September 22nd, 2025
The Ministry of Mines and Energy (MME) and the Energy Research Office (EPE) released, on Monday (September 22), the Report on Distributed Generation and Behind-the-Meter Battery Energy Storage, as part of the Ten-Year Energy Expansion Plan 2035 (PDE 2035). The publication provides an integrated view of the evolution of distributed generation (DG) and the growing role of batteries in consumer units, reflecting the importance of distributed energy resources (DERs) for the modernization and decentralization of the national power system.
The document projects that DG could reach between 61.4 gigawatts (GW) and 97.8 GW of installed capacity by 2035, depending on the scenario. In the reference scenario, approximately 9.5 million consumers are expected to adopt DG, totaling 78.1 GW of installed capacity and contributing with 12.1 GW average to national electricity generation.
The study shows that, for the fourth consecutive year, distributed solar power led the expansion of installed generation capacity in 2024, consolidating DG as a key player in the power sector. Currently, distributed generation accounts for approximately 5.6% of the electricity generated in Brazil and represents about 13% of regulated consumption nationwide. The residential segment remains the main driver of this expansion, supported by increasing competitiveness and the legal framework established by Law No. 14,300/2022.
Behind-the-meter batteries drive grid modernization
One of the highlights of the report is the progress in analyzing the role of behind-the-meter batteries, which have been gaining prominence in modernizing electricity infrastructure. The sharp drop in global lithium-ion battery prices in 2024 opened new opportunities for commercial, industrial, and residential applications. In Brazil, EPE's simulations indicate that storage systems may already be economically viable, particularly when system costs fall below BRL 2,000/kWh, for example, as a substitute for diesel generators during peak hours.
Behind-the-meter storage also shows promise in increasing self-consumption in distributed generation systems, enabling consumers to store surplus solar generation for later use. Although payback periods remain long in many cases, further price reductions and the possibility of regulatory changes starting in 2029 are expected to make this market increasingly attractive. Depending on price assumptions and adoption rates among DG consumers, the cumulative potential market for residential batteries could exceed BRL 200 billion in investments by 2035.
By integrating DG and batteries into long-term planning, the new PDE 2035 report underscores the importance of coordinated public policies, modern regulatory mechanisms, and appropriate economic incentives to ensure an efficient, resilient, and fair energy transition. The publication helps reduce information asymmetries and supports strategic decision-making by both public and private stakeholders in transforming Brazil's electricity system.
Click here to access the Report on Distributed Generation and Behind-the-Meter Battery Energy Storage - PDE 2035
