On Tuesday, October 13, 2026, Brazil's Chamber of Deputies approved urgency status for the bill by Congressman Arnaldo Jardim (Cidadania-SP) that redefines who pays for battery procurement in the power sector. The proposal splits these costs between energy generators and consumers. Currently, under ANEEL regulations, they fall solely on sector agents. Despite the urgency, the floor debate on the merits is expected to take place only after the second round of the presidential elections, scheduled for October 25. The discussion carries extra weight because battery auctions are planned for December this year.
What the bill proposes
With urgency approved, the text joins the priorities of the legislative agenda and can go to the floor without completing all the regular committee stages. The legal mechanism involves a 2004 law: the bill amends a repeal made to that statute and establishes that the cost of battery procurement be shared between those who generate and those who consume electricity.
According to the author, the current ANEEL rule, which concentrates funding on sector agents, causes distortions in how resources are allocated. The bill aims to correct what supporters call asymmetries in the current model, so that equivalent solutions receive equivalent treatment when the bill is split.
Who supports it and why
Five organizations issued a joint statement supporting the text: ABSAE (Brazilian Association of Energy Storage Solutions), ABSOLAR (Brazilian Photovoltaic Solar Energy Association), Apine (Brazilian Association of Independent Power Producers), Abeeólica (Brazilian Association of Wind Energy and New Technologies) and Abiape (Brazilian Association of Investors in Energy Self-Production).
The core argument is equal treatment. For the associations, technologies that deliver similar services to the system must follow the same legal regime, which allows costs to be compared fairly. In practice, this means that capacity reserve funding rules should apply equally to any contracted solution, whether batteries or another source. The capacity reserve is the mechanism through which the system contracts available power to meet periods of higher demand or lower supply, and the capacity reserve auction (LRCAP) is the instrument used for this procurement.
The organizations also agree on another point: keeping the current model could make energy more expensive, since these costs end up passed on to the price consumers pay. The sector further argues that current legislation creates legal uncertainty for the December auctions and increases unpredictability in power sector negotiations.
Next steps in the legislative process
Urgency is only one step. The path to eventual enactment still has significant stages:
- Chamber floor: the vote on the merits should take place only after the October 25 runoff.
- Negotiation with the federal government: the process must be agreed with the Executive for the text to actually be put to a vote.
- Federal Senate: even if approved by the deputies, the bill still requires the senators' approval to become law.
This timeline comes dangerously close to the window for the battery auctions planned for December, leaving the market without a definitive answer on the funding rule.
What this means for the Northeast
The uncertainty over funding directly affects the pricing of projects competing in the auction, and the Northeast is likely to account for a significant share of these bids. An ENLACE survey of substations in the region eligible for LRCAP 2026 shows that 27 substations in Bahia and 24 in Ceará appear in the ONS technical note with connection margin, while in Piauí all 15 eligible substations have available margin. In other words, there is physical room on the grid to connect projects; what is missing is clarity on the economic rule.
For developers in Ceará, Piauí and Bahia, connection margin solves only part of the equation. Without knowing who will bear the capacity reserve costs, it becomes harder to close financial models, negotiate with lenders and set bid levels with confidence.
Our take
In our assessment, the approval of urgency signals that Congress recognizes the issue as relevant to the design of the storage market. The joint support of associations from different segments, from solar and wind to independent producers and self-producers, indicates that the debate over equal treatment in funding goes beyond the interests of a single niche. We see this as a positive step for predictability, but still far from a solution.
What remains undefined is precisely the essential: whether the text will be voted on, in what form, and in time to influence the December auctions. Dependence on an agreement with the federal government and on Senate approval adds uncertainties that urgency does not resolve. There is also the risk that the electoral calendar compresses the legislative agenda and pushes the decision past the auction, which would force participants to price under the current rule or under alternative scenarios.
In the coming weeks, we will monitor three points: the inclusion of the bill on the floor agenda after October 25, signs of negotiation between the Chamber and the Executive, and the pace of any proceedings in the Senate. It is also worth watching whether ANEEL or the government will comment on the funding rule before the auctions take place.
What changes in practice for the BESS chain
For developers, the recommendation is to work with more than one funding scenario when pricing bids, making explicit how each rule affects expected revenue and project risk. For EPCs, the moment calls for proposals with timelines and terms that accommodate possible scope adjustments if the economic model changes close to the auction.
Manufacturers and suppliers of batteries and power conversion systems should consider that effective demand depends on the economic viability of projects, not just on the auction taking place. Maintaining close dialogue with developers and tracking the legislative process helps calibrate offers and delivery times. In all cases, the rule is the same: commercial decisions made now must take into account that the question of who pays for the capacity reserve remains open.
Original source: ABSOLAR — Câmara aprova urgência do PL que faz rateio de custos de baterias elétricas
Paulo Melo