On Tuesday, August 11, 2026, ABSOLAR's CEO, Rodrigo Sauaia, spoke on the floor of the Federal Senate during a debate session on public policies for renewable energy and Brazil's potential to lead the global energy transition. Representing solar power and electricity storage, he presented data on the sector's growth and brought senators three requests of direct interest to those who develop, build and supply battery systems: reduce taxes on storage, make it easier for solar to access Reidi, and change how battery auctions are funded.
A debate with government, international organizations and industry associations
The session brought together representatives of the government, international organizations and renewable energy associations. Among the participants was Natália Oliveira, from the Global Renewables Alliance (GRA), an organization that recently released a letter addressed to presidential candidates, prepared jointly by the renewable sources. The meeting therefore comes at a time when the sector is trying to place its priorities on the national political agenda.
To support his arguments, Sauaia highlighted the weight photovoltaics already has in the Brazilian power system:
- solar accounted for 77% of the renewable capacity added in 2025;
- it is the second-largest source in the country's power mix, with 27.4% of installed capacity;
- it has a strong capacity to generate local income and jobs.
Batteries as a pillar of security, but heavily taxed
The central point for the BESS market was the defense of storage as one of the pillars of Brazil's energy security. Battery systems can store energy at times of surplus and release it when demand rises or variable generation drops, in addition to providing grid stability services. As the share of solar grows, this flexibility becomes more relevant.
The obstacle Sauaia pointed to is the tax burden, which he described as disproportionate and above 80% on the technology. In practice, a burden of this size makes imported and domestic equipment more expensive, worsens the financial viability of projects and reduces the competitiveness of storage compared with other solutions.
Reidi and funding of battery auctions
Sauaia also called for adjustments to issues that currently make it difficult for solar to qualify for Reidi, the Special Incentive Regime for Infrastructure Development. In general, the regime suspends certain federal taxes on goods and services intended for qualified infrastructure works, easing the upfront investment.
Another request involves battery auctions. Capacity auctions contract resources capable of guaranteeing power to the system when needed, and the way this cost is passed on determines who pays the bill. ABSOLAR proposes that the investment be shared among all sector agents, following the same model adopted in fossil thermal power auctions, which would put batteries on an equal footing with those plants.
Finally, the executive argued that the country is in a position to attract new electrical loads, such as data centers, green hydrogen production, e-mobility and the electrification of productive sectors, demands that reinforce the need for flexibility and storage.
What changes in practice for the BESS market
None of the proposals has become a rule yet, but the Senate speech gives institutional visibility to issues that weigh on project cash flows. For each link in the chain, the points to watch are:
- Developers: follow the discussion on funding battery auctions, since broad cost sharing may change the attractiveness and design of future procurements.
- EPCs: monitor possible changes to Reidi, which could reduce deployment costs and affect project budgets.
- Manufacturers and suppliers: a reduction of the tax burden above 80% would have a direct effect on final equipment prices and market scale.
- All agents: keep financial scenarios with and without the changes, avoiding investment decisions based on proposals still under debate.
The message is that storage has become part of the solar sector's official discourse in Congress, and progress on these issues is likely to set the pace of battery expansion in Brazil.
Original source: ABSOLAR — No Senado, ABSOLAR destaca o papel da fonte solar e do armazenamento na transição energética do Brasil e propõe melhorias ao setor