is closely monitoring the entities and intends to join soon, highlighting the essential role of ABSAE in launching the auctions. BYDs Schneider agrees: We believe a clear and stable regulatory framework is essential to ensure legal certainty and accelerate the adoption of large-scale storage. What the sector expects to make storage viable Regulating the use of batteries in the Brazilian electricity sector is unanimously seen by companies as key to unlocking investment and expanding the role of storage in the system. BYDs Schneider advocates for batteries to be recognized as multifunctional agents, providing services for both generation and consumption, as well as grid support. He also points to the need to ensure predictability and allow technological competition in auctions. For Huaweis Valer, the inclusion of advanced features, such as grid forming technology, is urgent. It is already a reality in mature markets and can prevent blackouts by providing synthetic inertia and supporting system stability. From a tax perspective, several executives warn of obstacles that jeopardize the competitiveness of batteries compared to other sources. Robusti, of Growatt, emphasizes that the high tax burden on imported equipment creates uncertainty and limits business models. Reigada, of SecPower, points out that batteries currently face a higher tax burden than other clean sources, which discourages investment. The return of the tariff-exempt regime, championed by Melo, of SolaX Power, is also considered crucial to expanding access to the technology. Economic viability also depends on adequate compensation for the various services that batteries can provide. Oliveira, of Livoltek, emphasizes the importance of recognizing ancillary services, while Ribeiro, of Sungrow, reinforces: Its essential to compensate for functions such as frequency control, load relief, and rapid response. Lentini, of Deye, concludes by pointing out the political path: The challenge is regulation. We already have solutions; whats missing is government support to scale the sector. |
