Brazil to hold exclusive battery capacity auction in 2025

The government will hold an exclusive auction for battery energy storage systems in 2025. The statement was made by the Minister of the MME (Ministry of Mines and Energy), Alexandre Silveira, on Thursday (12), during a conversation with journalists, after an Enel event. 

“By the end of the year, we will launch the public consultation. We cannot think that we will hold a large battery auction, since the purpose of the battery auction is to boost technology in Brazil, to try to bring Huawei, other large manufacturers, mainly from China and other countries to bring technology to Brazil,” he said.

The use of batteries would make it possible for renewable sources, such as solar and wind, to enter the auction. The minister said that, in the medium term, these intermittent energies will be better stored in batteries and will reduce energy costs.

However, Silveira points out that the biggest challenge for this is planning and that there is no need to run over this medium-term period and burden the consumer's energy bill.

Silveira also stated that the capacity auction will take place in 2024, even though the public consultation was opened in March, and that the deadline for holding the event was in August. The minister stated that analyses on the volume of contracts for the auction are still being carried out.

Capacity auctions have the function of expanding the energy supply and ensuring the continuity of electricity supply to the SIN (National Interconnected System), even in critical periods.

The challenges, according to the minister, are to calculate the demand needed in the auction to define the sources that will deliver the power; there is also no definition about the sources that will be able to participate, the type of fuel that will be used or the date of the event.

“The less the system needs, the less it will cost, in existing thermal plants contracted in the system and planning for new thermal plants,” he said.

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