Brazil will finally move forward with its first battery energy storage auction. After more than a year of delays, the Minister of Mines and Energy, Alexandre Silveira , confirmed that the government will publish “in the coming days” the decree that will formally authorize the call for bids, a move long demanded by the electricity sector.
The decision comes amid growing pressure on the system. In 2025 alone, Brazil failed to utilize nearly 20% of its solar and wind power generation , with estimated losses of 6.5 billion Brazilian reais , while average cuts reached 4,021 MW , equivalent to the capacity of a large hydroelectric plant. On at least 16 days during the year , the system operated near its minimum safe operating limit.
The announcement also unlocks a key discussion for the regional energy market, considering that Brazil will need approximately 38 GW of new power by 2034 , and the private sector expects that this first tender will contract between 1 and 2 GW of storage , a volume considered sufficient to begin incorporating flexibility into the system.
According to the expected auction model, only projects with a minimum capacity of 30 MW , capable of delivering their maximum capacity for up to four hours per day , will be eligible to participate. Furthermore, the systems must complete their recharge within a maximum of six hours and demonstrate a round-trip efficiency of at least 85% .
The awarded projects would sign capacity reservation contracts ( CRCAP ) for 10 years , with remuneration structured through a Fixed Annual Prescription, paid in 12 monthly installments and adjusted for inflation.
In turn, the energy used to charge the batteries and that subsequently injected into the system would be settled in the Short Term Market at the Settlement Price of Differences ( PLD ), while the economic difference would be covered by the Energy Account for Reserve Capacity (CONCAP) .
Although the supply was initially projected to begin in August 2028, the timeline could be modified following successive delays accumulated since the auction began to be formally discussed early last year.
Silveira also defended the time it took to define the mechanism. “An exhaustive debate was necessary so that we can now launch the auction with confidence,” the minister stated, emphasizing that Brazil evaluated international experiences before moving forward with its own design.
Storage is gaining ground in system modernization
Beyond this initial contract, energy storage is beginning to solidify as a central element in the redesign of the Brazilian electricity system.
The National Electric Energy Agency ( ANEEL ) is already working on the regulatory adjustments necessary to formally integrate these technologies. Earlier this year, it published Technical Note No. 03/2026 , in accordance with Law No. 15,269 , which recognizes energy storage as an independent activity within the electricity sector.
This regulatory process complements the second phase of Public Consultation No. 39/2023, which defines operational and economic rules for batteries within the National Interconnected System ( SIN ).
The urgency is technical, but also economic. According to Aurora Research, battery storage systems are 46% cheaper than new gas-fired power plants and could generate savings of R$3 billion annually for every 2 GW added .
The same study projects that this market could attract up to R$ 45 billion in investments by 2030 .
With the publication of the decree now confirmed, Brazil is finally moving from expectation to execution in one of the most strategic segments to sustain renewable expansion.