Brazil’s UCB Power prepares battery-as-a-service solution

Expansion of factories in Manaus and Extrema will strengthen UCB’s battery energy storage system (BESS) manufacturing strategy and will enable the company to offer rental of its equipment.
Image: UCB Power

Energy storage company UCB Power recently announced it had raised BRL 150 million ($24.8 million) from the Inter-American Development Bank to expand activity at its factories in Manaus and Extrema.

pv magazine Brasil asked UCB chief executive Ronaldo Gerdes about the investment, which is aimed at manufacturing BESS and offering batteries-as-a-service (BaaS) in the country, via long-term rental of equipment.

UCB’s acquisition of EP Telecom, in 2024, enabled it to offer incorporate theft and robbery protection solutions into equipment that might now be leased to customers for up to 15 years.

Ronaldo Gerdes, chief executive of UCB Power. Image: UCB Power

“We want to offer this option to our customers so that they have a secure installation over time, without any vandalism or theft,” said Gerdes. “That’s why we acquired a solution that we call USafety, designed for battery security. UCB has a strategic plan to organize itself for the maturity of the BaaS market by 2025.”

The Manaus plant stands out for its production of stationary lithium batteries, a segment that is experiencing exponential growth in Brazil due to its technological advantages over lead batteries. The Extrema plant has a more logistical approach and is preparing to offer the integration of large-scale energy storage systems.

BESS potential

UCB is investing big in large-scale BESS. Gerdes said related solutions include software, peripherals, and components of which up to half can be manufactured in Brazil.

The executive highlighted the ordinance issued by the Ministry of Industry and Trade Development and the Ministry of Science, Technology and Innovation that established a “basic production process” (PPB): a basis for eligibility for tax benefits which included a rule for local content. Under the PPB, factories can import components in their first year but must then incorporate local production.

“That is why we have worked very hard to make the BESS battery a competitive advantage to meet the PPB’s demand, since nationalization of this product was necessary,” said the chief executive. “Only the cell is imported; all other components are Brazilian. We see this as a major competitive advantage since we have invested significantly in the manufacturing process and training of specialized personnel, benefiting the local industry.”

Wider energy access

Under government programs such as Luz Para Todos (Light for All), UCB has provided more than 60,000 energy systems to isolated communities.

“Initially, Luz Para Todos was not proven to be efficient because it used lead technology,” said Gerdes. “In the Amazon rainforest, lead is subject to severe weather conditions and loses efficiency due to its low durability. With the advent of the lithium solution, we were able to prove its efficiency and we have systems operating for over five years without performance problems.”

Such remote installations reduce energy costs in the communities concerned as well as providing a more sustainable alternative to diesel generators which can operate up to 23 hours per day.

Another growing segment for UCB is mobility. Lithium-ion technology is being adapted to serve both two- and four-wheeled vehicles, consolidating the company’s diversified portfolio.

“Our goal is to create solutions that truly integrate technology, sustainability, and social impact,” said the UCB boss. “Lithium batteries require an expert team to integrate solutions and we have the advantage of having highly qualified people to assemble the energy storage solution. Our national solution reaches the customer already engineered, from manufacturing to installation and integration.”

The solar sector is already showing interest in replacing lead batteries with lithium-ion products and UCB is betting on that becoming mainstream, “especially in the telecom segment, where most still have backup solutions that use lead technology,” said Gerdes. The chief executive added, “Diesel generators can also be replaced by energy storage systems. Opting for more sustainable and long-lasting backup solutions is a major trend, especially in isolated systems such as in the Amazon. This is a vertical that UCB has been working on in line with incentive policies to reduce diesel subsidies.”

Unlocking the storage market in Brazil

On January 29th, at 10 am, in a webinar held by pv magazine Brasil, TBEA will show how batteries are key tools to decarbonize, modernize and make the Brazilian electrical system more flexible. Sign up here!

From pv magazine Brasil.

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