The Brazilian Photovoltaic Solar Energy Association (ABSOLAR) presented, on Tuesday, September 1, 2026, a set of suggestions for the Capacity Reserve Auction for Storage Systems (LRCAP SAE). The proposals were delivered by the association's executive president, Rodrigo Sauaia, at a public hearing of the National Electric Energy Agency (Aneel) in Brasília. As this is the first auction of its kind in the country, the rules under discussion will define the conditions for large battery energy storage systems (BESS) to enter the Brazilian power mix.
Batteries alongside solar and wind plants
The LRCAP is the auction model in which the power system contracts available capacity to be dispatched when needed, not just energy. In the case of storage, batteries act as a flexible reserve, able to absorb energy from the grid and return it according to demand.
The core of Sauaia's remarks was the treatment given to co-located and associated projects, that is, batteries installed at the same site as, or linked to, generation plants. ABSOLAR asked that the restrictions in the proposal be revised to allow broader combinations of storage with sources such as solar photovoltaic and wind. According to the association, this would open room for shared infrastructure, better use of invested capital, lower costs and more competitive projects in the auction.
Timelines, charges and financial guarantees
Another issue raised was the risk of misalignment between the timing of regulatory procedures and the plants' commissioning schedule. To avoid delays, the association suggested a regulatory fast track, built in coordination among Aneel, ONS, EPE, CCEE and other bodies, that would also cover environmental licensing.
On the charge, Sauaia described developers' concern over the costs involved and called for a deeper discussion before deciding which party will bear each portion. The association believes there is still time to reach a solution before the projects begin operating and reiterated its request to repeal the provision included by Law No. 15,269/2025.
ABSOLAR also addressed the performance bond, the deposit required from the winner as security that the contract will be fulfilled. The recommendation is that Aneel replace the PDE 2030 references with the more up-to-date PDE 2035 data when calculating these amounts. In the association's view, the change would make the guarantees less burdensome and avoid driving away potential bidders.
Compensation for losses and PLD exposure
On compensation for generation losses, the proposal is that developers be allowed to sign bilateral energy contracts to cover these volumes, instead of being fully exposed to fluctuations in the PLD, the settlement price for differences used in the short-term market. For ABSOLAR, this alternative would bring more cash flow predictability, reduce investor risk and could result in lower bids, with a positive effect on affordable tariffs.
What changes in practice for the BESS value chain
The suggestions still depend on Aneel's analysis, but they point to issues that deserve attention from those planning to bid in or supply the auction:
- Developers: if the rules for co-located projects are relaxed, solar and wind farms could serve as a base for new battery projects, leveraging existing land, substations and grid connections. It is worth mapping assets with this potential right away.
- EPCs: an accelerated regulatory and licensing process tends to compress schedules, requiring tighter engineering, procurement and construction planning.
- Manufacturers and suppliers: lower guarantees and reduced PLD exposure may increase the number of bidders, which translates into more demand for batteries, inverters, power conversion systems and energy management systems.
- Investors and lenders: the decision on the charge and the possibility of bilateral contracts directly affect risk modeling and project costs.
Following the outcome of this hearing is essential to fine-tune strategies, since the final rules of the first storage LRCAP are expected to serve as a benchmark for future auctions.
Original source: ABSOLAR — ABSOLAR debate LRCAP 2026 em Audiência Pública da Aneel