French utility Engie is evaluating the integration of storage systems or bitcoin mining data centers at its new solar plant in Brazil, Assu Sol. The move aims to enhance the facility's profitability and address economic challenges posed by grid curtailments.
Eduardo Sattamini, Engie's country manager for Brazil, stated that these systems could reduce curtailments, which are negatively impacting the economics of Assu Sol, the company's largest solar project globally. "We are looking at some possible offtakers," Sattamini mentioned.
The Assu Sol plant, located in northeast Brazil, boasts 895 MWp of installed capacity and recently began full commercial operations. However, its production has been curtailed to balance Brazil's power grid, a common issue for renewable energy sources in the region.
Curtailment, the mandated reduction of electricity generation from renewable sources when the grid cannot absorb the output, has become a significant challenge for Brazilian solar and wind farms since 2023, resulting in substantial financial losses. This issue stems from a surge in new renewable plants, coupled with sluggish demand growth, infrastructure limitations, and the rapid expansion of distributed generation, including rooftop solar.
Engie is exploring options to create local demand and manage the curtailment issue at Assu Sol, considering data centers for bitcoin mining or energy storage. Sattamini indicated that these implementations are not immediate, estimating a timeline of a couple of years for deployment.