Brazil Targets 7 GW of Storage by 2035 as Battery Prices Fall

TL;DR: Brazil aims to install about 7 GW of energy storage and 3 GW of demand response by 2035. Battery deployment could slash capacity costs by up to 48% and carbon emissions by up to 66%.

Brazil’s grid faces shifting load patterns as renewable output grows, creating steeper ramps and lower minimum demand. Experts say short‑term flexibility needs could rise two‑to‑tenfold by 2035, prompting a search for fast‑responding resources. Analysts view storage and demand response as ways to keep supply balanced without building new fossil‑fuel plants.

The Energy Research Company (EPE) projects Brazil can add roughly 7 GW of battery storage and another 3 GW of demand response by 2035. Analyses presented at the Storage Leaders event show that using batteries could cut total capacity costs by up to 48% and lower carbon emissions by up to 66%. Globally, battery capacity has expanded from about 1 GW in 2013 to more than 85 GW in 2023, with the bulk of installations in China, the United States and Europe.

Falling battery prices—down from roughly $170‑$180 per kilowatt‑hour to near $108—make the technology competitive for both bulk‑scale and distribution‑level applications. Pilot projects in São Paulo and Paraná have shown that batteries can prevent manual load cuts, improve voltage stability and defer costly grid upgrades. However, analysts warn that a stable legal framework and clear market rules are essential to unlock the full potential.

Watch for Brazil’s upcoming energy auctions and regulatory proposals that could define how storage participates in capacity markets and ancillary services.