In 2026, Argentina completed its second auction dedicated to battery energy storage systems (BESS), AlmaSADI. It followed AlmaGBA, held in 2025 for the Buenos Aires metropolitan area. The analysis published by ABSAE shows a sharp drop in prices from one auction to the next and much more intense competition. For storage project developers in Brazil, the two processes serve as a nearby laboratory for contract design and price formation.
Two auctions, two different problems
AlmaGBA was created to address supply risks and grid constraints in Greater Buenos Aires. The initial target was 500 MW. The auction attracted 27 projects from 15 companies, totaling 1,347 MW. The initial award reached 667 MW, and the final contracted capacity was 713 MW. The contracts run until 2041 or for 15 years. The target commercial operation date is January 1, 2027, and the deadline to commission all equipment is December 31, 2028.
AlmaSADI, in turn, targeted the national interconnected system (SADI). The goal was to relieve generation and renewable integration bottlenecks, strengthen reliability, cover demand peaks and provide capacity and reserve services. Demand was much higher: 235 bids from 37 companies, totaling 8,338 MW, nearly 12 times the 700 MW target. In the end, 700.5 MW were awarded, spread across 20 projects from five companies in seven regions. The maximum deadline to begin operation was extended to the end of 2029, with partial commissioning accepted and a bonus for those who bring forward the start of operation.
How prices fell
The price cap went from US$15,000/MW-month in AlmaGBA to US$12,500/MW-month in AlmaSADI. The drop in the values actually contracted was even greater.
- Weighted average price: from about US$11,682/MW-month to US$8,427/MW-month, a decline of nearly 28%.
- Lowest awarded price: from US$10,161/MW-month to US$7,632/MW-month.
- Highest awarded price: from US$12,815/MW-month to US$9,705/MW-month.
AlmaSADI also introduced an incentive mechanism. Bids below the weighted average received an addition of 25% of the difference between the bid and that average, which was US$8,338.54/MW-month. The lowest bid, around US$7,397/MW-month, gained about US$235/MW-month and closed at US$7,632/MW-month. According to ABSAE, this represents a 32.68% reduction compared with the previous auction. The explanations cited include the global decline in battery costs, lessons learned from the first auction, greater contractual predictability and fierce competition.
Technical requirements and ancillary revenues
Both tenders require the contracted capacity to be delivered for at least four consecutive hours. In addition to the availability payment, discharged energy earns US$10/MWh. On the other hand, the difference between the energy consumed during charging and the energy returned during discharge, which includes losses and auxiliary consumption, is charged at US$20/MWh. Efficiency is thus not set by regulation but becomes an economic signal for the developer.
In AlmaSADI, recharging must normally take place within six hours, and may take up to eight. Dispatch is the responsibility of CAMMESA, with a limit of 180 full cycles per year. At least 30% of the capacity is reserved for primary frequency regulation, paid at US$5/MWh. From 2037 onward, energy, the consumption charge and regulation will follow the spot price.
What changes in practice for the BESS sector
For Brazilian developers, Argentina offers a concrete regional benchmark, around US$7,600/MW-month, to test project viability and calibrate bids in national capacity auctions such as the LRCAP, which contracts capacity available to the system. It also shows that clear rules and long-term contracts attract strong competition and squeeze margins.
For EPCs, staggered deadlines, partial commissioning and early-operation bonuses favor those who can meet schedules with room to spare. For manufacturers and suppliers, the four-hour discharge requirement, the reserve for frequency regulation and the economic penalty on losses reward efficient batteries with good cycling performance and fast-responding inverters. Those who structure bids around multiple revenue streams, not just the capacity payment, are likely to be more competitive in Brazilian auctions.
Original source: ABSAE — LEILÕES DE BATERIAS NA ARGENTINA MOSTRAM A COMPETIVIDADE DE BESS PARA SEGURANÇA ENERGÉTICA NA AMÉRICA LATINA