Report: Brazil relies on fossil fuels to ensure flexibility in the electricity system.

The report shows that the Brazilian power grid is facing challenges. During off-peak hours, there is an excess of electricity, while during peak hours, there is a shortage of electricity supply, leading to the country's power market simultaneously facing the risks of increasing waste of electricity and power shortages. Despite energy prices frequently soaring to regulatory limits, investment in renewable energy continues to decline, indicating that the current price signals are not yet sufficient. To address these crises, Brazil has recently signed the largest ever stable capacity contract in a single bidding round, with the majority coming from fossil fuels. On the other hand, demand-side response is gradually but slowly expanding, and the momentum for energy storage development is also increasing.