By Gabriel LaCount, Dr. Luana Marangon Lima, Bernardo Marangon, Rafael José de Andrade

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Duke University

https://doi.org/10.55894/dv5.12

Abstract

Battery energy storage systems (BESS) have emerged as an effective solution to provide electric grid

stability across global markets. This paper evaluates the role of BESS in the Brazilian power system through

a comparative market analysis and case study. This analysis underscores the growth potential of private

utility-scale BESS projects in Brazil while also identifying several challenges to widespread deployment.

The Brazilian grid is currently benefitting from a growing share of wind and solar electricity generation to

supplement long-standing reliance on hydropower, but requires additional flexible capacity to maintain system

stability with these variable resources. The case study models commercial application of behind-the-meter

BESS with a 2-hour, 250 kWh / 125 kW battery system in Rio de Janeiro. The results demonstrate an internal

rate of return (IRR) of 12.82% and a discounted payback period of 6 years, with cash flows driven by peak-

demand cost reduction through load shifting. This case study demonstrates that BESS projects can provide both

economic value to consumers and operational benefits to the grid, supporting increased integration of renewable

energy.