Market Intelligence
Renewable Energy Electricity Infrastructure Brazil

Brazil Energy Battery Market

Brazil’s approval of co-located energy storage creates U.S. partnership opportunities in the country’s growing renewable and grid modernization market.

Brazil’s electricity regulator, ANEEL (Agência Nacional de Energia Elétrica), has officially authorized the permitting of co-located energy storage systems (SAEs). This significant policy shift enables renewable energy project developers to integrate storage systems directly at generation sites.

Co-located SAEs are storage systems installed alongside generation plants. These systems can store energy either from the plant itself or directly from the grid and can later inject it back into the system, support internal consumption, or provide grid services. ANEEL’s announcement reflects its strategic commitment to incorporating storage technologies into Brazil’s National Interconnected System (SIN) to improve grid reliability and operational flexibility.

Although the broader regulatory framework for energy storage is still under development, ANEEL’s decision marks an important interim step. A public consultation on comprehensive storage regulation, including contentious issues such as potential double grid charges for energy input and output, remains pending.
In parallel, the Brazilian government is expected to resume the Capacity Reserve Auction (LRCAP) process, with a decree anticipated by the end of 2025, specifically targeting the procurement of energy storage capacity.

This permitting policy was developed in collaboration with the Ministry of Mines and Energy (MME), the National System Operator (ONS), the Energy Research Office (EPE), and other stakeholders. It directly addresses growing concerns from renewable energy developers over curtailment impacts, both operational and financial, and signals the regulator’s view of storage as essential infrastructure for system security.

While final regulations are still forthcoming, this decision signals a more innovation-friendly regulatory environment. For companies active in Brazil’s energy market, particularly in renewables and energy storage, this presents a timely opportunity to align with evolving grid modernization priorities.

 For more information on opportunities for U.S. companies, please contact Igly Serafim Igly.Serafim@trade.gov, Energy Commercial Specialist, U.S. Commercial Service, São Paulo.