The Brazilian power system faces the challenge of meeting growing demand for capacity and flexibility, requiring new regulatory frameworks to integrate batteries and enable the national energy transition.
Brazil’s energy matrix is undergoing an accelerated transition, driven by the massive influx of renewable sources and a constant rise in consumption. However, the National Interconnected System (SIN) faces a critical bottleneck: the need to ensure system flexibility—a vital attribute for managing the intermittency of clean energy and climate variability—which still lacks an adequate market structure for proper remuneration.
According to a recent study by Volt Robotics, the country will need to expand its capacity by 4.5 GW to 6.5 GW by 2028. Industry experts argue that the success of this expansion depends on creating specific policies that value energy storage, particularly through Battery Energy Storage Systems (BESS), to ensure a stable and efficient supply.
The Search for Clear Economic Signals
The debate, which gained momentum during an event hosted by the Brazilian Energy Storage Solutions Association (Absae), centers on how to capture the value these technologies provide. Currently, battery systems deliver systemic benefits that are not being properly priced, discouraging new structural investments in the sector.
“If we have a realistic price for energy and the services we need, energy storage is extremely competitive,” notes Fábio Lima, executive director of Absae.
For the executive, the key lies in separating the attributes of power and flexibility. Currently, the value generated by batteries—which could reduce peak demand and optimize grid usage—remains invisible, preventing the market from reaching its full operational maturity.
Financial Efficiency and Systemic Security
One of the most compelling points raised by Volt Robotics is the financial advantage of batteries compared to traditional thermal power plants. Estimates indicate that contracting BESS could reduce the necessary fixed revenue by 38% to 64% compared to recent capacity reserve auctions. Including operational gains and the reduction of sector charges, the annual economic benefit could reach R$ 6 billion.
Beyond cost savings, batteries emerge as a strategic solution for utilizing wasted energy. About 88% of the charging capacity for storage systems could be supplied by surplus renewable energy and hydropower spilling, preventing energy waste known as curtailment.
Government Points Toward New Guidelines
The Ministry of Mines and Energy (MME) acknowledges the urgency of the issue. The national secretary for Energy Transition, Mariana Espécie, stated that the government is integrating flexibility criteria into long-term energy planning. The expectation is that the next Ten-Year Energy Expansion Plan (PDE) will include significant updates regarding the need for batteries in the system.
The outlook for the coming years is one of gradual but continuous integration of storage systems. With a target of adding approximately 7 GW of battery capacity over the next decade, the success of the operation will ultimately depend on the government’s agility in structuring auctions that recognize and fairly remunerate the flexibility required to keep the SIN resilient against extreme weather events and the modernization of Brazilian consumption.
