The President of the Brazilian Electricity Companies Association recently stated that the first bidding for pumped storage projects in the country is expected to officially start in 2027. The establishment of this timetable marks Brazil, an energy powerhouse based on hydropower, finally beginning to systematically embrace large-scale long-term energy storage.

The number of starts and stops of hydropower stations has increased by 62% in six years

The Brazilian power system is undergoing structural changes. Hydroelectric power plants still account for over 60% of the country's electricity consumption, but the rapid expansion of wind and solar energy is changing the rules of the game. Between 2015 and 2024, the number of starts and stops of hydropower stations increased by 62%; In 2024 alone, 102 hydropower stations recorded over 107000 operations. Power plants are increasingly transitioning from base load power sources to system balancing tools, with a growing demand for flexibility.

The current legal framework has paved the way for capacity reserve bidding in 2027. The existing laws in Brazil have included hydraulic energy storage systems in the tender category; Law No. 15.269 of 2025 officially recognizes the role of energy storage at the legal level; In 2026, the National Energy Policy Committee passed Resolution No. 7 and Resolution No. 8, creating specific conditions for the first batch of pumped storage projects. The remuneration will be based on available power and operational performance, rather than traditional power generation - precisely the precise pricing of their rapid response and system regulation value.

189GW global experience replicable

Pumped storage has been operating globally for decades, with approximately 189GW currently in operation and over 100GW under construction. The main driving force for growth is the expansion of variable renewable energy. Pereira stated that Brazil does not need to import technology - it has the terrain conditions, technical knowledge, and complete industrial chain domestically, and can independently develop solutions. Keywords: energy storage power station, pumped storage

The bidding will be conducted in stages, with the highly anticipated second phase planned for the first quarter of 2027, with a target contracted capacity of up to 3000MW. However, the challenges are equally clear: regulatory details such as contract duration, pricing formula, and assessment criteria still need to be finalized; And it usually takes seven to ten years from planning to operation. When the bidding falls in 2027, the Brazilian energy storage market will truly take off.Editor/Cheng Liting