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China's huawei and UK's aggreko to develop storage system project in brazil's Amazon

Published by Global Banking & Finance Review®

Posted on March 2, 2026

2 min read

Last updated: March 2, 2026

China's Huawei and UK's Aggreko to develop storage system project in Brazil's Amazon - Finance news and analysis from Global Banking & Finance Review

Tags:Finance Banking Markets Energy Brazil

Quick Summary

Huawei will supply Aggreko with battery storage systems for what’s expected to be Brazil’s largest-ever microgrid-based energy storage project in Amazonas, costing about R$850 million (US $165.5 million), with initial operations anticipated in 2027–28.

Huawei and Aggreko to Develop Major Energy Storage Project in Brazil's Amazon

Overview of the Energy Storage Project

By Leticia Fucuchima

SAO PAULO, March 2 (Reuters) - China's Huawei will sell batteries to British business Aggreko for a renewable energy project in Brazil's Amazon region, in what is expected to become the country's largest-ever energy storage system, the two companies told Reuters.

Project Details and Implementation

Integration with Solar Plants and Microgrids

Huawei's batteries will run alongside solar plants set up in microgrids across Brazil's Amazonas state, in order to diversify Aggreko's power supply in the region away from polluting thermal plants.
Investment and Timeline

Aggreko's project will cost about 850 million reais ($165.55 million) and take up to three years for full implementation, with the first plants coming online between 2027 and 2028, said Cristiano Lopes Saito, Aggreko's director for sales to the utilities sector in Brazil.
Project Significance

"It's an extremely disruptive project, the largest microgrid project currently in the Americas," Barbara Pizzolato, off-grid director at Huawei in Brazil told Reuters.

Environmental and Social Impact

Reduction of Carbon Emissions

While the thermal plants will remain operational to guarantee supply, the project should allow for lower carbon emissions, the companies said.
Energy Supply to Local Communities

They forecast that the microgrids will supply energy to communities in 24 locations in Amazonas state, including in large cities such as Tefe, home to about 75,000 people.

Strategic Importance for Huawei and Brazil

Expansion of Huawei's Operations

The project is a boost to Huawei, as the Chinese manufacturer seeks to expand operations in Brazil amid expectations of an upcoming first-ever government auction for batteries.
Current State of Battery Energy Storage in Brazil

Existing Projects

Brazil is just starting to adopt battery energy storage systems and has only one large-scale project of this type, by the transmission company ISA Energia on the coast of Sao Paulo state.

($1 = 5.1345 reais)

(Reporting by Leticia Fucuchima; Editing by Nia Williams)

Key Takeaways

•Huawei and Aggreko are partnering to install battery-backed microgrids across Amazonas state to reduce reliance on thermal generation and cut emissions.
•The R$850 million (approx. US $165.6 million) project is slated for completion over three years, with first plants going online between 2027 and 2028.
•This initiative marks Brazil’s most ambitious energy storage effort to date, aligned with growing interest ahead of the country’s first dedicated battery energy storage auction.
•Brazil’s only existing large-scale battery storage system is by ISA Energia in São Paulo, highlighting how novel and pioneering this Amazon microgrid project is.

Frequently Asked Questions about China's Huawei and UK's Aggreko to develop storage system project in Brazil's Amazon

1What companies are involved in the new energy storage project in Brazil's Amazon?

China's Huawei and the UK's Aggreko are collaborating to develop the largest-ever energy storage system in Brazil's Amazon region.

2What technology will power Aggreko's new project in Amazonas state?

The project will use Huawei batteries alongside solar plants in microgrids to diversify power supply away from thermal plants.

3How much will the energy storage project cost and when will it be completed?

The project will cost around 850 million reais ($165.55 million) and is expected to be fully implemented within three years, with the first plants online between 2027 and 2028.

4What is the environmental impact of the Aggreko-Huawei project?

The project aims to reduce carbon emissions by replacing polluting thermal plants with cleaner microgrid solutions.

5Which communities will benefit from the new microgrids in the Amazon?

The microgrids will supply energy to 24 locations in Amazonas state, including cities such as Tefe.

Overview of the Energy Storage Project

By Leticia Fucuchima

Project Details and Implementation

Integration with Solar Plants and Microgrids

Huawei's batteries will run alongside solar plants set up in microgrids across Brazil's Amazonas state, in order to diversify Aggreko's power supply in the region away from polluting thermal plants.

Investment and Timeline

Aggreko's project will cost about 850 million reais ($165.55 million) and take up to three years for full implementation, with the first plants coming online between 2027 and 2028, said Cristiano Lopes Saito, Aggreko's director for sales to the utilities sector in Brazil.

Project Significance

"It's an extremely disruptive project, the largest microgrid project currently in the Americas," Barbara Pizzolato, off-grid director at Huawei in Brazil told Reuters.

Environmental and Social Impact

Reduction of Carbon Emissions

While the thermal plants will remain operational to guarantee supply, the project should allow for lower carbon emissions, the companies said.

Energy Supply to Local Communities

They forecast that the microgrids will supply energy to communities in 24 locations in Amazonas state, including in large cities such as Tefe, home to about 75,000 people.

Strategic Importance for Huawei and Brazil

Expansion of Huawei's Operations

The project is a boost to Huawei, as the Chinese manufacturer seeks to expand operations in Brazil amid expectations of an upcoming first-ever government auction for batteries.

Current State of Battery Energy Storage in Brazil

Existing Projects

Brazil is just starting to adopt battery energy storage systems and has only one large-scale project of this type, by the transmission company ISA Energia on the coast of Sao Paulo state.

($1 = 5.1345 reais)

(Reporting by Leticia Fucuchima; Editing by Nia Williams)

Key Takeaways

•Huawei and Aggreko are partnering to install battery-backed microgrids across Amazonas state to reduce reliance on thermal generation and cut emissions.

•The R$850 million (approx. US $165.6 million) project is slated for completion over three years, with first plants going online between 2027 and 2028.

•This initiative marks Brazil’s most ambitious energy storage effort to date, aligned with growing interest ahead of the country’s first dedicated battery energy storage auction.

•Brazil’s only existing large-scale battery storage system is by ISA Energia in São Paulo, highlighting how novel and pioneering this Amazon microgrid project is.

Frequently Asked Questions