On Thursday, September 10, 2026, the Brazilian Electricity Regulatory Agency (ANEEL) brought together its board of directors and representatives of the winning companies of two auctions held this year at its headquarters in Brasília to sign the corresponding contracts. The documents signed refer to the Capacity Reserve Auction in the form of Power (LRCAP No. 2/2026) and to the second stage of Transmission Auction No. 1/2026. The ceremony was attended by Director-General Sandoval Feitosa, Director Ludimila Lima and Director Willamy Frota, as well as staff, investors and power sector players. The event was streamed on the agency's YouTube channel.
What was contracted in LRCAP No. 2/2026
The capacity reserve auction is the instrument used by power sector planning to ensure that the system has power available at times of peak demand, not just energy throughout the year. In this type of contract, what is remunerated is the ability to deliver power whenever the operator needs it.
In this edition, contracting was restricted to the expansion of five hydroelectric plants. Together, these expansions will add 2.5 GW of power availability to the National Interconnected System (SIN). With the signing, the companies are now formally obligated to keep this power available to the grid under the agreed terms.
The four lots in the second stage of the Transmission Auction
On the transmission side, the second stage of auction No. 1/2026 awarded four new lots of projects located in Mato Grosso, Mato Grosso do Sul and São Paulo. The concession contracts define the winners' responsibilities for building, operating and maintaining the new facilities that will become part of the basic grid.
- Estimated investment: R$ 1.75 billion;
- Average discount: 53.20%;
- Potential job creation during construction: more than 4,000 positions.
The high discount indicates strong competition among bidders and reduces the revenue to be paid to concessionaires over the concession term, which tends to ease the cost of grid expansion for consumers.
Why the ceremony matters
The signing closes the formal cycle of both auctions. From here on, commitments are no longer bids but contractual obligations with deadlines and penalties. For the market, this provides predictability about which assets will actually enter the system and helps map where gaps in power and transmission infrastructure remain to be addressed in future auctions.
What changes in practice for the BESS market
The key point for those working with battery storage is straightforward: the 2.5 GW of LRCAP No. 2/2026 was entirely met by hydroelectric expansions. In other words, this share of firm power demand was not directed to BESS, which are still waiting for a dedicated auction or one with rules allowing their participation.
- Developers: should keep projects mature in terms of permitting, land and grid access studies, so they are ready when a battery-compatible auction is called. Competition with existing hydro plants shows that the cost of the power offered will be compared with alternatives already installed.
- EPCs: the lack of immediate contracting calls for caution in sizing teams and schedules, but it is a good time to standardize solutions and reduce deployment costs.
- Manufacturers and suppliers: demand contracted through capacity auctions has not yet materialized for batteries; partnerships with developers and equipment certification for the Brazilian market remain strategic preparation.
- Transmission and connection: the new lots expand the grid in Mato Grosso, Mato Grosso do Sul and São Paulo. Tracking the evolution of connection margin in these and other regions helps identify points where storage can add value to system operation.
In short, the outcome reinforces that the role of batteries in Brazil's power capacity planning depends on upcoming regulatory decisions, and those who arrive prepared for these auctions will have an advantage.
Original source: ANEEL — ANEEL assina novos contratos de geração e transmissão de energia elétrica