Brazil debates regulation and funding for battery energy storage

The Brazilian electricity sector is addressing the regulation and financing of large-scale battery energy storage systems (BESS). The 6th Energy Storage Brasil event in São Paulo will bring together manufacturers, financial institutions, and regulators to discuss the economic viability and technical integration of batteries into the grid, driven by the growth of renewable energy and data centers.

Concurrently, technical staff at the National Electric Energy Agency (Aneel) have proposed a cost-sharing model for battery storage. The proposal suggests that all electricity generators, including hydroelectric and thermoelectric plants, should contribute to the costs. Under this model, payments would be tiered based on a plant's flexibility: inflexible plants would pay the full amount, while those with very high flexibility would pay only 25%. While intended to distribute costs and encourage operational flexibility, the proposal has faced pushback from the thermoelectric sector, which has indicated the possibility of legal challenges.