Containerized BESS project financing options in Brazil 2030

How does Bess work in Brazil?

In May 2024, the Brazilian Ministries of Development and of Science and Technology issued an ordinance to provide tax and non-tax incentives for the production of BESS in Brazil. The ordinance establishes the concept of a ‘basic production process’ and a points-based system for lead and lithium batteries.

What businesses are deploying Bess in Brazil?

A few other businesses exist in Brazil as well, such as Micropower, Aldo Solar and YouOn, for instance. The deployment of BESS can take various forms, and business initiatives may vary. To address this, the National Electric Energy Agency of Brazil (ANEEL) has identified a regulatory gap and initiated a three-phase roadmap.

What are the main sources of long-term funding in Brazil?

Brazil‘s domestic development banks, historically BNDES but more recently Banco do Nordeste, have been the primary sources of long-term funding, but lenders such as the IDB, World Bank and KfW have also played an important role. Source: BloombergNEF.

What is driving Brazilian energy storage demand?

An unreliable grid is driving Brazilian energy storage demand. The world is set to have more than 760 GWh of energy storage capacity by 2030, led by Chinese and United States markets dominated by utility-scale systems.

Can foreigners invest in battery storage businesses in Brazil?

Investment, incentives and taxation scenarios According to Brazilian law, there are no legal restrictions on direct foreign investment in the battery storage businesses or in the power sector (except in very specific segments or sectors of the economy).

Who finances Clean Power in Brazil?

The most active players in financing clean power in Brazil are domestic development banks, with the top lead arrangers being Brazilian public banks BNDES, Banco do Nordeste, Sudene and others.