Brazil’s first auction for electricity storage batteries is now scheduled for the second half of 2025, pushed back from June due to its unprecedented nature and scheduling conflicts. The initiative aims to diversify Brazil’s electricity system, complementing thermoelectric plants. A public consultation has informed auction parameters, and details will be outlined in a forthcoming ordinance.
Brazil’s Ministry of Mines and Energy is set to conduct its inaugural auction for electricity storage batteries in the latter half of 2025, a change from the initial plan for June. Thiago Barral, the ministry’s national secretary for energy transition and planning, explained that the novel nature of the auction and the broader energy sector schedule necessitated this adjustment. Other energy auctions are also planned for 2025, including capacity auctions and the A-5 energy auction.
Barral assured that the Minister is committed to this battery auction, stating, “The minister has publicly committed to holding this battery auction, and we are working to make it happen this year.” This statement followed his participation in a seminar focusing on critical minerals at the Brazilian Development Bank’s headquarters.
The integration of batteries is intended to diversify Brazil’s electricity network; however, Barral clarified that they will not replace 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 parameters, the ministry engaged stakeholders through a public consultation from September to October of last year. Mr. Barral indicated this feedback is currently under review, and the ministry plans to present the final proposals to Minister Alexandre Silveira for approval. He mentioned significant interest from private companies, emphasizing the thorough evaluation of input before establishing auction rules.
An ordinance will detail crucial auction elements, such as the location for battery installations—whether near consumers, distribution companies, or generation sites. Furthermore, discussions are ongoing with the Brazilian Electric Energy Agency (ANEEL) regarding regulatory advancements for energy storage solutions in Brazil’s electricity framework.
In summary, Brazil’s inaugural battery storage auction has been postponed to the second half of 2025, reflecting necessary adjustments in response to the initiative’s uniqueness. While intended to diversify the energy sector without displacing thermoelectric capacity, the auction aims to reduce consumer costs over time. The Ministry is collaborating with industry partners and government agencies to finalize the framework and regulations governing this significant step forward in Brazil’s energy transition.
Original Source: valorinternational.globo.com
