Investment to Address Power Outages

Due to frequent power outages, Brazil plans to invest 26 billion reais (about 26.3 billion yuan) in developing the energy storage market to address power supply shortages. Although Brazil has abundant solar resources, especially its ample sunlight conditions that are very suitable for solar power generation, the country’s grid stability is poor, and power infrastructure is relatively weak, leading to challenges in power supply.

Progress in Power Generation

In the past year, Brazil built 291 power plants, adding an installed capacity of 10.3 GW. In the first quarter of this year, Brazil added 105 power plants, with an installed capacity increase of 2.6 GW, of which photovoltaic power generation accounted for more than 4 GW. These figures show that Brazil has made significant progress in power generation capacity, but reliability issues in power supply still persist.

Emerging Energy Storage Market

Brazil’s energy storage market is currently in its infancy, mainly due to unstable incentives for new energy investments and tax exemption policies, as well as regional differences. However, with economic development and increasing power demand, especially the decline in lithium-ion battery prices and the reduction in energy storage equipment costs, the demand for uninterrupted power supply among residents is increasing. It is expected that the household and commercial energy storage markets will rise rapidly.

“Pro-GD” Plan and Distributed Power Stations

To promote the development of distributed power stations, Brazil implemented the “Pro-GD” plan, encouraging the public to install distributed power stations through tax reductions and credit limits. This plan not only helps expand the energy storage market but also enhances public acceptance of energy storage technology. Currently, Brazil’s energy storage facilities are mainly concentrated in hydropower stations, but traditional storage methods are insufficient for peak shaving and valley filling. Battery energy storage is expected to become the largest market segment in the future.

Time-of-Use Pricing Mechanism

Additionally, Brazil’s time-of-use pricing mechanism makes household energy storage economically beneficial. Under this mechanism, users can store electricity when prices are low and use the stored power when prices are high, thereby saving on electricity costs. This mechanism further promotes the development of the household energy storage market.

Success of Chinese Enterprises

Some Chinese companies have already achieved success in the Brazilian market. For instance, companies like Deye Technology, Hoymiles, and Sungrow have carved out a niche in the Brazilian market with their low-cost and customized products. The success of these enterprises indicates that Brazil’s energy storage market has enormous potential and attractiveness.

Future Market Growth

By 2030, Brazil’s large-scale energy storage market is expected to grow by more than 84%, significantly driving the expansion of the entire energy storage market. With increased investment and technological advancements, Brazil’s energy storage market is expected to experience rapid development in the coming years, addressing power supply shortages and enhancing grid stability and reliability.

Contributions of Delong Energy

As a leading Chinese lithium battery manufacturer, Delong Energy can provide Brazilian users with 12V-96V lithium-ion batteries, lithium power batteries, portable energy storage, household energy storage, high-voltage energy storage, and other products. We adhere to the philosophy of quality first, striving to offer high-quality and cost-effective lithium-ion batteries to meet the growing demand in the Brazilian market and contribute to the development of the energy storage market in Brazil.

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