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Brazil energy storage auction: Absae urges MME to act now

At an MME and BNDES debate, Absae called for an immediate energy storage auction to address the capacity deficit Brazil expects in 2027, citing fast BESS rollout.

Published on · ABSAE

The Brazilian Association of Energy Storage Solutions (Absae) used the debate organized by the Ministry of Mines and Energy (MME) and the National Bank for Economic and Social Development (BNDES), held on Monday, December 8, to press for faster procurement of batteries by the power sector. The chairman of the association's Board, Markus Vlasits, argued that the country should hold a storage auction without further delay, citing the capacity deficit projected for 2027. The meeting brought together government, experts and market players to discuss regulation, ongoing projects and expectations for 2026.

A year of progress for storage

According to the assessment presented by Vlasits, 2025 brought significant achievements for the battery energy storage systems segment, known by the acronym BESS. Among the milestones cited are:

  • the isolated systems auction, which opened the door to storage solutions in locations not connected to the main grid;
  • the enactment of Law No. 15,269/2025;
  • the rapid expansion of batteries in commercial and industrial applications;
  • ANEEL Public Consultation No. 39, part of the regulatory effort to frame the technology.

For the executive, despite the obstacles that remain, storage is quickly gaining ground across different uses in Brazil. The view is that the technology has already left the experimental phase and now needs a procurement instrument at scale.

Why Absae speaks of urgency

The association's central argument combines two factors: the system's needs and the speed at which batteries can be deployed. With a capacity shortfall forecast for 2027, there is little time to procure and build new resources. According to Vlasits, battery projects can be ready within 12 to 18 months, a timeframe that makes them natural candidates to meet this type of demand.

The executive made it clear that the auction format is secondary. The auction could be structured on the generation side, through transmission or through another modality, as long as it takes place. In his view, the country cannot afford to spend another year or year and a half discussing how to integrate the technology, because the power system needs it.

It is worth remembering that capacity auctions procure the availability to deliver energy at times of peak system demand, not just the volume of energy produced over time. Batteries fit this logic because they can store energy and dispatch it quickly when called upon.

Cost transparency for consumers

Another point raised by Absae was the importance of policies that make system costs visible. The proposal is for consumers and users to clearly understand the impact each consumption profile has on the grid. This kind of signal tends to reward solutions capable of shifting consumption and reducing peaks, such as behind-the-meter storage at businesses and industrial facilities.

What changes in practice for the BESS supply chain

Although no storage auction has been defined yet, Absae's stance in the debate with MME and BNDES indicates that pressure for an auction tied to the 2027 capacity deficit is likely to grow. For those working in the sector, some moves make sense:

  • Developers: structure projects with a realistic delivery schedule of 12 to 18 months, with permitting, land and grid access underway, so as not to miss a possible procurement window.
  • EPCs: prepare execution capacity for short-deadline projects and standardize solutions that reduce assembly and commissioning time.
  • Manufacturers and suppliers: assess equipment availability and logistics to meet demand that may be concentrated in a short period if the auction is called.
  • All links in the chain: follow developments in ANEEL Public Consultation No. 39 and Law No. 15,269/2025, which will shape the rules of the game.

The commercial and industrial market, cited as one of the fastest-growing fronts in 2025, remains an alternative to keep the project pipeline active while centralized procurement does not materialize. Those who reach an eventual auction with mature projects will have a competitive advantage.

Original source: ABSAE — Absae reforça urgência do leilão de armazenamento em debate do MME e BNDES

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