Brazil is preparing to hold its first specific storage auctions in December, but the private sector is already focusing on the continuity of the scheme .
During the opening of The smarter E South America , the Brazilian Association of Photovoltaic Solar Energy (ABSOLAR) raised the importance of having annual capacity processes, with quantitative goals and continuity of a policy focused on storage.
“The call for bids (LRCAP Storage) is an extremely important decision. The problem is that an auction is not a public policy; an auction is an event. The electrical system needs a public policy on batteries, with annual auctions, technological neutrality, and a scale compatible with the energy spillover problem that Brazil currently faces,” stated Bárbara Rubim , president of ABSOLAR .
“That’s why we presented commitments to all presidential candidates. The first is to conserve energy instead of wasting it. We will hold annual auctions for technologically neutral capacity, aiming for 8 GW of large-scale storage capacity by 2030,” he added.
The order comes at a time when the country has 74.3 GW of photovoltaic capacity in operation , equivalent to 27.4% of an electricity matrix (270.81 GW) , according to the latest ABSOLAR report updated to July 20, 2026.
Of the total photovoltaic capacity, 51.69 GW correspond to distributed micro and mini generation and 22.62 GW to centralized generation, making it the second largest source of installed capacity in the country, behind hydroelectric power.
Added to this scale of penetration is a growing operational problem: renewable generation outflows have already reached 17.2% of all solar and wind energy produced during the first three months of the year, compared to 15.3% in the same period of the previous year.
“ This shows that in the last 12 months energy waste has not decreased; on the contrary, it has increased . This phenomenon we are experiencing, which many articles call excess sunlight, is not excess sunlight. It is a lack of batteries and insufficient charging ,” Rubim stated.
“Brazil has developed renewable energy generation at a record pace in the last 15 years. Now we need to build the necessary flexibility to sustain this generation ,” he added.
Meanwhile, market interest in energy storage is already massive. The Energy Research Company (EPE) registered 6,091 BESS projects totaling 296,807 MW interested in participating in the capacity reservation auctions, to be held in December of this year and divided into two days.
The first ( LRCAP 2026 – National Stockpile) is scheduled for December 2nd and will include minimum national content requirements; while the second ( LRCAP 2026 – National Stockpile) will be held on December 4th without that requirement.
The projects must exceed 30 MW of power and have four hours of storage capacity . Supply will begin on August 1, 2028, with 15-year contracts and remuneration through an annual fixed payment (Receita Fixa), paid in 12 monthly installments and adjusted according to the IPCA index.
There is still no official definition regarding the contracted volume. However, market perception points to between 2 and 5 GW of power , equivalent to between 8 and 20 GWh considering a four-hour duration.
ABSOLAR believes that this initial contract should be the starting point, not the ceiling, for future development. This argument is also supported by the economic impact that the cuts are already having on renewable energy projects .
“The generator wants to reduce the selling price. But in recent years, generators have suffered losses of more than 7 billion reais . Those who provide financing perceive this risk and charge accordingly,” explained the president of the association, directly linking this risk to the financial cost and the future value of electricity.
“Those who invest take this into account when calculating the contract price. And today’s contract price will become tomorrow’s energy price,” he pointed out.
The tax burden on batteries, another barrier to deployment
In addition to the continuity of tenders, ABSOLAR identifies the tax burden as one of the main obstacles to accelerating storage in Brazil.
According to Rubim, batteries currently face a tax burden of 84.8% , while other technologies such as natural gas pay 44.3% .
“The most modern asset in the electricity sector is, in turn, the most penalized due to a tax decision ,” he noted during the opening of The Smarter E South America.
Therefore, the organization proposes equal tax treatment for batteries alongside solar panels and also puts forward the development of distributed storage as a complementary tool.
“Australia has shown us that the distributed battery revolution is extremely effective in curbing the generation outages that harm centralized generation,” Rubim said.
The association links this agenda to a second focus it presented to the presidential candidates: creating new demand to allow Brazil to consume the energy that is currently wasted . Among the alternatives it mentions are low-emission, high-energy-consumption industries, data centers, green hydrogen, electrification, and exports.
In addition, they also proposed the incorporation of a third axis called "Sun for all" , aimed at combining photovoltaics and batteries to expand electricity access in isolated regions, including 500,000 communities in the Amazon .
The entity assures that its three proposals —large-scale storage, new electricity demand and solar with batteries for isolated areas— should not imply an additional cost for the consumer's tariff .
“None of these three proposals will increase consumer tariffs. None will generate additional costs for consumers; on the contrary, all three will reduce energy prices in the medium term. The sector is not asking for subsidies. We are asking that the money consumers have already paid for no longer be wasted,” concluded the president of ABSOLAR.