Brazil’s lithium battery energy storage market is set for significant growth in 2025, driven by booming solar adoption and evolving regulations. Solar capacity reached 53 GW in early 2025, fueling demand for lithium-ion batteries, especially lithium iron phosphate (LFP) for their safety and longevity, to manage grid intermittency.
Market projections show robust expansion. The battery energy storage system (BESS) market is expected to grow from USD 3.1 billion in 2025 to USD 9.8 billion by 2031, at a CAGR of 21.5%. Installed BESS capacity was 685 MWh in 2024, with a 29% year-on-year increase, and total investments could reach R$22.5 billion (USD 3.79 billion) by 2030 across off-grid, utility-scale, and commercial applications. Residential lithium-ion systems are projected to hit USD 687.6 million by 2030.
Key drivers include solar power’s rise to 32.9% of Brazil’s electricity matrix by 2029 (from 22.2% in 2024), frequent outages averaging 190 hours in some regions, and high tariffs incentivizing peak shaving. Regulatory momentum is strong: ANEEL’s roadmap aims to finalize BESS rules by mid-2025, and a June 2025 auction will contract 300 MW of storage with 4-hour discharge, attracting an estimated USD 450 million in investments. Tax credits and the REIDI program further bolster investments.
2025 is a pivotal year for Brazil’s energy transition, with lithium battery storage enhancing grid reliability and sustainability.
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