Battery auctions attract more than 260 GW of registered projects in Brazil

Brazil’s first battery energy storage system (BESS) capacity auctions have attracted more than 260 GW of registered projects for the first tender and more than 280 GW for the second, according to preliminary data from the Energy Research Office (EPE).

The capacity reserve auctions (LRCAP) are scheduled for Dec. 2 and Dec. 4, with the first tender reserved for projects using domestically manufactured equipment.

The preliminary report shows a strong concentration of proposed projects in Brazil’s Northeast region, which accounts for 71.1% of registered projects. The Southeast region follows with 18.8%.

The regional distribution may reflect the location-based incentive included in the auction rules to prioritize projects in areas considered strategic for the electricity system. In preliminary tests of the methodology, EPE identified the Northeast and northern Minas Gerais as priority areas.

EPE said the modular nature of battery storage projects, combined with the absence of environmental licensing and certification requirements at the registration stage, helped drive the record number of submissions.

The agency said the next qualification phase will be critical for assessing the technical viability of projects, meaning some registered projects may not proceed to the auctions.

Project registration closed on July 31, with the list of qualified projects expected to be published on Nov. 17.

From pv magazine Brazil