Brazil's Chamber of Deputies approved the emergency procedure for Bill 3.716/2026 , an initiative that seeks to eliminate the obligation for electricity generators to exclusively bear the costs of contracting energy storage systems.
The initiative takes on special relevance in a market that has accumulated 296.8 GW of registered power for the upcoming storage auctions , scheduled for December 2 and 4 of this year, while the Energy Research Company (EPE) projects the incorporation of 7.2 GW of batteries by 2036 .
It was approved on October 13, 2026 , allowing the proposal to proceed directly to the plenary session without going through the relevant committees. However, the regulatory change still requires the corresponding legislative approval.
The project, presented by deputy Arnaldo Jardim , seeks to repeal section 6 of article 3-A of Law 10.848/2004, incorporated by Law 15.269/2025, which establishes that the costs of contracting storage systems as capacity reserves are distributed exclusively among the generation agents.
The legislative document argues that the current regulations establish unequal economic treatment for an infrastructure that benefits the entire National Interconnected System (SIN) , and not exclusively the generation companies.
In that sense, the project's rationale argues that the benefits of storage, linked to the security, flexibility and reliability of the system, "go beyond individual interests and reach all agents of the SIN" .
The discussion has direct implications for the economic structuring of projects, since a modification of the charge scheme could alter the distribution of financial obligations between generators and consumers.
Furthermore, the legislative document states that the contracting of capacity and flexibility services should be governed by criteria of technological neutrality, without establishing differentiated treatment for solutions that offer equivalent performance.
In particular, it warns that the application of different financing mechanisms "introduces unjustified regulatory asymmetries, distorts economic signals and compromises comparability between technological alternatives" .
According to the initiative, these regulatory differences make it difficult to evaluate the economics of different technologies and can lead to investment decisions that do not reflect the lowest costs for the electricity system as a whole.
The rationale summarizes its position with the statement: "Systemic charges require systemic distribution," referring to the need to distribute the economic burdens of an infrastructure whose benefits reach multiple participants.
The impact on tariffs and a market projected at 77.2 billion reais
One of the most relevant aspects of the project is its questioning of the tariff impact of the current system. Although the costs of contracting storage are formally charged to the generators, the text argues that these costs can be passed on to the prices of the energy sold, with consequences for end consumers.
The legislative justification warns that this transfer could lead to "higher rates, less transparency and no guarantee of systemic efficiency" , especially due to the impact of taxes along the electricity chain.
In turn, the document points out that imposing exclusively on generators the financing of infrastructure intended to guarantee the reliability of supply creates a problem of proportionality in the allocation of obligations.
He even considers the current system to represent an "act of regulatory expropriation" and questions its compatibility with the constitutional principles of equality, legal certainty, and free enterprise.
These observations correspond to the legal grounds of the authors of the project and form part of the parliamentary discussion, without constituting a judicial ruling on the validity of the current legislation.
The economic magnitude of the debate is also reflected in the projections for the expansion of Brazilian energy storage. According to a sector study cited in the legislative justification, Brazil could reach approximately 71.8 GWh of installed storage capacity between 2025 and 2034 , with cumulative investments of around 77.2 billion reais .
Of the total projected, around 42%, equivalent to approximately 36 billion reais , would correspond to the capacity reserve segment integrated into the National Interconnected System.
That market is precisely one of the most exposed to the modification of the cost distribution mechanism promoted by Bill 3.716/2026.
The same analysis estimates that storage systems could account for 25% of the growth in installed power capacity of the Brazilian electricity matrix during the period.
It is important to differentiate these estimates, partially expressed in GWh of accumulated energy capacity, from the power projections in GW presented by the EPE for 2036.
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The legislative proposal argues that repealing the section in question would not create a regulatory vacuum, since Article 3-A already includes a cost distribution mechanism between end users and generation agents.
In fact, the document states that "the deletion of section 6 does not create a legislative gap," considering that the general regulations maintain the legal basis for financing capacity reservation services.
If approved, the reform would not eliminate the charges associated with battery procurement, but would modify who should assume them, a fundamental distinction to assess its effects on the various participants in the sector.
BESS auctions: 296.8 GW of interest, national content and 7.2 GW towards 2036
The acceleration of the legislative debate coincides with preparations for Brazil's first capacity reservation auctions specifically for storage systems.
According to records from the Energy Research Company (EPE) , the country received 6091 projects totaling 296,807 MW , a record number of entries for federal electricity sector tenders.
However, this volume corresponds to the power presented by the developers and does not represent the capacity that will ultimately be enabled or allocated.
“We have 6,000 projects under analysis at NPE and we have a good outlook for competition and lower prices,” said Thiago Prado, president of EPE, in an exclusive interview with Energía Estratégica.
In parallel, the Ten-Year Energy Expansion Plan 2036 (PDE 2036) , prepared by the Ministry of Mines and Energy and the EPE, contemplates 7.2 GW of BESS systems and 4 GW of demand response towards the end of the planning horizon.
The schedule anticipates two separate auctions: the National Storage auction will take place on December 2, 2026 , while the General Storage auction will take place on December 4 .
The first mechanism is aimed at projects that meet national content requirements, with the participation of the National Bank for Economic and Social Development (BNDES) in the equipment accreditation procedures.
The second tender contemplates a general storage contracting modality, without requiring the same domestically manufactured component.
Both tenders are part of the guidelines established by the Regulatory Ordinance 136/2026 of the Ministry of Mines and Energy, aimed at expanding the response capacity and reliability of the electrical grid.
The planned conditions include 15-year contracts , projects with a minimum power of 30 MW , a four-hour discharge capacity, and the start of supply in August 2028.
In addition to incorporating new electrical assets, the auctions seek to generate conditions for the development of an industrial chain linked to batteries, components, engineering and technological integration.
As previously reported by Energía Estratégica , more than 20 manufacturers are evaluating producing storage systems in Brazil , in a context where the predictability of demand is considered crucial for realizing industrial investments.
For his part, Prado highlights the work with the development bank to enable equipment and establish conditions associated with local production incentives.
"They are working with our Brazilian development bank to enable the equipment and obtain discounts in the auction," explains the president of EPE.
With the first tenders scheduled for December, the resolution of the debate on the financing of BESS appears as a relevant regulatory variable for developers and other agents in the electricity market.
The approval of the urgent treatment does not guarantee that the reform will come into force before the competitions, but it allows its discussion in Congress to be accelerated.
Thus, while Brazil gathers almost 297 GW of business interest and projects multimillion-dollar investments in storage, the sector faces a central definition: establishing how the costs of the services that the batteries will provide to the entire national electricity system will be distributed.
In this context, on November 5, Future Energy Summit (FES) will land in Brazil , bringing together leaders from the energy sector, authorities, investors and developers to discuss investment opportunities, the progress of renewable energies and the challenges of storage, in a market that is preparing for a new stage of expansion.