Brazil energy storage market poised to accelerate in 2026 BNAmericas analysis finds
Brazil’s battery energy storage (BESS) market is set to accelerate from 2026 as new regulation, a first-of-its-kind capacity reserve auction, and grid reliability needs unlock large-scale deployment.
Brazil’s energy storage market (battery energy storage systems, or BESS) is expected to gain traction starting in 2026, driven by regulatory developments, the launch of the country’s first auction dedicated to the sector, and the growing need to stabilize and add flexibility to the national power system. An article published by BNamericas highlights this analysis and features insights from partner Débora Yanasse of the Energy practice.
According to the report, the capacity reserve auction scheduled for 2026 could act as a gateway for the expansion of large-scale BESS projects in Brazil, particularly amid rising generation from intermittent renewables such as solar and wind and a corresponding increase in curtailment events and grid balancing needs.
The article also addresses regulatory progress for both front-of-the-meter (FTM) and behind-the-meter (BTM) systems, along with growing interest from power generators, industrial consumers, and technology providers in BESS projects. Companies in the power sector, oil and gas players, and large energy consumers are already considering adoption of these solutions to enhance grid reliability, increase operational efficiency, and enable renewable integration.
Despite the positive outlook, significant regulatory challenges remain in the current framework. These include incorporating batteries into infrastructure incentive regimes, defining rules for network usage charges, and allocating capacity reserve costs. According to Débora Yanasse, discussions are ongoing regarding the interpretation of recent legislation, particularly around who should bear these costs, a topic that could lead to litigation if greater regulatory clarity is not achieved.
Read the full BNamericas analysis on Brazil’s energy storage market here.
