What Brazil's regulator (ANEEL), planning agency (EPE), grid operator (ONS) and industry associations publish about battery storage, summarized in English with the practical takeaway. Updated daily.
The National Electric System Operator released a Technical Note with the remaining connection capacity figures for the Capacity Reserve Auction (LRCAP) aimed at battery storage systems. According to the document, published on Wednesday, September 30, more than 80% of the points registered by developers have available margin to receive these projects.
In practice: BESS developers planning to compete in the LRCAP should consult the Technical Note and check the margin at their registered points, and may relocate projects lacking capacity.
ABSAE rebuts criticism from the thermal power sector that batteries do not ensure voltage and frequency stability or sufficient short-circuit current, after the MME included storage systems in the Capacity Reserve Auctions on a schedule through 2029. The association notes that MME Normative Ordinance No. 136/2026, which governs the December battery auctions, requires grid-forming inverters in line with a joint ONS/EPE technical note, with response to phase jumps within 16 ms, frequency reaction within 200 ms, synthetic inertia and a black start option. It also highlights that the locational bonus uses the MISCR indicator to steer projects toward weak grid points, citing experiences from the United Kingdom and Australia.
In practice: BESS developers and suppliers will need to offer grid-forming inverters certified to ONS/EPE requirements and target weak-grid substations to obtain the locational bonus.
MME Normative Ordinance 143/2026, published in an extra edition of the DOU on September 29, sets capacity reserve auctions in the form of power for 2027, 2028 and 2029, always in the second half of the year and subject to the annual planning studies. ABSAE praised the predictability but criticized the fact that only batteries are funded exclusively by generators, calling for the repeal of § 6 of art. 3-A of Law 10.848/04 through the urgent approval of PL 3716/26.
In practice: BESS developers and suppliers gain an annual sequence of auctions through 2029 to prepare projects and supply chains, although they still face unequal cost allocation compared with thermal plants.
ONS, ANEEL and EPE jointly published a technical note with the amounts of capacity still available on the grid to connect energy storage systems that will compete in the 2026 capacity reserve auctions. The document can be consulted on the official websites of the three institutions.
In practice: BESS project developers now have official grid connection margin data to choose access points and structure competitive bids in the 2026 auctions.
At a ceremony at ANEEL headquarters in Brasília on 9/10/2026, the agency's board and the winning companies signed the contracts for LRCAP No. 2/2026 and for the second stage of Transmission Auction No. 1/2026. The capacity auction contracted the expansion of five hydropower plants, adding 2.5 GW of available capacity to the SIN. The transmission stage awarded four lots in Mato Grosso, Mato Grosso do Sul and São Paulo, with estimated investment of R$ 1.75 billion, an average discount of 53.20% and more than 4,000 jobs expected.
In practice: Because LRCAP No. 2/2026 contracted 2.5 GW solely through hydropower plant expansions, this demand for firm capacity was not met by batteries, which still depend on future auctions.
On September 10, ANEEL opens Public Consultation No. 032/2026, which will receive suggestions until October 26 on the draft tender notice for Transmission Auction No. 01/2027, scheduled for April 30, 2027 at B3, with 12 lots, R$ 12.9 billion in investments, 3,245 km of lines and 1,386 MVA of transformation capacity across 13 states. Lot 5 includes the first transmission battery energy storage system in the SIN, in Cruzeiro do Sul (AC), with 100 MW/200 MWh, grid-forming technology, an 18-year contract and a 36-month construction period. After the consultation, the tender notice goes to the agency's Board of Directors and, if approved, proceeds to the TCU in December.
In practice: BESS suppliers and integrators gain the first transmission tender in the SIN: 100 MW/200 MWh grid-forming in Acre, an 18-year contract and 36-month construction.
ANEEL has launched Public Consultation 033/2026 to revise Module 3 of PRODIST, creating an integrated treatment for distributed energy resources such as solar generation, storage, electric vehicles and flexible loads, with requirements for monitoring, communication, response to commands, protection and control of injected power. The proposal was prepared by ONS together with the agency and researchers from UFSM, UFU and Unioeste, and sets requirements proportional to the size and impact of each resource, without imposing brands or equipment. Contributions may be sent by email for 60 days, from September 10 to November 9, 2026.
In practice: Suppliers of distribution-connected batteries will need to provide communication, monitoring and response functions for distribution utilities' commands, and may submit input until November 9, 2026.
