Brazil’s first auction for electricity storage batteries is delayed to the second half of 2025 due to its novel nature and a packed auction schedule. The ministry emphasizes that batteries will complement, not replace, thermoelectric plants. Stakeholder input is being reviewed to finalize auction parameters, with ongoing regulatory discussions with the Brazilian Electric Energy Agency.
Brazil’s Ministry of Mines and Energy is preparing for its inaugural auction for electricity storage batteries, which is now slated for the latter half of 2025, according to Thiago Barral, the national secretary for energy transition and planning. Originally anticipated for June, the auction’s timing was adjusted due to its unprecedented nature and the ministry’s broader scheduling of energy sector auctions.
In addition to the battery auction, the ministry has plans for various energy-related auctions in 2025, which encompass capacity auctions, the A-5 energy auction, bids for isolated systems, and transmission line projects. Mr. Barral emphasized the minister’s commitment, stating, “The minister has publicly committed to holding this battery auction, and we are working to make it happen this year.”
Mr. Barral elaborated on the role of batteries, which he believes will enhance, rather than replace, Brazil’s thermoelectric plants. He remarked, “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 finalize the auction’s framework, the ministry gathered insights from industry stakeholders through a public consultation conducted from September to October of the previous year. Mr. Barral noted that the proposals are currently under review. He stated, “We are in the final phase of refining the proposals before presenting them to Minister Alexandre Silveira so that he can make the final decisions.”
Many companies have expressed interest in the auction, prompting the ministry to dedicate ample time to evaluate the feedback received. Subsequently, an ordinance will be issued to explicate the auction rules. Key aspects such as battery installations’ proximity to consumers and distribution companies or power generation sites will be outlined in this document.
Furthermore, Mr. Barral mentioned ongoing discussions with the Brazilian Electric Energy Agency (ANEEL) regarding advancements in regulations pertaining to energy storage solutions within the national electricity system.
In summary, Brazil’s first battery storage auction has been rescheduled for the second half of 2025, with preparations currently underway. The initiative, which aims to diversify the electricity system, will complement existing thermoelectric plants and not serve as a replacement. The ministry is refining auction proposals based on stakeholder feedback, and regulatory discussions are ongoing to ensure a robust framework for energy storage within the country.
Original Source: valorinternational.globo.com
