The Brazilian electricity storage market could attract more than R$44 billion in investments by the end of 2030, according to projections released by ABSAE (Brazilian Association of Energy Storage Solutions).
On Thursday night (05), the entity presented this and other data that make up the 1st Brazilian Energy Storage , in São Paulo (SP).
The expectation is that of these R$44 billion, around R$14 billion will be capitalized through off-grid solutions to be installed in isolated communities, especially in the Amazon region.
In this application model, the entity also expects large contributions in technologies aimed at serving private consumers and government electrification programs.
Another R$14 billion should be invested in solutions behind-the-meter through bilateral contracts with consumers, aiming to reduce electricity costs; and meeting demand response contracting requirements to the growth of renewable sources such as solar and wind energy.
The term “behind-the-meter” refers to energy-related activities occurring on the consumer side, typically on or near their premises, involving energy generation, consumption, storage and management using various distributed energy resources (DERs) located on-site.
These resources can include solar s, wind turbines, batteries, fuel cells, and even small-scale cogeneration systems.
In addition, the entity is betting that another R$16 billion could be injected into solutions in-front-of-the-meter, which refers to energy-related activities that occur on the utility side of the grid, typically involving large-scale power generation, transmission, and distribution infrastructure.
These activities are primarily managed by utility companies and are designed to meet the energy demand of a wide range of consumers.
In this case, the investments planned until 2030 would come mainly through public auctions of Capacity Reserve, aimed at ing the growth of renewable sources.
What needs to happen for these investments to occur?
Creation of the Storage Regulatory Framework
According to ABSAE, for the more than R$44 billion to be invested by 2030 to come to fruition, some incentive policies are needed. BESS occur in Brazil over the next few years, the main one being the creation of a Regulatory Framework for Storage.
This would be important not only to define the operational guidelines for this market in the country, but also to offer clearer rules and greater security for investors.
In the association's understanding, the lack of a regulatory framework is the sector's greatest uncertainty, raising doubts about system usage fees, concession regimes and sources of revenue.
“Advances in the tariff structure and greater consumer participation, such as demand response programs, would be a decisive step towards consolidating the multiple applications of storage in Brazil,” explained Markus Vlasits, president of ABSAE.
The association also revealed during the meeting that next Tuesday (10) the ANEEL (National Electric Energy Agency) will continue discussions on the creation of this regulatory framework.
“A ANEEL assured that the first standard on the subject will be published in 2025. On the 10th, the results of the public consultation on the subject will be presented. From that date on, we can count on concrete information on the creation of the Energy Storage Regulation”, explained Marcelo Rodrigues, ABSAE advisor and vice president of new business and innovation at UCB Power.
Improving fiscal and tax policies
According to Vlasits, another point that deserves attention for better operationalization of the energy storage market in the country is the redefinition of a better fiscal and tax policy.
“The storage system is a capital asset with a long useful life. However, our current taxation is not linked to a capital asset, but rather to a luxury product, with tax rates ranging from 55% to 70%. This ends up making many projects unfeasible,” he said.
Despite considering that “at this political moment, talking about reducing tax rates is quite challenging”, the president of the association highlights that progress in negotiations related to this issue is already taking place.
Capacity Reservation Auctions with storage
Another important issue would be the holding of Capacity Reserve Auctions and isolated systems as storage solutions. The inclusion of these systems in the Brazilian electricity grid has been highlighted in discussions on planning in the electricity sector in recent years.
With this new development, ABSAE estimates that the country would have the potential to leverage the storage production chain, with the contracting of 2 GW per year – which would place Brazil among the ten largest s of these systems.
On September 29, the MME (Ministry of Mines and Energy (MME) opened the Public Consultation No. 176/2024, which presents for discussion with society the preliminary draft for holding this auction with battery storage systems included for the first time in history. The public consultation suggests holding the auction in June 2025.
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