At an ANEEL public hearing in Brasília, Rodrigo Sauaia, executive president of ABSOLAR, presented proposals for the country's first capacity reserve auction aimed at storage systems. Among them are easing restrictions on projects co-located and associated with solar and wind plants, creating an accelerated regulatory and licensing procedure involving ANEEL, ONS, EPE and CCEE, and repealing the charge provision introduced by Law No. 15,269/2025. The association also requested that performance bonds be calculated based on PDE 2035 rather than PDE 2030, and that generation losses may be covered by bilateral contracts, reducing exposure to the PLD.
In practice: If accepted, the proposals would reduce financial guarantees and exposure to the PLD, while allowing batteries to share infrastructure with existing solar and wind plants.
On September 1, in Brasília, ANEEL held Public Hearing No. 005/2026, chaired by director Gentil Nogueira, to improve the draft tender documents and CRCAP contracts for Auctions No. 05 and No. 06/2026, with around 70 in-person participants, 200 online and eleven speakers. The National Storage auction, scheduled for December 2, requires batteries manufactured in Brazil, while the General Storage auction, on December 4, has no such requirement. The contracts will be valid for 15 years starting August 1, 2028, and contributions may be submitted by email until September 14.
In practice: BESS developers have until 9/14 to propose adjustments to contract remuneration, operational requirements and penalties, as they prepare projects to enter operation in August 2028.
An article by Greener points out that battery energy storage is moving out of the realm of trends and becoming part of commercial discussions and strategic planning at power sector companies. The text proposes looking beyond the equipment itself, discussing how to convert BESS systems into concrete benefits for the end customer; the full content of the page was not available.
In practice: BESS suppliers and integrators will need to structure offerings focused on the value delivered to the customer, rather than just selling battery equipment.
An article by Greener notes that the Brazilian energy storage market is leaving the experimental phase and entering a stage in which demand, supply and technical requirements are aligning more concretely. In this scenario, equipment compliance with Inmetro rules is carrying more weight in converting customer interest into actual sales.
In practice: BESS suppliers and integrators will need to demonstrate Inmetro compliance to close sales, making certification a competitive differentiator in negotiations.
Rodrigo Sauaia, CEO of ABSOLAR, spoke at a debate session in the Senate Plenary on renewables and the energy transition, noting that solar accounted for 77% of the renewable capacity added in 2025 and holds 27.4% of the country's installed capacity. He advocated reducing the taxation of over 80% on storage systems, easing solar's access to Reidi, and splitting the cost of battery auctions among all agents, as is done in fossil thermal power auctions.
In practice: BESS developers and suppliers gain institutional advocacy to cut the tax burden of over 80% and share the cost of battery auctions.
Greener published a retrospective article on the 18 editions of its study, which has tracked Brazilian distributed generation over nine years. According to the text, the segment is no longer centered solely on installing photovoltaic systems and has become an ecosystem that includes storage, electric mobility, the Free Energy Market and digital services.
In practice: The inclusion of storage in the distributed generation portfolio expands demand for batteries integrated with solar systems, opening opportunities for BESS suppliers and integrators.
Australia has launched Round 10 of the Capacity Investment Scheme (CIS), which aims to contract 4 GW and 16 GWh of clean dispatchable capacity in the NEM, with bids accepted from June 23 to August 18, 2026 and indicative results in December, possibly the program's last storage round. In Round 8, 73 bids totaled 76.4 GWh against a 16 GWh target, and 15 storage projects were selected, totaling 4.2 GW and 16.1 GWh, which led the government to raise the dispatchable target from 9 GW to 14 GW in July 2025. The contracts work with a revenue floor and ceiling for up to 15 years, counted from the start of operation, and selection weighs reliability, deliverability and social commitments, not just price.
In practice: BESS developers in Brazil gain a reference for contracts with a revenue floor and ceiling and delivery criteria to advocate for in the design of the first battery auction.
According to Greener, the volume of battery energy storage systems (BESS) sold in Brazil in 2025 matched the total of the previous five years, signaling a turning point in the market. The analysis indicates that the commercial and industrial (C&I) segment is likely to drive the next stage of the technology's expansion in the country.
In practice: BESS suppliers and integrators should prioritize offerings for commercial and industrial customers, the segment identified as the driver of the next phase of sales in the country.
On June 26, 2026, the European Union formalized the Tripartite Agreement for Energy Storage, bringing together the European Commission, Member States, financial institutions and industry to raise the bloc's storage capacity from 55 GW to 200 GW by 2030. The pact foresees around 45 GW installed between 2026 and 2028, a pace of 30 GW per year pledged by the countries, and storage accounting for approximately 10% of peak demand. The EIB is considering including storage in a €500 million program for corporate PPAs and extending €1.5 billion in guarantees to the supply chain.
