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 & solar PV together accounting for about 26.4 % of total electricity generation in 2025, reflecting steady growth in both sources [EPE, 2026]. Solar PV in particular reached approximately 88.1 TWh of generation in 2025, and reached ~66 GW (CG+DG) of installed capacity in jun/2026, increasing significantly from the previous year. Renewables overall supplied ~84% of Brazil’s electricity mix (CG) in jun/2026, underscoring the country’s leadership in clean power [EPE, 2025].
However, regulatory and economic barriers still affect the deployment of BESS in Brazil. Although ANEEL has established rules for the colocation of energy storage systems with generating plants [18], the regulatory framework for broader front-of-the-meter (FTM) applications is still evolving. In addition, high implementation costs remain a significant barrier to the large-scale deployment of BESS in power grids.
Current regulation
Although Brazil has established an initial regulatory framework for energy storage, the use of BESS for several applications remains under development, particularly for the provision of ancillary services and T&D investment deferral. Meanwhile, the relatively high cost of BESS components, partly influenced by taxes and import duties, remains a significant barrier to storage projects [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 uptime, directly meeting customers’ needs [20].
Capacity reserve auctions have now been explicitly extended to battery energy storage systems. Under Portaria MME No. 136/2026, the LRCAP 2026 – Armazenamento and LRCAP 2026 – Armazenamento Nacional were established for the procurement of power from new battery energy storage systems. The auction framework, together with the new regulatory provisions for energy storage and the inclusion of storage projects under REIDI (Special Regime of Incentives for Infrastructure Development), could significantly accelerate the BESS market in Brazil [ES, 2025].
Brazilian lithium reserves - Volumes & prices pending update
As reported in Article #3, Brazil holds approximately 2% of global lithium reserves, according to the latest available data (USGS, 2026), and hosts the largest hard-rock lithium operation in the Americas, Grota do Cirilo (Sigma Lithium). The project’s Phase 1 and Phase 2 expansion is designed to reach approximately 520,000 tonnes per year of lithium concentrate.
Adding AMG Mining’s current production capacity of approximately 130,000 tonnes per year, Brazilian annual production capacity could exceed 650,000 tonnes of lithium concentrate in the coming years. Based on the estimated conversion to LCE, this would correspond to roughly 90,000 tonnes of LCE per year, potentially supporting the production of more than 2 million electric vehicles annually, assuming approximately 40 kg of LCE per battery pack. This is comparable to Brazil’s total light-vehicle production in 2021 [22] [23].
CBL, another major mining company and a pioneer in lithium concentrate production in Brazil, has operated in the country since 1991 and has an integrated operation covering lithium mining, concentrate production, and chemical processing. Its chemical plant produces battery-grade lithium carbonate, as well as other high-purity lithium compounds. Sigma Lithium and AMG are also pursuing further downstream processing capacity in Brazil. 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