Energy sector entities debate battery storage cost distribution

Electricity sector associations are advocating for a change in how battery energy storage system (BESS) costs are handled within capacity reserves. Currently, these costs are borne exclusively by generators, whereas other capacity reserve costs are distributed among all end users.

Industry entities argue that this creates a misalignment between the systemic nature of the service and its legal cost parameters. They contend that battery storage can reduce energy price volatility and the need for thermal power plants, potentially saving consumers over R$ 1.6 billion annually. The associations warn that forcing generators to bear these costs will ultimately lead to price increases for end consumers and reduced industrial competitiveness as costs are passed through the supply chain.

In a separate development regarding energy infrastructure, the government has launched auctions for surplus capacity and autonomous storage, offering 300 MVA and 750 MVA respectively. These auctions aim to mobilize investment in renewable production paired with storage and standalone battery facilities to increase grid flexibility and reduce reliance on natural gas.