Brazil's new energy installed capacity is rapidly expanding, but the power grid's consumption capacity is lagging behind, and the problem of large-scale wind and solar power curtailment is becoming increasingly severe. The local government has successively introduced two core policies, namely compensation for abandoned electricity and independent energy storage auctions, to activate the new energy stock market in both directions and open up systematic growth space for the energy storage industry.

The current situation of abandoned electricity is highlighted

The application for compensation for abandoned wind and solar power in Brazil has been fully completed, with 1539 wind and solar power stations across the country participating in the application, corresponding to an installed capacity of 53GW, accounting for 91% of the total compliant capacity. This compensation is implemented in accordance with Act No. 15.269 of 2025 and Regulation No. 140 of the Ministry of Mines and Energy, with a compensation window locked from September 1, 2023 to November 25, 2025. Compensation can only be provided in two scenarios: power grid failure and safety limited power generation. Abandoned power caused by excess electricity shall be borne by the enterprise itself. The declared enterprise shall permanently waive its relevant judicial claim rights, and the final compensation amount shall be determined by official institutions after verification, calculation, and correction of the inflation index.

Energy storage is the key to breaking the deadlock

The Brazilian power grid agency has issued a warning that if the growth rate of wind and solar installed capacity continues to exceed the construction of the power grid, the annual scale of abandoned electricity in 2030 may reach 40GW. The official has identified four major solutions, including transmission expansion and energy storage construction, and regards energy storage as the core means of resolving consumption problems. To address the flexibility gap in the power grid, Brazil has launched its first national independent energy storage special capacity auction. The project has signed a 15 year capacity contract, which will be uniformly fulfilled in August 2028. The standard includes a single unit capacity of ≥ 30MW, a 4-hour duration, a round-trip efficiency of ≥ 85%, and mandatory grid operation standards. Keywords: Brazil's abandoned power management, energy storage marketization

Release of market opportunities

The registration of energy storage auction technology has ended, with a total of 6091 energy storage projects applied for, with a total scale of 296.8GW. The Northeast wind and solar power base has the highest application heat, and many leading energy storage enterprises in China have participated in the application. The dual policies have formed a complete industrial closed loop, the compensation mechanism has revitalized the cash flow of existing projects, differentiated compensation rules have forced new energy to be matched with energy storage, and national level auctions have been conducted to purchase energy storage resources in bulk. Domestic overseas enterprises can seize the Brazilian energy storage blue ocean market, while being alert to risks such as policy changes and judicial constraints, and carefully layout related projects.Editor/Min Jing