| Work Detail |
The estimate is from the Brazilian Association of Energy Storage Solutions. This week, the National Electric Energy Agency (Aneel) will continue the debate on the creation of a regulatory framework for energy storage.
The Brazilian energy storage market is moving towards becoming one of the main pillars of the modernization of the national electricity sector. This was one of the perceptions shared by the Brazilian Association of Energy Storage Solutions (Absae) during the launch of the “1st Panorama of Storage in Brazil”, held last Thursday (5/12) in São Paulo. During the presentation, the organization shared its opinion that storage should become a key player in the electricity sector and attract up to R$47 billion (US$7.7 billion) in investments until 2030.
Energy storage, especially through battery energy storage systems (BESS), is considered the “Swiss Army Knife” of the electricity sector. According to Marcelo Rodrigues, member of the board of directors of Absae and vice president of new business and innovation at UCB Power, these systems offer unprecedented versatility by offering renewable integration, a solution to reverse the flow of energy, support for transmission and distribution, and greater independence for the end consumer.
Absae President Markus Vlasits highlighted the strategic role of storage. “Storage is happening and is one of the key players in the electricity sector. We foresee a potential investment of up to R$47 billion by 2030. This means modernisation, technological innovation and job creation, which are key elements for making the sector more flexible and resilient.”
The importance of auctions to capitalize on investments
In addition to the technical and political challenges, storage is emerging as an anchor technology for the decarbonization of the Amazonian electricity grid, which is still largely dependent on diesel and natural gas. Around R$14 billion is expected to be invested in off-grid solutions capable of transforming isolated communities. In addition, Absae is betting on R$16 billion being injected into in-meter solutions and R$14 billion behind-the-meter solutions, systems that increase energy efficiency and the integration of renewables throughout the country, reducing electricity costs.
The Capacity Reserve Auctions, scheduled to begin in June 2025, promise to boost investment in the adoption of storage, with the possibility of contracting 2 GW per year. For Rodrigues, these auctions are the key to placing Brazil among the world leaders in the use of storage systems.
“The auctions will boost the market, as the sector is already very motivated. Now the hard work will be with the legislature. I think the storage market will continue to be relevant, after all, the modernization and solution for Brazils energy matrix lies in batteries,” says Rodrigues.
Regulatory and tax challenges
The path to market growth involves overcoming regulatory and fiscal hurdles. The lack of a specific regulatory framework for energy storage is one of the main barriers, as it creates uncertainty about tariffs, concession regimes and revenue sources. However, progress has been made, with the inclusion of the storage agenda in the next meeting of the National Electric Energy Agency (Aneel), on December 10, considered a major achievement for the organization, founded just one year and three months ago. The first official standard on the subject is expected to be published in 2025.
On the tax front, the 55% to 70% tax on batteries – currently treated as luxury products – is another obstacle. Vlasits advocates a tax reclassification. “A battery is not a burden, nor a source of energy, as in Chile. According to the executive, “it will probably be treated as a sui generis category, as is already the case in other countries.” Tax equality is essential to make new projects viable.”
Promise of a new era for the electricity sector in 2025
The launch of the Storage Panorama in Brazil marked a major step forward in technical discussions and symbolised the beginning of a new era for the Brazilian electricity sector. With an eye on the regulatory framework, the storage market has the potential to be one of the major drivers of the national energy transition.
With the creation of appropriate public policies, the impact is not limited to clean energy. “It is an investment in jobs, innovation and, above all, in the country’s energy security,” concludes Vlasits. |
