Brazil's National Electric System Operator (ONS) published, on Wednesday, September 30, a Technical Note with the figures for remaining connection capacity for the Capacity Reserve Auction (LRCAP) dedicated to battery energy storage systems. According to the document, more than 80% of the points registered by developers have available margin to receive these projects. This is an important snapshot for anyone planning to compete in the auction, as it shows where the grid can still accommodate new installations and where strategy will need to be revised.
What ONS released
The Technical Note presents the remaining capacity at the connection points indicated by the developers themselves during registration for the auction. Put simply, the operator assessed whether the existing transmission infrastructure at these locations can absorb the entry of battery systems without compromising the security and performance of the power system.
The main finding is that the vast majority of points have headroom. According to ONS, more than four out of every five registered locations can, in principle, accommodate storage projects. On the other hand, this also means that a share of the points has no margin, and the projects associated with them need to be reassessed before the auction.
Why connection margin matters in the LRCAP
The LRCAP is a type of auction aimed at contracting available power to ensure demand is met, especially at times of greatest system need. Unlike auctions focused solely on energy, the goal here is to secure capacity that can be dispatched when needed. Battery energy storage systems, known by the acronym BESS, fit this role well, since they can store energy and return it to the grid quickly.
Connection margin, in turn, indicates how much new capacity a point on the grid can receive. Even a project that is well designed from a technical and financial standpoint can become unfeasible if the chosen site has no room to export or absorb the planned power. That is why the release of these figures is usually a decisive step in preparing any auction involving new projects connected to the system.
What the result means for the market
The fact that more than 80% of the points have available capacity signals that the grid, overall, is able to receive a significant number of storage projects in Brazil. For developers, this reduces part of the uncertainty that normally comes with choosing a project site.
Even so, the result does not eliminate the need for case-by-case analysis. The existence of margin at a point does not, in itself, guarantee that all the projects that indicated it can be accommodated, since capacity is limited and may be contested by more than one project. A careful reading of the Technical Note is therefore essential.
What changes in practice for the BESS sector
With the publication of the document, each link in the storage chain has concrete tasks ahead:
- Developers: should consult the Technical Note and check the margin at the points they registered. Projects tied to locations with no remaining capacity need to be relocated or resized to remain competitive in the LRCAP.
- EPCs: may be called on to quickly revise engineering studies, substation layouts and connection solutions for projects that change points, which requires agility in reworking proposals.
- Battery and equipment manufacturers: gain greater clarity on which projects are most likely to move forward, which helps with supply planning and negotiations with developers.
- Suppliers and service providers: consultancies and firms specializing in electrical studies and permitting are likely to be in demand to support site reassessment and the preparation of auction documentation.
At ENLACE, we follow this type of publication closely because, in practice, it defines which storage projects are truly ready to compete. Reviewing the connection point now, based on official ONS data, is the safest way to avoid surprises in the next stages of the battery LRCAP.
Original source: ONS — ONS identifica mais de 80% dos pontos cadastrados com margem de conexão para projetos do LRCAP de Armazenamento de Energia em Baterias