Brazil Energy Battery Storage Auction
Brazil’s federal government will launch its first major battery energy storage system (BESS) tender in April 2026, targeting 2 GW (~8 GWh) of capacity and mobilizing over USD 2 billion in procurement. The auction presents significant opportunities for U.S. suppliers of batteries, smart-grid solutions, and related services.
Market Context
Led by the Ministry of Mines and Energy (MME) under the Capacity Reserve Auction (LRC), the tender will include a dedicated battery-storage product for the first time. The Associação Brasileira de Soluções de Armazenamento de Energia (ABSAE) reports about 18 GW of battery projects ready to register. A 20-day public consultation in November 2025 will finalize the rules. Major Chinese firms—including Huawei, BYD, CATL, Envision, Sungrow, and HyperStrong—have already presented large-scale proposals to the MME.
Opportunities for U.S. Suppliers
Demand will focus on battery modules, PCS, racks, system integration, and EPC services. U.S. companies offering cells, modules, inverters, BESS containers, software, or battery-management systems are well positioned. Partnerships or licensing with Brazilian developers and EPC firms can enhance market access. Advanced chemistries, next-generation storage, and recycling solutions offer competitive differentiation.
Competition and Regulatory Outlook
Auction details will be finalized in November 2025. U.S. suppliers should review local content, certification, and financing conditions, as contracts will be in Brazilian reais. Strong competition is expected from Chinese and other Asian companies; U.S. firms should emphasize technology reliability, international standards compliance, and value-added services.
Strategic Recommendations
Form partnerships with local EPCs, developers, and utilities to strengthen presence and logistics. Engage in the consultation process to understand technical specifications. Highlight technological differentiation, lifecycle services, and integrated solutions that combine hardware, software, and operations.
The upcoming BESS auction represents one of Latin America’s largest emerging storage opportunities. With consultation in November 2025 and auction in April 2026, U.S. firms should act now to position their technologies and partnerships for entry into Brazil’s fast-growing energy-storage market.
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 .