In practice: ABSAE points to the December auctions as a concrete opportunity for BESS developers in Brazil, but calls for a continuous schedule, grid access rules and remuneration for services.
Aneel released Joint Technical Note 10/2026-SEL-SGM, which proposes a public consultation, from July 30 to September 14, 2026, on the tender notice and annexes of the first capacity reserve auction focused on batteries. The proposal sets 15-year contracts signed by CCEE, prohibits co-located projects and provides for a bid bond of R$ 100 thousand per MW and a performance bond of R$ 1 million per MW. It also waives prior experience requirements for participants, bars changes in corporate control before commercial operation and requires an Installation License by February 7, 2027.
In practice: BESS developers will need to structure standalone projects dispatched by ONS and set aside cash for guarantees of up to R$ 1 million per installed MW.
In a videoconference held on July 22, Rodrigo Sauaia and ABSOLAR's storage leaders discussed with Mariana Espécie, secretary at the MME, the LRCAP battery auctions, scheduled for December 2 and 4, and Normative Ordinance No. 140/2026, which addresses compensation for renewable generation curtailment between September 2023 and November 2025. The ministry assured that the auction schedule will be maintained despite the debate over repealing the provision of Law No. 10.848/2004 that assigns the cost of contracted batteries solely to generators. It also stated that the physical guarantee methodology for plants affected by curtailment will be revised before going to public consultation.
In practice: BESS developers and suppliers should keep preparing for the December 2 and 4 auctions, as the MME confirmed the dates will not be postponed.
In a letter dated July 16, 2026 to ANEEL's Auctions Secretariat, ABSAE submitted preliminary contributions to the tender notice and the draft CRCAP for the storage auctions provided for in MME Normative Ordinance No. 136/2026, addressing topics such as guarantees, prior experience, settlement in the MCP, round-trip efficiency, losses, penalties, local content and schedule. Among its proposals, the association calls for a Bid Guarantee of 1% and a Performance Guarantee of 5% of the investment declared to EPE, instead of the R$ 30,000 per MW used in LRCAP 02 and 03/2026. It also suggests requiring prior experience in batteries, generation or transmission at 138 kV and above, as well as settling charging and discharging energy on behalf of CONCAP to avoid undue taxation.
In practice: If accepted, the proposals would raise guarantees and require proven experience from BESS bidders, filtering out opportunistic players and reducing the tax burden on charging energy.
A report by Revista Potência, republished by Absolar, points out that the expansion of solar energy in Brazil, with around 105.9 million tonnes of CO2 avoided and more than 1.9 million jobs created since 2012, has not been matched by distribution infrastructure. Distributed micro- and mini-generation already totals around 42.3 GW, according to Aneel, and the photovoltaic sector added 10.6 GW to the system last year, a volume Absolar expects to repeat in 2026, close to Belo Monte's 11.2 GW.
In practice: The mismatch between the rapid expansion of distributed solar and the distribution grid opens room for batteries that absorb surpluses and relieve local bottlenecks.
Congressman Arnaldo Jardim (Cidadania/SP) filed bill PL 3716/2026 on 7/15, proposing that the cost of procuring storage systems, currently borne solely by generators, be split between end consumers and generators, a rule he considers unconstitutional. The proposal is backed by Absae, Absolar, Apine, Abeeólica and Abiape, which point to legal uncertainty for the battery auctions scheduled for December and the risk of higher energy prices for consumers.
In practice: If approved before the December auction, the bill reduces legal uncertainty over the funding of contracted batteries and aligns their rules with those of other capacity solutions.
The 2035 Ten-Year Energy Expansion Plan, prepared by EPE under the coordination of the MME, forecasts that storage will grow from 2028 onward and reach 6.6 GW (19.6 GWh) by 2035, while total installed capacity rises from about 249 GW to 359 GW. The estimate considers only centralized expansion to cover the capacity deficit and identifies four-hour systems as suitable for absorbing solar surpluses between 8 a.m. and 3 p.m. and delivering power between 7 p.m. and 11 p.m. The plan cites the Capacity Reserve Auctions as the contracting route and estimates costs of around R$ 1,920/kWh for 3 MWh commercial and industrial systems and R$ 3,500/kWh for residential systems.
In practice: BESS developers should prioritize well-located four-hour projects on the grid, targeting capacity auctions with demand expected from 2028 onward.
