The National Bank for Economic and Social Development (BNDES) approved a loan of R$280 million for the Brazilian multinational WEG to build Brazil’s largest factory for battery energy storage systems, a technology known as Bess, for its acronym in English, Battery Energy Storage System.
The factory will be in Itajaí, Santa Catarina, and should create 90 jobs. According to statements from the company and BNDES, the works will begin “soon” and are scheduled for completion in the second half of 2027.
Bess is considered strategic for the energy transition as it allows more efficient use of energy from intermittent renewable sources, such as wind and solar, since the sun and wind depend on atmospheric conditions.
These battery energy storage systems serve to store electrical energy and release it when necessary. In this way, they help to stabilize electrical networks.
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Curtailment solution
One of the system’s attributes is to reduce losses associated with the call curtailmentforced reduction or interruption in the generation of clean energy, determined by the National Electric System Operator, a body linked to the Ministry of Mines and Energy (MME).
The government is working with the idea of a Capacity Reserve Auction, when companies will be able to supply Bess to the electrical system. A public consultation was opened at the end of January and is scheduled to end on the 11th.
Promotion
The loan to WEG is part of the BNDES Mais Inovação program, which directs resources to initiatives aimed at innovation and digitalization.
WEG, specialized in electrical and electronic equipment, such as motors, generators and transformers, gained access to the resource through a specific notice aimed at the transformation of strategic minerals for energy transition and decarbonization.
In the manufacture of Bess, lithium is used, a strategic mineral, seen as a protagonist in the energy transition.
Although the financing has been approved, the operation has not yet been contracted, so it is not possible to inform the cost of the loan.
Energy transition
The new factory will expand WEG’s production capacity to up to 2 gigawatt-hours (GWh), equivalent to 400 systems of 5 megawatt-hours (MWh), energy units.
The plant provides for a high degree of automation, including internal movements being carried out by autonomous mobile robots.
The financing also includes a testing and development laboratory.
The president of BNDES, Aloizio Mercadante, considers that the financing contributes “to strengthening energy security, increasing the resilience of the electrical grid and the expansion of renewable sources”.
The energy transition to an economy less powered by fossil fuels, which cause global warming, is one of the paths outlined by experts, activists and authorities as a brake on climate change.
WEG president, Alberto Kuba, emphasizes Brazil’s presence in the energy transition scenario.
“This is an investment aligned with the strategic objective of positioning WEG and Brazil more competitively in the global energy transition scenario, mitigating risks and strengthening the national presence in this expanding segment”, he stated.
Founded in 1961, WEG maintains industrial operations in 18 countries and has more than 49 thousand employees. In 2024, 57% of the company’s revenue of R$38 billion came from sales outside Brazil.
