The Brazilian Photovoltaic Solar Energy Association (Absolar) has proposed installing 8 GW of large-scale energy storage by 2030, alongside annual capacity auctions and lower taxes on batteries. The proposals form part of three commitments presented to the reelected government of Luiz Inácio Lula da Silva, which also include increasing consumption of curtailed renewable electricity and expanding electricity access to 3 million consumer units.
The proposals come amid curtailment of solar and wind generation, which reached 17.2% of the sources’ potential output in the first quarter of 2026, according to Absolar. To reduce wasted generation, the association wants the capacity reserve auctions for battery energy storage systems (BESS), scheduled for Dec. 2 and Dec. 4, to launch an annual procurement program.
The association also calls for compensation for renewable energy projects affected by curtailment, as provided for by law.
“President Lula promised to deliver the best government the country has ever seen. At a time when Brazil is increasingly affected by extreme weather events and legal uncertainty, fulfilling that promise will require restoring predictability to the electricity sector: compensating projects whose generation has been curtailed, as the law already requires, and ensuring the successful execution of this December’s battery auctions as the first step in a recurring annual energy storage program,” said Bárbara Rubim, chair of Absolar’s board.
Three commitments
Absolar’s plan for 2027 to 2030 has three pillars: Bateria Brasil, Energia que Emprega, and Sol para Todos.
Bateria Brasil calls for annual technology-neutral capacity auctions, a target of 8 GW of large-scale storage by 2030, and reducing battery taxes to the level applied to renewable energy sources. The association also supports batteries paired with new and existing rooftop solar systems.
The agenda includes defining how the December auctions will be funded, implementing the Special Incentive Regime for Infrastructure Development (REIDI) for storage projects, as provided for under Law No. 15,269/2025, and creating a dedicated legal framework. According to Absolar, the tax burden on batteries can reach 84.8%, more than twice that applied to renewable energy sources.
Energia que Emprega aims to increase domestic consumption of renewable electricity that is currently curtailed by attracting data centers, low-carbon energy-intensive industries, green hydrogen projects, and investment in electrification and electric mobility. The proposal also calls for transmission planning and enabling 18 GW of new solar power plants.
Sol para Todos aims to expand electricity access to 3 million consumer units using solar-plus-storage systems. Absolar also proposes replacing diesel generators in isolated power systems with storage-based solutions, reducing tariff-related charges such as the Fuel Consumption Account (CCC) and the Energy Development Account (CDE).
“Brazil has favorable conditions to turn its renewable energy mix into a competitive advantage, including by attracting data centers, energy-intensive industries, green hydrogen plants, and electric mobility. To do so, it needs to store the clean, competitive electricity it generates in abundance and currently wastes. The federal government needs to support domestic consumption of what is now wasted and bring clean energy to those who still lack access. These are the three commitments we have presented to the reelected government, none of which creates a tariff charge or new cost for consumers,” said Rodrigo Sauaia, CEO of Absolar.
Absolar sees data centers as an opportunity to absorb some of the renewable electricity currently being curtailed. It points to the regulation of the Special Tax Regime for Data Center Services (Redata), established by Law No. 15,504/2026. The regime includes conditions relating to the use of renewable or low-emission electricity but still depends on implementing regulations from the executive branch.
The association says new developments need to be accompanied by energy planning and investment in transmission and distribution networks, which it identifies as bottlenecks for large consumers considering investment in Brazil.
Regulation and investment
Another change will be opening the free electricity market to low-voltage consumers, as provided for under Law No. 15,269/2025 and regulated by a decree in August 2026. The schedule provides for commercial and industrial consumers to enter from November 2027, followed by residential consumers from November 2028.
Absolar calls for clear rules, consumer protection, public information campaigns, and competitive conditions for renewable energy sources in this market.
The association says upcoming appointments to the board of Brazil’s electricity regulator, the National Electric Energy Agency (ANEEL), should prioritize technical criteria. Regulatory priorities include energy storage, renewable generation curtailment, distributed generation, new project connections, sector charges, and grid modernization.
Absolar says it will continue engaging with federal and state governments, the National Congress, state legislatures, and regulatory bodies on public policies intended to support energy security, electricity competitiveness, and sustainable economic development.
From pv magazine Brazil
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