Atlas Renewable eyes up to 500 MW for Brazil battery storage auction

Atlas Renewable Energy is evaluating up to 500 MW of battery energy storage system (BESS) projects for Brazil’s first capacity reserve auction dedicated to battery storage, expected later this year. The company said its final participation will depend on the auction’s final rules, including provisions on remuneration and local content requirements.

Fabio Bortoluzo, president of Atlas Renewable Energy Brazil, said the company has identified projects linked to existing renewable energy assets that could participate in the auction.

The company said capacity payments are essential to making battery storage projects economically viable, but argued the Brazilian market should also compensate projects for avoiding renewable energy curtailment. Under its proposal, batteries co-located with renewable plants would store electricity that would otherwise be curtailed and discharge it later, creating an additional revenue stream while reducing financial losses for generators.

Atlas said it has discussed the proposal with Brazil’s Energy Research Office (EPE), the National System Operator (ONS), and the National Electric Energy Agency (Aneel), and plans to submit it during the public consultation on the auction rules. Bortoluzo said EPE understands the proposal, although technical changes would be required to include it in the first auction.

The company also called for a gradual approach to local content requirements. While supporting Brazil’s industrial policy and financing incentives for domestically manufactured equipment, Atlas said the country’s battery manufacturing sector is not yet competitive enough to match international suppliers, particularly as battery import duties are rising to 25%.

Atlas Renewable Energy also backed EPE’s proposal to increase the financial guarantees required to participate in the auction. The company said stronger guarantees would discourage speculative bids from developers unlikely to build projects, helping to produce more realistic auction prices and demand.

From pv magazine Brazil