Argentina has held two storage auctions: AlmaGBA (2025), aimed at the Buenos Aires metropolitan area, contracted 667 MW against a 500 MW target, and AlmaSADI (2026), focused on the interconnected system, awarded 700.5 MW to 20 projects from five companies after receiving 235 bids totaling 8,338 MW. The price cap fell from US$15,000 to US$12,500/MW-month, and the lowest winning bid in AlmaSADI was around US$7,632/MW-month including incentives, a 32.68% drop compared to the previous auction. The projects require a minimum of four hours of discharge, reserve 30% of capacity for primary frequency regulation and must enter operation between 2027 and 2029, dispatched by CAMMESA.
In practice: Brazilian BESS developers gain a concrete price benchmark, around US$7,600/MW-month, and requirements such as four hours of discharge to structure bids in national auctions.
An article by Greener identifies 26 risks that may determine whether projects in the first Capacity Reserve Auction for Storage (LRCAP Armazenamento 2026) will be financeable. According to the text, the debate about the auction has focused on battery prices, bid competitiveness and access to financing, leaving other risk factors in the background.
In practice: BESS developers competing in LRCAP 2026 will need to map risks beyond battery prices to secure project financing.
On June 24, 2026, ANEEL published Normative Resolutions 1,161 and 1,162, concluding Public Consultation 39/2023 and regulating Law 15,269/2025: the first sets authorization rules for standalone and co-located storage systems, and the second incorporates storage into the Transmission Rules, including access conditions. Key points include the possibility of reducing the injection network usage amount by up to 30% at plants with co-located batteries (with the first reduction free of charge under existing contracts), zero consumption MUST/MUSD for systems fully dispatched by the ONS, and the non-application of sector charges on gross consumption. Ancillary services, revenue stacking and detailed remuneration still depend on future regulation.
In practice: BESS developers gain clear authorization rules, exemption from charges on stored energy and a cut of up to 30% in MUST/MUSD at co-located plants, but ancillary revenues remain undefined.
In June 2026, the author of the Greener article traveled to China with an agenda dedicated to the energy storage sector. During the visit, he went to major battery manufacturers and observed up close how the Chinese storage market has been evolving. The goal was to understand the direction of the Chinese industry in the segment; the rest of the text was not available on the page.
The association will take part in the event from June 23 to 25 at Marina da Glória, in Rio de Janeiro, with Fabio Monteiro Lima speaking about the legal framework and the obstacles to deploying energy storage in Brazil. The event, held in partnership with MIT and curated by MIT Technology Review Brasil, will feature in this edition the Energy Summit Expo, with thematic districts, Startup Village, Science Village and Matchmaking Arena.
In practice: BESS developers and suppliers will have at the event a space to follow the debate on the regulatory framework for storage and to seek business partnerships.
Brazil began 2026 facing a mismatch: despite having one of the largest renewable fleets in the world, the power system faces growing difficulties with operational flexibility as solar and wind sources expand. In response, the country has regulated battery storage, providing for two auctions with 15-year contracts.
In practice: 15-year contracts in two auctions provide revenue predictability to finance BESS projects and secure battery supply agreements in Brazil.
Markus Vlasits, who chairs ABSAE, was included by Full Energy magazine in its list of the most influential leaders in the Brazilian power sector. In the interview given to the publication, he pointed to growing renewable curtailment, the lack of capacity during the evening peak and the grid's greater vulnerability as problems that storage can solve quickly. As priorities, he advocated regulatory adjustments, economic signals for contracting capacity and ancillary services, and greater predictability to attract investment.
In practice: BESS developers gain arguments to push for remuneration rules for capacity and ancillary services, but contracting still depends on these regulatory adjustments.
In an article, Marcelo Rodrigues of UCB Power argues that Brazil, with more than 3.6 million solar rooftops, should lead Latin America in the adoption of residential batteries, citing Australia, with more than 250,000 systems installed in 2025, and Octopus Energy's battery-as-a-service model in the United Kingdom. According to the ABSOLAR studies mentioned, equipping 20% of distributed generation with storage would create more than 10 GWh of capacity, and more than 7 million apartments represent a market for anti-blackout kits. The author calls on ANEEL and the MME to establish rules for virtual power plants, recognition of the value of storage, and fast, digital equipment certification.
In practice: Residential battery suppliers gain a potential market of more than 10 GWh of distributed capacity, but depend on ANEEL rules for aggregation into virtual power plants and fast certification.
