BESS is a modern, flexible, and sustainable alternative. With a response time measured in milliseconds, this technology enables efficient energy management, preventing waste and reducing operational costs. Additionally, the CVU of batteries is zero, ensuring a cleaner and more economical solution.
Brazil faces a decision that could define the future of its energy matrix: modernize with sustainable and innovative solutions or remain anchored in obsolete and polluting technologies. The postponement of the Capacity Reserve Auction (LRCAP) for batteries by the Ministry of Mines and Energy (MME) represents not just a delay but a serious obstacle to the modernization of the electric sector, at a time when the country seeks to establish itself as a global leader in renewable energy and is set to host COP30, a crucial event for the future of global climate action.
With COP30 approaching and Brazil positioned as the host of an event that will define the course of the global fight against climate change, postponing LRCAP sends a concerning signal: while the world seeks to reduce emissions and invest in sustainability, Brazil hesitates and clings to outdated solutions.
Postponing the auction creates uncertainty and stalls essential investments in the energy transition. While other nations move forward with modern solutions like battery energy storage systems (BESS), Brazil remains dependent on thermoelectric plants (UTEs)—a costly, polluting, and inefficient technology.
Markus Vlasits, president of the Brazilian Association of Energy Storage Solutions (ABSAE), emphasizes the need for a course correction:
“Brazil has a unique opportunity to lead the energy transition with innovative technologies. The delay in LRCAP harms the modernization of the sector and distances us from the future of clean energy.”
The cost of UTEs is a major burden on the economy. With a Variable Unit Cost (CVU) reaching USD 450 per Megawatt-hour (MWh), choosing thermoelectric plants places a heavy financial load on consumers and industries, making Brazilian energy less competitive globally. In contrast, renewable sources like solar and wind cost around R$ 200 per MWh, proving that insistence on UTEs is an economic anachronism.
UTEs are not only expensive but also inefficient. With a minimum dispatch time of 8 to 12 hours, they cannot quickly adapt to fluctuations in electricity demand. This results in energy waste and unnecessary increases in greenhouse gas emissions, contradicting Brazil’s environmental commitments.
The choice between recarbonization and innovation affects not only the electric sector but also the entire Brazilian economy. UTEs increase energy costs, harm consumers and industries, and raise the country’s carbon footprint. On the other hand, battery storage represents an efficient, cost-effective, and internationally aligned sustainability model.
Choosing Between the Past and the Future
Investing in UTEs is a step backward, compromising both the economy and the environment. Brazil must prioritize smart and sustainable solutions, and battery energy storage is the most favorable option for the future of the country's energy matrix.
The time to act is now. Choosing BESS ensures a cheaper, cleaner, and more innovative energy sector, while insisting on recarbonization is a costly mistake for the country. Brazil stands at a crossroads: continue in the past or embrace a sustainable and competitive future.
The choice is clear.
Article by Markus Vlasits, President of the Advisory Board of ABSAE – Associação Brasileira de Soluções de Armazenamento de Energia
