A report by Maria Guilhermina, published by Revista Potência on July 15, 2026 and republished by Absolar on July 20, examines a contradiction in the Brazilian power sector. The country now experiences surplus energy at certain times, yet it operates a system designed to manage shortages. In this scenario, battery energy storage (BESS) emerges as a piece to rebalance the relationship between generation and the grid.
A solar expansion with significant gains
The report starts from the benefits of photovoltaic growth. According to Absolar, solar energy has already avoided the emission of about 105.9 million tonnes of CO2 in electricity generation. It has also accounted for more than 1.9 million jobs created since 2012.
The pace of expansion remains high. According to the association, the photovoltaic sector added 10.6 GW to the power system last year. The projection is to repeat the same volume in 2026. To give a sense of scale, the article compares the figure to the Belo Monte hydroelectric plant, one of the largest in the country, which has 11.2 GW of installed capacity. In other words, solar adds almost the equivalent of a plant of that size every year.
The distribution grid fell behind
The core of the analysis is the mismatch between generation and infrastructure. The distribution grid has not evolved at the same speed as solar. The effect is most visible in distributed micro and mini generation (MMGD), made up of systems installed by consumers themselves.
Aneel data cited in the report indicate that MMGD already totals about 42.3 GW. Part of this output is consumed on site, in homes and businesses. Another part is injected into the grid and becomes part of the electricity mix.
This surplus flow creates a well-known problem. Distribution grids were designed to carry energy in a single direction, from the substation to the consumer. When many systems inject energy at the same time, especially during peak irradiation hours, some sections can reach their technical limit. Hence the idea of oversupply coexisting with a structure planned for scarcity.
Where batteries come in
A BESS stores energy in batteries and returns it to the grid at another time. In practice, it can absorb surplus solar generation at midday and release it when demand rises or when photovoltaic output drops.
This time shift helps reduce pressure on congested points of the grid. It also makes better use of energy whose injection might otherwise be curtailed without storage. Installed close to load or generation, battery systems act as local buffers. To do so, they provide services such as voltage control, peak management and greater operational flexibility.
What changes in practice for the BESS market
The report's diagnosis has direct consequences for the storage value chain:
- Developers: the combination of booming MMGD and a saturated grid points to opportunities in projects that pair batteries with existing generation or relieve distribution bottlenecks. Mapping where solar injection already strains the grid becomes a strategic step.
- EPCs: demand is likely to grow for hybrid solutions and for retrofitting operating solar plants with storage. This requires expertise in integration, protection and connection to the distribution grid.
- Manufacturers and suppliers: with solar adding volumes close to Belo Monte every year, the potential market for batteries, inverters and energy management systems follows that scale. Attention should turn to modular solutions suited to both distributed generation and larger projects.
The underlying message is that the challenge is no longer producing clean energy but accommodating it. Those who offer flexibility to the grid should take a relevant position in the next phase of Brazil's energy transition.
Original source: ABSOLAR — Papel do BESS em um setor energético com excesso de oferta e sistema projetado para escassez