Without storage infrastructure, expansion of fast charging stations may stall; event should be dominated by Chinese technology
Pressured by the growing waste of renewable energy and the need to modernize the electricity system, Brazil is expected to hold its first reserve capacity auction focused on batteries in June. The event is considered by the sector as the “missing link” to ensure the country’s energy security and, crucially, to enable the charging infrastructure necessary for the massification of electric cars.
The movement occurs in response to a structural bottleneck. With the accelerated advance of wind and solar plants, the National System Operator (ONS) has been forced to make cuts in generation. In 2025, according to data from BloombergNEF, about 25% of solar energy and almost 20% of wind power produced in the country were discarded due to lack of immediate demand or transmission capacity at the time of generation.
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The introduction of large-scale storage systems directly attacks the intermittency of renewable sources. By storing the surplus energy generated during the day and injecting it into the grid at peak hours – just when drivers tend to plug their vehicles in their vehicles at home – the batteries prevent overcharging.
Experts point out that, without this safety “cushion”, the installation of ultra-fast charging stations (above 150 kW) and the electrification of heavy fleets, such as buses and trucks, would be compromised by the instability of the distribution network.
The government plans to contract about 2 GW of power in the inaugural auction. Brazil is expected to install more than 1 GW per year in grid-connected batteries by the end of the decade, creating a stable regulatory environment for investors. In this scenario, China starts with a competitive advantage.
Dominating the entire production chain, from lithium mining to module assembly, Chinese companies such as Huawei have already signaled interest in the auction, acting as suppliers or integrators. Although Western companies, including Tesla’s energy division and Petrobras itself, monitor the event, the market forecast is for an Asian hegemony in the supply of equipment that will support the new phase of national electric mobility.
