Brazil’s first battery storage auction has been rescheduled to the second half of 2025 due to its unique nature and conflicts with other energy auctions. The initiative aims to enhance Brazil’s electricity system without replacing thermoelectric plants. The ministry is finalizing auction parameters based on industry feedback and collaborating with ANEEL for regulatory developments.
Brazil’s Ministry of Mines and Energy is set to hold the nation’s first auction for electricity storage batteries in the second half of 2025, having moved the original date from June. Thiago Barral, the national secretary for energy transition and planning, indicated that the initiative’s unique nature and scheduling conflicts with other energy auctions influenced the delay. Other auctions planned for 2025 include capacity auctions, the A-5 energy auction for isolated systems, and transmission line projects.
Mr. Barral emphasized that batteries will complement but not replace thermoelectric plants within Brazil’s electricity system, stating, “Batteries will in no way replace thermoelectric plants… [they] will help lower costs for consumers in the medium and long term.” To shape the auction’s parameters, the ministry undertook public consultations with industry stakeholders last year. Currently, feedback is being reviewed to finalize proposals before submission to Minister Alexandre Silveira.
The ministry intends to establish an ordinance that defines auction rules, including battery installation locations, which could be close to consumers or generation sites. Additionally, discussions with the Brazilian Electric Energy Agency (ANEEL) are ongoing to develop regulatory frameworks for energy storage solutions in Brazil’s electricity ecosystem.
The auction for battery storage in Brazil is pivotal for diversifying the country’s energy portfolio while complementing existing thermoelectric resources. The process, now targeting a mid-2025 timeline, is in its advanced preparation stages, with regulatory frameworks being shaped. The finalization of auction rules and feedback from industry stakeholders is crucial for achieving an effective and efficient energy storage solution in Brazil.
Original Source: valorinternational.globo.com
