Brazil's renewable surge fails to ensure electricity grid security

The Energy Research Company (EPE) released the 2026 Synthesised National Energy Balance, using 2025 data, showing Brazil’s electricity matrix reached 86.8% renewable share, with renewables accounting for about 50% of total generation. Wind power grew 8.2%, solar photovoltaics 24.7%, while hydroelectric output fell, and thermal generation rose 12.3%.

Despite the high renewable penetration, the report warns that operating an intermittent clean‑energy system does not automatically guarantee grid stability. Lawyer Flávio Telles highlighted the need for storage solutions to mitigate intermittency. The Ministry of Mines and Energy has set new rules for Capacity Reserve Auctions focused on battery storage (LRCAP 2026), scheduled for 2–4 December, aiming to reduce reliance on traditional reserve auctions.

Energy Minister Alexandre Silveira said the battery auctions “unite energy security, the energy transition and industrial policy,” and will help modernise Brazil’s power system by storing surplus energy for periods of high demand. Final electricity consumption rose 2.7% in 2025, driven by industry, residential and commercial sectors.