Brazil’s First Battery Storage Auction Scheduled for Late 2025

Brazil’s Ministry of Mines and Energy will hold its inaugural battery storage auction in the second half of 2025. The auction was postponed from June due to its unprecedented nature and scheduling conflicts. The initiative aims to diversify the electricity system while complementing thermoelectric plants, with ongoing public consultations and regulatory discussions with ANEEL.

Brazil’s Ministry of Mines and Energy is preparing to hold its inaugural auction for electricity storage batteries in the latter half of 2025, as disclosed by Thiago Barral, the national secretary for energy transition and planning. Originally scheduled for June, the auction has been postponed due to its unprecedented nature and the packed schedule of energy sector auctions.

In addition to the battery auction, the ministry intends to conduct various energy-related auctions, including capacity auctions and the A-5 energy auction, as well as bidding for isolated systems and transmission line projects throughout 2025. Mr. Barral emphasized that a commitment has been made by the minister to ensure the battery auction takes place within the year.

Mr. Barral clarified that while batteries will help diversify Brazil’s electricity system, they will not serve as a replacement for thermoelectric plants. He stated that “Batteries will in no way replace thermoelectric plants. They serve as a diversification and a complementary resource that, in our view, will help lower costs for consumers in the medium and long term.”

The ministry is currently refining the parameters for the auction based on feedback collected during a public consultation held from September to October of the previous year. Mr. Barral indicated that this feedback is undergoing a detailed review before presenting the proposals to Minister Alexandre Silveira for final decision-making.

Furthermore, Mr. Barral mentioned the ministry’s ongoing discussions with the Brazilian Electric Energy Agency (ANEEL) to enhance regulations regarding energy storage solutions within Brazil’s electricity framework. An ordinance outlining the auction rules will be published, detailing critical aspects such as the location of battery installations relative to consumers and generation sites.

This article was translated from Valor Econômico using an artificial intelligence tool under the supervision of the Valor International editorial team to maintain accuracy and clarity.

Brazil’s first battery storage auction has been rescheduled to the latter half of 2025 due to its novelty and a busy auction calendar. This auction aims to diversify the electricity system without replacing existing thermoelectric plants. Input from public consultations is being meticulously reviewed, and regulatory advancements are underway with ANEEL to clarify energy storage solutions.

Original Source: valorinternational.globo.com