By Brazil Stock Guide – WEG is doubling the planned production capacity of its new battery energy storage systems plant in southern Brazil as the country prepares to hold its first major auctions dedicated to grid-scale batteries.
The Brazilian electrical equipment maker said on Friday that the facility under construction in Itajaí, Santa Catarina, will have annual production capacity of 4 GWh, twice the 2 GWh originally announced in February.
Total investment in the project is now estimated at R$330 million. Operations remain scheduled to begin in the second half of 2027.
The expansion comes just months before Brazil holds its first capacity reserve auctions specifically designed to contract battery storage systems, creating what could become a significant new domestic market for BESS suppliers.
The National Electric Energy Agency, Aneel, has scheduled the auctions for December 2 and December 4. The planned contracts will provide capacity payments for battery projects over a 15-year period, with supply expected to begin in 2028.
WEG said the revised design of the plant includes a higher degree of automation and industrial efficiency, allowing the company to increase output without changing the scheduled start of operations.
When WEG first announced the Itajaí project in February, it said the plant would have capacity of up to 2 GWh per year, equivalent to roughly 400 battery systems of 5 MWh each. The company had also secured R$280 million in financing from state development bank BNDES under its Mais Inovação program.
Battery energy storage systems are increasingly being used alongside intermittent renewable generation such as wind and solar. They can store electricity when generation is abundant and release it during periods of higher demand or system stress, helping grid operators balance supply and demand.
The technology has gained particular relevance in Brazil as rapid growth in renewable generation has increased the need for flexible resources capable of managing fluctuations in electricity supply.
WEG is already listed by BNDES among suppliers of battery storage systems in connection with Brazil’s 2026 capacity reserve auction framework, alongside companies including Moura, BYD, Gotion and Trina. The Itajaí investment gives WEG a significant domestic manufacturing platform just as Brazil begins creating a regulated market for large-scale battery storage.
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