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YOU.ON Targets 1 GW BESS for Brazil Auction with Local Content
YOU.ON is preparing for Brazil's inaugural capacity reserve auction for battery systems. The company aims to supply approximately 1 GW of battery energy storage systems that comply with local content requirements. Through a partnership with China's Hyperstrong and an approved BNDES methodology, YOU.ON can utilize a mix of imported and locally sourced components. This strategy addresses Brazil's increasing demand for energy storage.
YOU.ON has indicated its intention to supply approximately 1 GW of battery energy storage systems (BESS) for projects awarded in Brazil’s first capacity reserve auction for battery systems. This auction is scheduled for December 2. To comply with the nationalization requirements set by the Brazilian Development Bank (BNDES), the engineering company has signed a binding agreement with China’s Hyperstrong.
YOU.ON’s BNDES-accredited solution is the first to receive a Finame code, confirming compliance with local-content requirements. Route 1 of the bank’s nationalization methodology permits the direct-current (DC) block of the storage system, including its batteries and power conversion systems (PCS), to be imported. Within YOU.ON’s solution, these specific components undergo manufacturing and testing processes in China. According to Giorgio Seigne, Director at YOU.ON, this method reduces the risks associated with integrating equipment not previously manufactured in Brazil.
Local suppliers must provide the system’s alternating-current (AC) block, which encompasses transformers, medium-voltage switchgear, electrical panels, and alarm systems. A number of these components necessitate their own BNDES accreditation. For other items, local-content compliance can be demonstrated through purchase invoices, provided transactions occurred in Brazil. Services must be provided by companies registered in the country. The accreditation process, which took YOU.ON nearly six months, requires documentary evidence such as production capacity proof and formal supply proposals.
YOU.ON has also identified alternative suppliers for individual components to potentially increase its supply capacity to between 2 GW and 2.5 GW, should demand exceed initial estimates. Hyperstrong is described as one of the world’s largest integrators, with gigawatt-hours of systems installed across Asia, Europe, and the United States. Beyond supplying the accredited system, YOU.ON leverages its engineering expertise for the auction, covering civil works, assembly, logistics, commissioning, and training.
Brazil’s Energy Research Office (EPE) estimated a need for over 4 GW of power capacity by the second half of 2028 in its 2025 Ten-Year Energy Expansion Plan. The auction timeline anticipates contract signings around April 2027, with commercial operation slated for August 1, 2028. This allows approximately 16 months for manufacturing, import, localization, transport, installation, and testing. While this schedule is considered achievable, Mr. Seigne emphasizes the importance of meticulous logistical planning. Future auctions are likely to demand higher levels of local content, as route 1 may not be available in a potential new tender in 2028.
Source: pv magazine Brazil
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