Brazil has postponed its first battery storage auction to the second half of 2025 due to its unique nature and the energy sector’s auction schedule. The ministry aims to diversify energy sources using batteries, while not replacing thermoelectric plants, and is refining auction details based on industry consultations.
The Brazilian Ministry of Mines and Energy has announced that its inaugural auction for electricity storage batteries is now scheduled for the second half of 2025, rather than June as originally planned. Thiago Barral, the national secretary for energy transition and planning, noted that the unprecedented nature of this initiative, along with other energy sector auctions, necessitated this delay.
Additionally, the ministry intends to conduct various energy-related auctions in 2025, including capacity auctions and the A-5 energy auction, among others. Mr. Barral affirmed the minister’s commitment to launching this battery auction, emphasizing ongoing efforts to ensure its execution this year.
Mr. Barral explained that while batteries are intended to diversify Brazil’s electricity supply, they are not a replacement for thermoelectric plants. He stated that “Batteries will in no way replace thermoelectric plants. They serve as a diversification and a complementary resource that, in our view, will help lower costs for consumers in the medium and long term.”
To shape the auction parameters, the ministry sought input from industry stakeholders through a public consultation conducted last September and October. Mr. Barral indicated that their proposals are now under review, with the aim of refining them before being presented to Minister Alexandre Silveira for final decisions.
Furthermore, the ministry is engaged in discussions with the Brazilian Electric Energy Agency (ANEEL) to establish regulatory frameworks for energy storage solutions within Brazil’s electricity grid. The specific guidelines for the auction will be disclosed through a published ordinance, although no date has been set for its release, which will clarify whether battery installations will be consumer-adjacent or located near generation sites.
In conclusion, Brazil’s first battery storage auction has been postponed to the latter half of 2025 to accommodate its unique nature and other energy initiatives. The ministry emphasizes the importance of batteries in diversifying energy sources while maintaining thermoelectric plants. Ongoing consultations with industry leaders aim to refine auction proposals, and regulatory discussions with ANEEL will further facilitate the integration of energy storage solutions into Brazil’s electric grid.
Original Source: valorinternational.globo.com
