Brazil Postpones Its First Battery Storage Auction to 2025

Brazil’s inaugural battery storage auction has been rescheduled to the second half of 2025, with preparations in progress under the guidance of Thiago Barral. This auction aims to diversify the energy mix without replacing thermoelectric plants. Further energy-related auctions are planned for 2025, including capacity and transmission line projects.

Brazil’s Ministry of Mines and Energy has postponed its inaugural electricity storage battery auction to the latter half of 2025. Thiago Barral, the ministry’s national secretary for energy transition and planning, confirmed that the auction preparations are nearing completion despite being initially set for June due to the unique nature of this initiative and the timing of related energy sector auctions.

In 2025, the ministry has plans for various other energy-related auctions, including capacity auctions, the A-5 energy auction, bidding for isolated systems, and transmission line projects. Barral emphasized the minister’s commitment to conducting the battery auction this year, following his participation in a seminar on critical minerals at the Brazilian Development Bank’s headquarters in Rio de Janeiro.

According to Mr. Barral, batteries will enhance the diversity of Brazil’s electricity system but are not intended to replace thermoelectric plants. He stated, “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.”

The ministry sought input for the auction parameters through a public consultation conducted between September and October last year. Barral indicated that the feedback is under review as they finalize proposals for submission to Minister Alexandre Silveira, who will then make final decisions regarding the auction.

Furthermore, the ministry is deliberating with the Brazilian Electric Energy Agency (ANEEL) to develop regulations for energy storage solutions within Brazil’s electricity framework. An ordinance specifying the auction’s rules will ultimately be published, although a release date remains unspecified, addressing logistical details such as the location of battery installations, whether near consumers or generation sites.

In summary, Brazil’s first battery storage auction is now anticipated for the second half of 2025, allowing time for thorough preparation and regulatory discussions. As the ministry works to finalize parameters and gather insights from industry stakeholders, the initiative aims to diversify the electricity system and complement existing thermoelectric generation. The commitment to this auction reflects a significant step towards modernizing Brazil’s energy landscape and promoting cost-effective solutions for consumers.

Original Source: valorinternational.globo.com