Problems with Brazil’s planned battery auction

A crippling tax burden; an inability to bank energy arbitrage income; and uncertainty about grid fees, network ancillary payments, and solar-plus-storage eligibility could all affect a procurement exercise planned for June.

From ESS News

With Brazil’s Ministry of Mines and Energy asking for feedback about how it should structure procurement of battery energy storage system (BESS) capacity, regulatory uncertainty could deter investors.

The ministry is planning a battery-dedicated grid capacity reserve auction in June, and has held a public consultation exercise.

Matheus Dias, senior research associate at UK-based analyst Aurora Energy Research, said, “Regulatory uncertainties, combined with a tax burden that represents 25% of battery capex [capital expenditure], increase project costs, which end up being passed on to consumers.”

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