SAO PAULO : The Brazilian government plans to include batteries and other forms of energy storage to compete in energy auctions which are set to happen in the first half of 2024, an official from the Mines and Energy Ministry told Reuters.
“We’re on this frontier of decarbonizing systems that are isolated, so we’re seeing several opportunities for (energy)storage,” said Thiago Barral, the ministry’s secretary for energy transition and sustainability.
Operating Brazil’s electricity grid has become more complex, requiring more flexibility, as energy sources with a variable output – such as wind and solar – have gained space in the country’s matrix.
The batteries would help counterbalance the variability of renewable generation stepping in when output from renewable sources is lower. It would also help bring clean energy to the Amazon region, where many in isolated communities rely on diesel generators.
The first major opportunities for this market should come in 2024, with government auctions set to happen in the first half of the year, especially at the so-called power reserve auctions, which provide extra capacity for peak-demand hours.
The ministry has yet to assess how to structure storage products and to determine which technologies can compete in the upcoming auction, Barral said.
It is also evaluating how the “storage” product will be included in the auction, Barral said, adding that one of the ideas is for batteries to be combined with renewable plants, which would supply them with energy.
Another option would be to hire a battery “alone”, with the charging method being the responsibility of the equipment operator.
Barral did not comment on how much power could be contracted in the tender, as this is strategic information and remains confidential until the auction.