In a joint statement, ABSAE and ABSOLAR assessed the new price caps for the Capacity Reserve Auction released by the Ministry of Mines and Energy (MME), which updated the economic parameters for thermal and hydroelectric plants. According to the associations, the values better reflect the real costs of the capacity service and make batteries competitive in the auction, provided that procurement rules are equal across technologies. The document also advocates technological neutrality and highlights storage as a way to reduce charges and protect consumers.
In practice: BESS developers and suppliers gain room to offer competitive prices in the LRCAP, conditional on procurement rules equal to those for thermal and hydroelectric plants.
ANEEL, at the request of the MME, made official on 02/13/2026 the price caps for LRCAP-2026: R$ 1.4 million/MW.year for hydropower plants, R$ 2.25 million/MW.year for existing thermal plants and R$ 2.9 million/MW.year for new thermal plants. Based on a study by Aurora Research, ABSAE calculates that batteries could operate with a fixed revenue of around R$ 1.25 million/MW.year, and that contracting 2 GW of BESS would generate annual savings of R$ 3.2 billion in charges. The association praised the dedicated storage auction scheduled by June and is calling for a volume above 2 GW, a review of the ERCAP cost allocation, ANEEL regulation without double grid charges, and access to REIDI.
In practice: BESS developers gain a competitive revenue benchmark for the storage auction by June, but depend on 15-year contracts, REIDI and an end to the double grid tariff.
Markus Vlasits, who chairs ABSAE, told O Globo that the capacity reserve auction with batteries has become indispensable to reduce the risk of blackouts during peak consumption hours, due to the rapid expansion of intermittent renewables. According to him, battery energy storage systems could mobilize around R$ 80 billion in the country by 2034, and the first auction dedicated to the technology is expected to unlock new projects.
In practice: BESS developers and suppliers gain the prospect of a market worth around R$ 80 billion by 2034, contingent on the holding of the first battery-specific auction.
Absae will be at Energyear Brasil, an event held in São Paulo on February 4 and 5, with executive director Fábio Lima moderating, on the second day, a debate among manufacturers and integrators on the deployment of large-scale batteries in the country. The association's presence comes amid expectations for the energy storage auction, and members receive a 10% discount on registration.
In practice: BESS manufacturers and integrators gain a space to present solutions and experiences to potential clients ahead of the expected storage auction.
At a debate organized by the MME and BNDES on Monday (8), ABSAE Board Chairman Markus Vlasits called for an immediate storage auction, whether in the generation or transmission format, in view of the power capacity deficit forecast for 2027. He noted that batteries can be deployed in 12 to 18 months and cited as 2025 advances the isolated systems auction, Law No. 15,269/2025, expansion in the commercial and industrial segments, and ANEEL Public Consultation No. 39.
In practice: BESS developers should prepare projects for delivery within 12 to 18 months, targeting a possible auction aimed at the 2027 power capacity deficit.
ABSAE held its 2025 Members' Meeting with two panels: one on the effects of Law 15,269/2025 (formerly MP 1304) on battery business models, with Fábio Lima and Raphael Gomes, and another on the 2026 Capacity Reserve Auction. In the second debate, Sumara Ticom, from ONS, advocated for the deployment of storage in distributed generation, in industry and as a transmission asset, alongside Markus Vlasits, chairman of the entity's Board.
In practice: ONS support for batteries in transmission, distributed generation and industry broadens the commercial fronts for developers beyond the 2026 capacity auction.
Absae is supporting Casa Saberes da Amazônia, a space organized by 3e Soluções in Belém (PA) that, from November 13 to 20, during COP30, will host six panels with representatives from the power sector, government and the ESG agenda. The debates will address energy poverty, universal access to energy in the Amazon, decarbonization, the circular economy and the inclusion of local communities. Board member Marcelo Rodrigues, also VP of UCB Power, leads the participation and highlights storage as a strategic piece for a clean and resilient energy model in the region.
In practice: BESS suppliers gain a showcase in Belém to position batteries as a solution for universal access and for fighting energy poverty in isolated Amazonian communities.
Absae was interviewed by PV Magazine Brasil for a report assessing the gains and caveats of Conversion Bill No. 10/2025 (PLV 10) for battery storage. The association considers a dedicated regulatory framework decisive for the sector, but calls for legal certainty and competitiveness in its implementation. The organization is following the bill's progress, submitting technical contributions and advocating the full integration of storage into the power system.
In practice: BESS developers and suppliers gain the prospect of dedicated rules with PLV 10, but the legal certainty of projects still depends on how implementation is regulated.
Summaries and translations generated automatically by ENLACE from the original Portuguese publications. For the full, official content, always check the source.
