Brazil's National Electric System Operator (ONS) argued that battery storage systems should have a place across several fronts of the Brazilian power sector, not just in auctions. The position was presented by Sumara Ticom, an ONS representative, during the ABSAE 2025 Members' Meeting, held by the storage industry association. The event was announced by the association on December 5, 2025. The agenda featured two panels: one on the new law that changed the sector's framework and another on the Capacity Reserve Auction scheduled for 2026.
Law 15.269/2025 and battery business models
The first debate addressed the effects of Law 15.269/2025, which resulted from the conversion of the former MP 1304 (provisional measure), on how storage projects can be remunerated and structured. Fábio Lima and Raphael Gomes took part in the discussion.
The topic is central for BESS (Battery Energy Storage Systems) project developers. This equipment can generate revenue in different ways: selling available capacity to the system, shifting energy from surplus hours to peak-demand hours, providing grid support services, or cutting costs for large consumers. Regulatory clarity determines which of these paths are viable and how contracts can be structured, which directly affects investment decisions and access to financing.
The 2026 capacity auction and the ONS view
The second panel was dedicated to the 2026 Capacity Reserve Auction. This type of auction, known by the acronym LRCAP, procures power that remains available to be dispatched when the system needs it, unlike traditional auctions focused on selling energy. Batteries are natural candidates for this role because they respond quickly to the operator's commands.
Alongside Markus Vlasits, chairman of the ABSAE Board, Sumara Ticom went beyond the auction. The operator's message is that batteries should enter the system through every available path. She cited three specific fronts:
- Distributed generation, with storage paired with smaller systems connected to distribution grids;
- Industry, with batteries installed at large consumers;
- Transmission, with storage treated as a grid asset, able to perform functions that today rely on conventional works, such as capacity reinforcement and stability support.
The fact that this advocacy comes from ONS, which coordinates the operation of the interconnected system, lends technical weight to the argument that storage is an operational tool, not just an auction product.
What changes in practice for the BESS sector
The operator's message broadens the commercial horizon beyond a single auction. Each link in the chain can read it differently:
- Developers: it makes sense to build portfolios that do not depend solely on the 2026 LRCAP. Projects targeting industry, distributed generation and transmission solutions can diversify revenue and reduce the risk of betting everything on a single auction outcome.
- EPCs: the different applications require distinct skills, from installations at industrial plants to integration with substations and stricter operating requirements when the asset serves the grid.
- Manufacturers and suppliers: demand is likely to spread across projects of varying sizes, calling for a flexible offering of equipment, control systems and operation and maintenance services.
At the same time, the regulation of Law 15.269/2025 remains a point of attention. Tracking how the new rules will be applied, and how the capacity auction design will be defined, is an essential step for anyone looking to turn the ONS signal into concrete projects in Brazil.
Original source: ABSAE — “Baterias devem entrar por todas as portas possíveis”, afirma ONS no encontro de associados da ABSAE