SP & PT versions under construction
Brazil Regulation - linked to Article #4
Front-of-the-meter (FTM) & Behind-the-meter (BTM) ES
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Brazil holds an outstanding position in renewable energy, with wind and solar PV together accounting for about 24 % of total electricity generation in 2024, reflecting steady growth in both sources. Solar PV in particular reached approximately 70.7 TWh of generation and 48.5 GW of installed capacity in 2024, increasing significantly from the previous year. Renewables overall supplied 88.2 % of Brazil’s electricity mix in 2024, underscoring the country’s leadership in clean power [EPE, 2025].
However, ANEEL (National Electric Energy Agency) i) has not yet established rules for the formation of hybrid or associated power plants using storage [18]. Also, ii) inadequate regulatory framework for front-of-the-meter (FTM) applications, and iii) high implementation costs affect the use of BESS in power grids.
Current Regulation
In fact, current regulation does not address the use of energy storage for the provision of i) ancillary services and ii) T&D investment deferral. Meanwhile, high prices of BESS components, driven by taxation, which peaks 80% for batteries, inverters, and converters, impact projects involving storage [19].
Some behind-the-meter (BTM) BESS applications are already feasible: batteries can be legally deployed i) to reduce peak demand and ii) as backup systems to increase overall system up time, directly meeting customers’ needs [20].
Capacity reserve auctions, as established under Law No. 14.120/2021 and further advanced through subsequent regulatory developments, are being structured to explicitly include BESS, and the first dedicated BESS product is expected to be auctioned in April 2026 under the LRCAP framework. This, together with ongoing adjustments to the regulatory framework, public consultations for defining auction rules, and tax incentives such as inclusion in REIDI, could significantly warm up the BESS market in Brazil [ES, 2025].
Brazilian Lithium Reserves - Volumes & prices pending update
As reported in Article 3, Brazil holds 8% of global Lithium reserves, and also the largest hard-rock Lithium project in the Americas (Grota do Cirilo – Sigma Lithium), with an estimated production of 531,000 tons of Li concentrate (5 to 6%) in its second phase.
Adding to the production of AMG Mining, another major mining company operating in the country, Brazilian annual production of Li concentrate could exceed 660,000 tons (89,700 tons of LCE) in just a few years, allowing a yearly production of more than two million electric vehicles (40 kg of LCE per battery pack) [22], which matches to all Brazilian light vehicle production in 2021 [23].
CBL, another major mining company and a pioneer in Li concentrate production in Brazil, with operations since 1991, produces battery-grade Lithium carbonate in its chemical plant since 2019. Sigma and AMG also plan to install their own chemical plants in the country in near future. More details can be found in Article #3.
References
[18] https://canalsolar.com.br/usinas-hibridas-sao-regulamentadas-pela-aneel/
[22] https://www.researchgate.net/publication/358743029_IRENA_Critical_materials_Lithium_2022