According to foreign media reports, the Ministry of Mines and Energy of Brazil announced a few days ago that it plans to purchase battery energy storage systems on a large scale in 2025 and publicly solicit opinions for the held capacity reserve auction.

Brazil's Minister of Mining and Energy, Alexandre Silveira, said that in addition to the auction, an auction of thermoelectric facilities and hydropower facilities was also planned idle capacity. He said that the goal of this auction is to promote it in Brazil. Battery Energy Storage system, and attract large battery energy storage manufacturers from China and other countries.

Brazil, as the largest economy in South America, has a large economic aggregate and population base. Electricity charges account for a relatively high proportion of national income, high per capita electricity consumption, low grid coverage and frequent power cuts. With the continuous release of new energy industry demand, Brazil is considered to be the fifth largest optical storage market in the world and the largest optical storage market in South America.

Brazil energy status

in recent years, power outages in Brazil have occurred frequently and have a wide range of impacts, bringing huge inconvenience and economic losses to residents and enterprises. As the country is also affected by drought, resulting in a decrease in hydropower generation, the demand for household and enterprise energy storage systems is rising.

Under this background, renewable energy development projects such as solar energy, wind energy and photovoltaic have received strong support from the Brazilian government.

Government benefits BRICS blessing

starting from this year, Brazil has incorporated battery and energy storage solutions into the energy auction, aiming at ensuring Brazil's energy security in the next six to seven years. The goal of the auction is to promote battery energy storage systems in Brazil, it also attracts large battery energy storage manufacturers from China and other countries.

In addition, under the BRICS cooperation framework, China promotes the establishment of cooperation mechanisms such as new development banks and emergency reserve arrangements. The New Development Bank provides financing for projects such as renewable energy and urban infrastructure in Brazil. Agricultural technology cooperation among BRICS countries has promoted the export of Brazilian agricultural products to China, scientific and technological cooperation has promoted Brazil's innovative development in the fields of artificial intelligence and green growth.

Brazil's resource advantage

85% of the country's electricity comes from renewable energy. Last year, the installed photovoltaic capacity reached 12.4gw and the installed capacity of onshore wind power reached 5.9gw. The continuous growth of new energy installed capacity is pushing forward the expansion of its electrochemical energy storage market.

The development of solar energy in the whole Latin American region, including Brazil, is still in its infancy. Although Brazil is actively developing its local photovoltaic manufacturing industry, its local production capacity is limited and its industrial chain is incomplete, and it still needs to rely on imports, especially import middle and upstream products from China. For a long time, Brazil's energy transformation will be highly dependent on Chinese photovoltaic enterprises.

Brazil has huge energy storage potential

many reasons are driving Brazil's energy storage demand. Some analysts expect that Brazil's lithium ion battery industry will grow at a compound annual growth rate of 20% to 30% by 2030.

Brazil's new power generation reached 11.9gw in 2023, second only to China, the United States and Germany. Photovoltaic power generation increases at a rate of more than 1GW per month. The cumulative installed photovoltaic capacity is close to more than 38GW, an increase of compared with 2022. Photovoltaic solar power generation ranks sixth in the world.