The Brazilian Photovoltaic Solar Energy Association (ABSOLAR) released on October 19, 2026 a short video from its Storage Leaders series in which Bárbara Rubim, chair of the association's Board of Directors, states that the Capacity Reserve Auctions for Storage Systems, known as LRCAP 2026 and scheduled for December, are already stirring Brazil's power sector. The association uses the message to stress that consolidating this still-emerging market is a prerequisite for batteries to gain scale in the country and contribute to the energy transition.
ABSOLAR's message on the storage auction
The core point is simple: even before it takes place, the auction is already having an effect. As presented by the board chair, batteries open new fronts for solar energy in Brazil, and the prospect of procurement dedicated to storage is prompting companies to start organizing in advance.
In the video, the association does not detail the rules, volumes or commercial terms of the auction. What is clear is its institutional stance: for ABSOLAR, strengthening the storage market is essential to expanding the use of batteries and advancing the decarbonization of the energy mix. The piece also serves as an invitation for companies across the value chain to join the association and take part in the discussions it leads.
What LRCAP is and why it matters for BESS
Capacity reserve auctions are mechanisms through which the power sector procures available capacity to ensure demand is met at times of greatest need, rather than just energy over time. In an edition focused on storage systems, the goal is to remunerate assets capable of storing energy and returning it to the grid when the system needs it.
This is where BESS (battery energy storage systems) come in. This equipment can charge during periods of surplus generation, such as hours of strong sunshine, and discharge when renewable output falls while consumption remains high. For an energy mix increasingly reliant on variable sources, this flexibility is growing in value.
Another relevant concept for those planning to compete is connection margin, which indicates how much additional capacity a grid point can receive without requiring reinforcements. In auctions of this kind, the choice of connection point often weighs as much as the price offered.
A debate that goes beyond the auction
The LRCAP video was published on the same day as other ABSOLAR content, including a Storage Leaders roundtable and a talk by Bárbara Rubim on Public Consultation 33/2026, which discusses who should decide on curtailing energy injected into the grid. The overlapping agenda shows that storage and generation curtailment go hand in hand on the association's agenda: the more renewable energy goes unused, the clearer the role of batteries becomes as a way to shift that output over time.
What this means for Brazil's Northeast
The news concerns a national auction, but grid availability determines where projects can be made viable. According to an ENLACE survey of Northeastern substations eligible for LRCAP 2026, cross-referencing the ONS technical note on connection margin with other public databases, 27 substations in Bahia, 24 in Ceará and 15 in Piauí appear in that document with a stated connection margin.
For project developers in the region, this means there are concrete starting points, but also that competition for these access points is likely to be intense. Studying the local grid early, comparing connection alternatives and avoiding reliance on a single option are precautions that become more important as December approaches.
Our take
In our assessment, the video's main message is one of signaling: a leading solar industry association is treating the storage auction as a milestone for the battery market in Brazil. We see this as an indication that manufacturers, developers and investors are already placing the auction at the center of their planning, which is likely to accelerate partnership formation and bid structuring.
At the same time, the source provides no details on rules, quantities to be procured or qualification criteria, and this should be read with caution. Until these points are fully clear to each participant, there is a risk that projects will be designed on assumptions that later need to be revised. The link to the debate on generation curtailment, the subject of Public Consultation 33/2026, also deserves attention, as decisions there may influence how the value of storage is perceived.
In the coming weeks, we recommend following the confirmation of the auction schedule planned for December, the progress of Public Consultation 33/2026 and the positions that ABSOLAR and other associations may present on the design of the storage market.
What changes in practice for the BESS value chain
With the auction on the December horizon, preparation time is short. Each link in the chain has its own tasks:
- Developers: prioritize areas with viable grid access, organize land and environmental documentation and define the connection strategy in advance.
- EPCs: build realistic budgets and schedules, considering equipment logistics, civil works and integration with the substation.
- Manufacturers: prepare technical and commercial proposals compatible with the operating profile of a capacity contract, including performance guarantees.
- Suppliers and integrators: align the availability of batteries, power conversion and control systems with the deadlines winning projects will need to meet.
In all cases, the recommendation is the same: treat LRCAP 2026 as an ongoing project rather than a future event, revising assumptions as new official information is published.
Original source: ABSOLAR — ABSOLAR Storage Leaders | Bárbara Rubim | LRCAP 2026 já movimenta o setor elétrico brasileiro
Paulo Melo