Brazil Energy Storage Regulatory Framework
Brazil’s National Electric Energy Agency (ANEEL) has released a comprehensive technical note following Public Consultation No. 39/2023, focusing on refining the regulatory framework for Energy Storage Systems (ESS) within the Brazilian electricity sector. The regulation defines ESS broadly to include standalone battery systems and reversible hydropower plants, emphasizing their role in supporting Brazil’s energy transition by enhancing grid flexibility and renewable integration. It also encourages integration with distributed generation, fostering opportunities for small-scale renewable storage solutions.
The regulatory framework introduces clear authorization processes under the Independent Power Producer regime and establishes rules for grid access contracts and tariff structures that prevent double charging, though direct subsidies are not provided. The document highlights challenges such as the high upfront cost of storage technologies and prioritizes policies to integrate storage with renewables, aiming to reduce curtailment and improve grid reliability. Importantly, the framework allows “stacking” of revenue streams from multiple services like frequency regulation and energy arbitrage.
Looking ahead, ANEEL plans a phased regulatory roadmap through 2025 and beyond, including sandbox initiatives to pilot innovative business models and technologies. This creates a dynamic environment for U.S. companies specializing in battery storage, hydropower solutions, grid-forming technologies, ancillary services, and energy management systems. Collaboration with Brazilian stakeholders, including ANEEL, Electric Power Commercialization Chamber (CCEE), and National Power Gri Operation (ONS), as well as engagement in public consultations, will be critical for market entry and success.
For more information on Brazil’s evolving regulatory framework for Energy Storage Systems and opportunities for U.S. companies, please contact please contact Igly Serafim, Commercial Specialist at the U.S. Consulate in Sao Paulo, Brazil at igly.serafim@trade.gov.