Storm-driven Sao Paulo blackouts emphasize rising demand for batteries in Brazil

With Reuters reporting around 500,000 electricity users in the Brazilian city of Sao Paulo were still without power on Oct. 14, 2024, three days after a storm felled distribution lines, demand for batteries in the nation is being driven by such climate-change related events.

At one point, in the wake of winds that reached speeds of more than 100 km per hour, 2.1 million customers were affected in a grid network operated by Enel. The Italian energy company could face the loss of its concessionary license unless it can convince electricity regulator Aneel the loss of service was out of its control.

With an ongoing drought continuing to reduce output from Brazil’s extensive hydropower generation fleet, grid electricity users in the country suffered an average 5.24 outages during 2023, with an average duration of 10.43 hours. Those figures had fallen 4.2% and 6.9%, respectively, from 2022.

Grid operators paid out more than BRL 1 billion ($178 million) in compensation to affected customers in 2023.

The threat of climate change-related grid disruption is driving battery demand in the country, with companies such as Matrix Energia offering commercial clients battery energy storage systems via service contracts.

Sophia Costa, head of business at renewables system supplier Holu, has said analysts expect Brazil’s lithium-ion battery sector to expand at a compound annual growth rate of 20% to 30% through 2030.

From pv magazine Brasil.