Brazil’s minister of mines and energy discusses battery auction with Chinese companies

Brazil’s minister of mines and energy, Alexandre Silveira, on Friday joined bilateral meetings with Chinese energy companies during an official government mission to Asia which included business in Indonesia and Malaysia.

The minister wants to attract international investment for the first battery auction to be held by the Ministry of Mines and Energy, due this year.

Battery energy storage systems can increase the reliability of the National Interconnected System and bolster the penetration of renewable energy generation, for example from solar and wind power. Batteries can even out periods of excess generation which occur during periods of low demand, as happens during holidays such as Christmas and the new year break.

“We are preparing the first battery auction in Brazil, which will be fundamental to ensure the stability and efficiency of our electrical system,” said Silveira.

Chinese companies including Huawei Digital Power, BYD, CATL, Envision, Sungrow, HyperStrong, and Hithium Energy presented large-scale battery and smart grid technology during the meetings.

Minister Silveira said this year’s battery procurement exercise will be part of Brazil’s Reserve Capacity Auction (LRCAP): a regulatory model which ensures enough electricity is generated to meet demand. This year’s LRCAP will feature a section devoted to energy storage.

The Brazilian Association of Energy Storage Solutions estimates around 18 GW of battery projects are ready to be registered for the auction and claims contracting just 2 GW of them could unlock investment of BRL 10 billion ($1.85 billion).

From pv magazine Brasil.