Energy storage could cut Brazil’s electricity system costs 16% in 2029

<p class="p1"><span class="s1">Storage is essential to expand renewables penetration and ensure grid flexibility, according to a study by consultants PSR. Regulatory and tax barriers still limit the sector, however, and new revenue sources are needed to make projects viable.</span></p><p><strong>From <a href="https://www.ess-news.com/2025/10/22/energy-storage-could-cut-brazils-electricity-system-costs-16-in-2029/" rel="noopener" target="_blank">ESS News</a></strong></p>
<p>The adoption of energy storage technology such as lithium-ion batteries and pumped hydro could reduce the average cost of the Brazilian electricity system by up to 16% in 2029, in addition to contributing to reliability and enabling a greater share of renewables without increasing dependence on fossil-fuel thermoelectric plants.</p>
<p>Those estimates were included in the study “<a href="http://psr-energy.com/docs/psr_insight_storage.pdf" rel="noreferrer noopener" target="_blank">Accelerating the Brazilian Energy Transition: Comprehensive Energy Storage Meta-Analysis for Brazil</a>,” which analyzes the role of energy storage systems (ESS) in the country’s energy transition. The report examines technical, economic, and regulatory measures that could enable the adoption of energy storage in the electricity sector at a time when solar and wind power generation are expanding.</p>
<p>The study states lithium-ion batteries and pumped hydro sites can solve operational problems in the Brazilian electricity system, especially loading ramps and the curtailment of renewable energy sources such as solar and wind, in addition to providing ancillary services.</p>
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