By Leticia Fucuchima SAO PAULO, March 2 (Reuters) - China's Huawei will sell batteries to British business Aggreko for a renewable energy project in Brazil's Amazon region, in what is expected to
Huawei and Aggreko to Develop Major Energy Storage Project in Brazil's Amazon
Overview of the Energy Storage Project
By Leticia Fucuchima
SAO PAULO, March 2 (Reuters) - China's Huawei will sell batteries to British business Aggreko for a renewable energy project in Brazil's Amazon region, in what is expected to become the country's largest-ever energy storage system, the two companies told Reuters.
Project Details and Implementation
-
Integration with Solar Plants and Microgrids
Huawei's batteries will run alongside solar plants set up in microgrids across Brazil's Amazonas state, in order to diversify Aggreko's power supply in the region away from polluting thermal plants.
-
Investment and Timeline
Aggreko's project will cost about 850 million reais ($165.55 million) and take up to three years for full implementation, with the first plants coming online between 2027 and 2028, said Cristiano Lopes Saito, Aggreko's director for sales to the utilities sector in Brazil.
-
Project Significance
"It's an extremely disruptive project, the largest microgrid project currently in the Americas," Barbara Pizzolato, off-grid director at Huawei in Brazil told Reuters.
Environmental and Social Impact
-
Reduction of Carbon Emissions
While the thermal plants will remain operational to guarantee supply, the project should allow for lower carbon emissions, the companies said.
-
Energy Supply to Local Communities
They forecast that the microgrids will supply energy to communities in 24 locations in Amazonas state, including in large cities such as Tefe, home to about 75,000 people.
Strategic Importance for Huawei and Brazil
-
Expansion of Huawei's Operations
The project is a boost to Huawei, as the Chinese manufacturer seeks to expand operations in Brazil amid expectations of an upcoming first-ever government auction for batteries.
-
Current State of Battery Energy Storage in Brazil
Existing Projects
Brazil is just starting to adopt battery energy storage systems and has only one large-scale project of this type, by the transmission company ISA Energia on the coast of Sao Paulo state.
($1 = 5.1345 reais)
(Reporting by Leticia Fucuchima; Editing by Nia Williams)
