Analysis: Battery energy storage in Brazil

We focus on measures implemented to expand Brazil’s market for battery energy storage systems.

Not much in terms of full or mass scale deployment of battery energy storage systems in Brazil has been done. The South American country is one of the many developing countries lagging behind in terms of the rollout of utility-scale battery energy storage systems.

The majority of initiatives deployed so far are in the research and development and piloting phases.

Funding of battery energy storage systems

According to the Lexology, lack of capital and the absence of a strong regulatory framework governing the adoption, usage and management of renewable energies and battery energy storage technologies has resulted in the slow pace of growth of the landscape in Brazil.

However, the lack of adequate funding pushed the country’s energy regulator ANEEL to develop a framework to improve investments towards the sector. In the second quarter of 2016, ANEEL developed a three-year roadmap mandating utility companies to invest 0.4% of their annual revenue towards research and development of battery storage systems.

The framework includes plans to improve research and development of battery energy technologies by local firms, under efforts to promote local businesses by reducing technology imports.

Under the programme, ANEEL requested utility firms to partner with universities and smart grid solution providers in researching, developing and testing of battery energy storage systems.

In addition to the mandated invest in battery storage, some 90 companies highlighted their interest in funding research and development of storage technologies, reported Energy Storage News.

Renewable energy adoption

The research, development and piloting of battery energy storage solutions is expected to help Brazil identify a strategy to grow the energy storage market and improve its renewable energy portfolio, reduce carbon emissions and secure its energy supply.

By 2024, ANEEL has set a target for Brazil to expand its energy generated from wind to 10% of the country’s total energy capacity. At the moment, 7% of Brazil’s energy demand is met by electricity generated from wind whilst 7% is generated using solar, according to Recharge.

Pilot projects deployed so far include a contract signed between Saft and utility Companhia Energetica de Brasilia for the design, testing and installation of backup battery storage systems.

The battery systems will be used as a backup for the utility’s 34 energy distribution substations in Brasilia, reported Electric Light and Power.

The system will provide the utility’s substations with power for about 10 hours in the event of a power cut. This will in turn help improve Companhia Energetica de Brasilia’s customer services to some 990,000 consumers.

Last month, ANEEL pre-approved 23 of 29 proposals for battery energy storage pilots, reported the Business News Americas.

French multinational electric utility company Engie also partnered with Eos Aurora and Northern Power to implement a utility-scale battery energy storage pilot in Tubarao municipality in Brazil.

Under the energy storage pilot, Eos Aurora and Northern Power will construct a 1MW/4MWh energy storage system.

Engie will use the integrated energy storage system, comprising Eos Aurora’s energy storage batteries and Northern Power’s energy storage control system, to store energy generated from the company’s 5MW wind and solar farm.

Philippe Bouchard, vice president of business development at Eos Aurora, said: “As prices continue to decline rapidly with scale, utilities will be empowered to deploy batteries ubiquitously at substations or co-located with generation. [Analysis: Developments within the UK’s battery storage market].


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