Expected ROI of backup power battery project in Brazil 2026

What factors influence the ROI of a battery energy storage system?

Several key factors influence the ROI of a BESS. In order to assess the ROI of a battery energy storage system, we need to understand that there are two types of factors to keep in mind: internal factors that we can influence within the organization/business, and external factors that are beyond our control.

How do I assess the ROI of a battery energy storage system?

In order to assess the ROI of a battery energy storage system, we need to understand that there are two types of factors to keep in mind: internal factors that we can influence within the organization/business, and external factors that are beyond our control. External Factors that influence the ROI of a BESS

How does energy storage affect Roi?

The cost of electricity, including peak and off-peak rates, significantly impacts the ROI. Energy storage systems can store cheaper off-peak energy for use during expensive peak periods. Subsidies, tax credits, and rebates offered by governments can enhance the financial attractiveness of ESS installations.

Is Brazil preparing for a new cycle of multi-billion-dollar investments?

After attracting $35 billion (R$ 175 billion) in already contracted investments for decarbonization in 2023, Brazil is preparing for a new cycle of multi-billion-dollar investments between this year and 2026.

How much money will Epe invest in 2026?

For future projects, EPE has pointed to works to be authorized in auctions expected to result in R$32 billion in investments by 2026 for the construction of 9,000 kilometers, in addition to substations. Most of this total, equivalent to R$23 billion (or 72%), is planned to be allocated in bids scheduled for March and September 2024.