Brazil to Stage First National Battery Storage Auction in 2025

Brazil’s federal government is preparing to run the country’s first-ever battery storage auction later in 2025, the Ministry of Mines and Energy (MME) has confirmed.

In a statement, energy minister Alexandre Silveira said the new tender would be “crucial” for reinforcing the power system. He described the move as “a historic step toward an even cleaner, safer, and more innovative energy matrix,” highlighting its role in guaranteeing system stability and efficiency.

The auction will be organized under the existing Capacity Reserve Auction (LRCAP) framework, which secures firm capacity for the national grid. For this edition, the LRCAP will include a dedicated product for energy storage systems, formally bringing large-scale batteries into Brazil’s reliability planning for the first time.

As part of preparations, Silveira traveled to Asia this week to court foreign investors and technology partners for the storage push. During the visit, companies including Huawei Digital Power, BYD, CATL, Envision, Sungrow, HyperStrong, and Hithium Energy Storage presented large-scale battery and smart grid solutions, along with potential models for technological cooperation and investment in Brazil.

Regulator Aneel has also signalled it is ready to move. The agency’s director general, Sandoval Feitosa Neto, recently said Aneel can proceed with tenders for storage projects whenever they are included in the sector’s official planning. He noted that seven ad hoc applications for storage concessions are currently under review.

“Regardless of any new legislation from the National Congress, Aneel – together with the National Electric System Operator (ONS), the Energy Research Company (EPE) and the Ministry of Mines and Energy – is prepared to advance the storage agenda,” Feitosa Neto said.

In parallel, a number of developers are already lining up pilot schemes. Companies such as Statkraft, CGN, and Elera Renováveis have announced plans to develop battery energy storage system (BESS) demonstration projects in Brazil, positioning themselves for the emerging market that the 2025 auction is expected to unlock.