Brazilian battery auction order due before June

The ordinance for Brazil’s planned capacity reserve auction for BESS should be published by the end of May, according to minister for mines and energy, Alexandre Silveira.

The minister yesterday confirmed the deadline to journalists during the Energy Leaders Forum event, in Rio de Janeiro.

“I’m going to China now, including to talk to Huawei and many other players that we are in talks with around the world, to attract investment for batteries,” said Silveira.

The minister said the postponed auction of thermal power plant capacity reserve, for the grid, should still take place this year. Silveira said the Ministry of Mines and Energy’s Secretary of Planning and Energy Transition is working to resolve issues raised by legal challenges to the thermal power plant auction, which delayed the procurement exercise. The chief objection questioned a clause which opponents to the proposed tender claim unfairly discriminates against gas-fired power plants.

A new notice for that auction should be published within 60 days, the minister said.

Reform

The minister said the text of a proposal to reform the electricity sector will be sent to president’s office the Casa Civil this month.

“There is a lot of injustice in electricity rates,” said the minister. “We need to rationalize the sector’s costs and address the injustices in the composition of the rate. We will expand the social rate [for low-income households] and simplify the rules. More than 60 million Brazilians will benefit from free consumption of up to 80 kW per month. The true revolution in the electricity sector is about to occur.”

The minister highlighted the importance of efficient energy planning, with a focus on eliminating emergency contracts. Among the measures he mentioned were a reduction of electricity tariffs, to contain inflation; the settlement of debts related to the Covid national bill; and water shortages; in addition to the end of legal disputes he said are compromising the country’s strategic interests.

Silveira also mentioned a planned investment of more than BRL 60 billion ($10.2 billion) into electricity transmission, to create more than 100,000 jobs, include the whole nation in the National Interconnected System grid this year, and reduce the use of diesel in the Amazon.

The minister said Brazil still needs to strengthen national infrastructure for the generation of renewable energy, modernize electricity distribution contracts, and hold new auctions to ensure sufficient power and energy storage capacity. He also pointed to the need to correct electricity tariff distortions that impact the balance of the energy sector.

From pv magazine Brasil.