The Brazil energy storage market size was valued at USD 216.97 Million in 2025 and is forecast to reach USD 4,478.12 Million by 2034, expanding at a compound annual growth rate (CAGR) of 39.98% during 2026-2034. The market growth is driven by rapid renewable energy expansion, grid management challenges, and increasing integration of solar and wind power which constitute over one-third of the national energy matrix. Supportive regulations, growing domestic manufacturing, and energy-as-a-service business models further advance market adoption.
Study Assumption Years
Base Year: 2025
Historical Year/Period: 2020-2025
Forecast Year/Period: 2026-2034
Brazil Energy Storage Market Key Takeaways
The Brazil energy storage market was valued at USD 216.97 Million in 2025 with a CAGR of 39.98% forecast from 2026 to 2034.
Battery Energy Storage System (BESS) dominated the market with a 70% share in 2025 due to modularity, rapid deployment, and declining lithium-ion battery costs.
Utility scale end users led with a 50% market share in 2025, supported by government capacity auction initiatives and demand for grid-scale solutions.
The country reached 685 MWh of cumulative storage capacity by end-2024, adding 269 MWh in that year, representing 29% growth.
Strategic partnerships are shaping the competitive landscape, with Matrix Energia and Huawei aiming to deploy 750 MWh by 2027.
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Market Growth Factors
The energy storage market in Brazil is driven by the rapid growth of its renewable energy generation capacity, particularly its solar and wind installations. Solar generation is expected to grow from 51.7 gigawatts (GW) in 2024 to 88.2GW in 2029, leading to demand growth for energy storage. This growth in generation also requires storage technology to balance supply and demand on grid.
Another step forward in energy policy in Brazil is the specific capacity reserve auctions. The first of these battery storage auctions would procure systems with minimum capacity thresholds and multi-hour daily discharge obligations under long term contracts, thus providing revenue certainty for very large investments. According to the Brazilian Energy Storage Solutions Association, there are about 18 GW of battery projects registered, ready for contracting.
Storage demand rises due to increased solar curtailments and challenges to grid stability. With curtailments resulting in BRL 1.7 Billion in losses, the sector seeks infrastructure and technology to manage excess generation efficiently. Energy storage solutions are also used for local grid outages, preventing the grid from being overloaded at peak demand and to stabilize the grid.
Market Segmentation
By Type:
Battery Energy Storage System (BESS): Dominates with a 70% share in 2025; favored for modularity, scalability, rapid response, and declining costs linked to global electric vehicle battery demand. It supports commercial viability across multiple applications such as peak shaving and frequency regulation.
Pumped-Storage Hydroelectricity (PSH)
Others
By End User:
Utility Scale: Leads with a 50% share in 2025, driven by government-led capacity auctions and investments from major power companies to manage renewable intermittency and modernize grid infrastructure.
Commercial and Industrial
Residential
Regional Insights
The Southeast region is dominant due to concentrated industrial activities in São Paulo and Minas Gerais, advanced grid infrastructure, and strong demand from manufacturing sectors seeking power reliability. This region supports significant commercial and industrial storage adoption, bolstered by major energy service providers.
Recent Developments & News
Matrix Energia completed Brazil’s first green debentures issuance worth BRL 100 Million (USD 17.9 Million) in September 2024 to build 224 MWh of battery storage capacity, a first dedicated green issuance for a BESS project. In June 2025, Matrix Energia partnered with São Paulo city to deploy 4.5 MWh BESS modules for electric bus depots integrated with ultra-fast chargers. Additionally, Matrix Energia teams with Huawei to develop 750 MWh of storage systems by 2027, underscoring Brazil’s push towards resilient energy storage ecosystems.
Key Players
Matrix Energia
Huawei
ISA CTEEP
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