Brazil falls short of its battery storage potential, expected to reach 1 GW in 2026

Battery storage is a consolidated technology globally, with volumes that already exceed the installed capacity of pumped hydro. However, while the world is expected to install around 300 GW of storage by 2026, Brazil is only expected to surpass the 1 GW mark.

The technology’s role in modernizing electrical systems was debated at a recent webinar organized by the Brazilian Association of Energy Storage Solutions (Absae). The discussion arrives as expectation mounts for a dedicated storage auction in Brazil, alongside ongoing debates regarding the planned contracting of 16.5 GW of thermal plants to provide system capacity.

Fábio Lima, executive director of Absae, highlighted the need for a nuanced approach to grid planning.

“The debate is not BESS versus thermal plants, nor renewables versus energy security. The question is what is the best combination of security, price, ‘renewability’, and flexibility. And to that question, BESS is certainly part of the answer.”

Lima noted that BESS allows for the shifting of renewable generation to times of higher demand, deferring investments in grid reinforcements and facilitating the integration of new loads.

Meanwhile, Absae President Markus Vlasits stated that while BESS represents the lowest-cost global solution for various grid challenges, the Brazilian market is advancing at a slow pace. Despite the growth of behind-the-meter systems, Vlasits considers the 1 GW volume to be far below the country’s potential.

“We need price signaling, specific contracting, and the publication of the regulatory framework. Meanwhile, the behind-the-meter market continues to advance and help alleviate the system load.”

The Chilean example: ancillary services and curtailment

Atlas Renewable Energy provided a regional blueprint for storage integration, presenting its experience operating a 200 MW/800 MWh storage system paired with the 244 MWp Sol del Desierto solar plant in Chile.

According to Fabio Bortoluzo, Atlas’s country manager, the Chilean grid operator recorded an availability of over 98% when it activated the asset for ancillary services like primary and secondary frequency control. BESS significantly reduced the energy price spread at the Sol del Desierto project and decreased solar curtailment. Chile currently has 8 GW of BESS under deployment, including an additional 800 MW planned by Atlas.

Grid forming and network reinforcement

The National Electric System Operator (ONS) in Brazil has already established technical requirements for systems providing synthetic inertia to simulate the behavior of synchronous machines. Huawei CTO Roberto Valer noted that systems with grid-forming technology can operate either connected to the grid or isolated, offering critical features such as black start and inertia support.

Citing a case in the United Kingdom where wind farms tripped offline following a storm, Valer noted how crucial BESS intervention was for frequency regulation. “If there had been grid forming, the recovery would have been even faster,” he said.

In Brazil, storage is already proving its worth as a grid reinforcement tool. ISA Energia Brasil’s expansion and studies manager, Renato Guimarães, highlighted a BESS installation at the Registro substation—considered the first large-scale system in the country. The project replaced a traditional diesel generation solution and successfully avoided manual load shedding on the São Paulo coast during summer demand peaks.

Looking ahead to future utility-scale deployments, Guimarães sees this as a blueprint for the country. “Capacity reserve BESS will perform systemic peak shaving, rather than local, as occurred in Registro. This shows, in practice, how storage solves power issues,” he said.

Federal energy planners are taking note. The Energy Research Office (EPE) has identified storage as the most viable solution for infrastructure expansion in certain isolated regions of the country, proposing a 100 MW/200 MWh grid-forming system to be contracted in an upcoming 2027 auction.