Chinese electrical equipment companies are boosting their presence in Brazil to compete in the battery market, as the country gears up for large-scale storage systems. A government auction planned for this year is expected to draw billions in investments, targeting 2 GW of capacity. Manufacturers like Sungrow and Huawei have already restructured teams and begun talks with potential clients.
Brazil is preparing for large-scale energy storage installations, driven by federal auctions and demand from companies seeking to avoid high nighttime energy costs. The Absae industry association projects investments of R$ 45 billion by 2030 and R$ 77 billion by 2034. The main auction, organized by the Ministry of Mines and Energy, is slated possibly for April, with a demand for 2 GW starting in August 2028, available for four hours daily, totaling R$ 13.9 billion.
Chinese manufacturers such as Sungrow, BYD, CATL, Huawei, Jinko, JA Solar, TBEA, Risen, and Pylontech intend to participate solely as BESS suppliers, without forming consortia. By early February, Sungrow had contacted 37 interested companies, Huawei 30, and TBEA 80. "We will not join consortia and I believe no manufacturer will, especially the Chinese. The intention is to partner with players entering the auction and then, if they win, provide our solution," said Rodrigo Marchezini, Risen's director in Brazil.
Risen, which has sold solar panels in the country since 2012, will deliver its first 20 MWh storage systems this month. Globally, it has 6 GWh installed. Sungrow, the world leader with 40 GWh installed and 10 GWh in Latin America (mostly in Chile), reassigned staff to focus on the auction. "Today, our work in Brazil is to support clients who may enter the auction; the focus is entirely on it," stated Mauro Basquera, Sungrow's technical director in Latin America.
Jinko established a dedicated battery team last year, according to Kaue Oliveira, technical director in Brazil. Huawei has sold 400 MWh in the country, with 100 MWh installed, and partnered with São Paulo's city hall for batteries in garages for 120 electric buses.
Chinese systems cost US$ 73 per kWh, compared to US$ 177 for European and US$ 219 for American ones, per BloombergNEF. In February, the import tax rose to 20%. "China is a global manufacturing hub for energy transition technologies, with the largest production capacity and lowest costs," noted Rafael Rabioglio, BloombergNEF's Latin America head. Competitors include Brazilian firms like WEG and Moura, U.S. companies like GE Vernova and Tesla, and Spain's Ingeteam.
