Brazil’s push to integrate energy storage into its power system is moving from pilot deployments toward industrial scale, with WEG confirming plans to build a dedicated battery energy storage systems manufacturing plant in Itajaí, Santa Catarina, backed by 280 million reais in financing from Brazil’s development bank BNDES.
The financing was approved under a public call targeting strategic minerals and technologies for the energy transition and decarbonization, jointly supported by BNDES and Finep. That framing matters. By linking battery manufacturing to industrial policy and resource security, Brazilian authorities are signaling that storage is now central to national energy planning, not merely a commercial add-on driven by private developers.
Construction of the Itajaí facility is expected to begin shortly, with completion scheduled for the second half of 2027. Once operational, the plant will lift WEG’s BESS manufacturing capacity to up to 2 GWh per year, equivalent to around 400 systems rated at 5 MWh each. At that scale, the facility is positioned to serve both utility-scale projects and a growing pipeline of commercial and industrial applications, which are increasingly sensitive to curtailment risk and power quality issues.
WEG has framed the investment around grid stability needs as Brazil’s renewable share continues to rise. With solar and wind capacity expanding rapidly, the mismatch between generation profiles and demand has already translated into curtailment in some regions, particularly during periods of high solar output. Battery systems offer a partial solution by shifting energy to peak demand periods, but their economics depend heavily on cost declines and regulatory clarity, both of which are now improving in Brazil.
BNDES president Aloizio Mercadante described the project as strategically important for decarbonization and energy security, linking storage directly to system resilience. That linkage reflects a broader policy shift. Storage is increasingly seen as a tool to avoid network reinforcements, reduce outage risks, and stabilize supply in remote or constrained areas, rather than as a niche complement to renewable generation.
Market data supports this repositioning. According to BNamericas, energy storage projects are gaining traction across Brazil, driven by falling battery prices, advances in regulation, and practical needs such as reducing losses from curtailment and improving reliability for commercial users. Storage is also becoming relevant for distribution-level solutions, where grid constraints can delay or block new renewable connections.
Looking ahead, the timing of WEG’s factory investment aligns with expected demand catalysts. Brazil is preparing its first dedicated energy storage auction, scheduled for April, which could provide long-awaited revenue visibility for front-of-the-meter projects. At the same time, both behind-the-meter and utility-scale installations are advancing, suggesting a bifurcated market where resilience, flexibility, and cost avoidance drive investment decisions.
