Brazilian capacity reserve auction suspension makes batteries even more urgent

Brazil’s MME has revoked the ordinances related to a planned thermal and hydro power grid capacity auction planned for June, effectively suspending the procurement exercise.

The move came after a court upheld a challenge by the Brazilian Consumer Defense Association, which questioned part of the price setting criteria for combined cycle natural gas plants, claiming the contentious rule’s inclusion was not transparent and would negatively affect the competitiveness of such gas plants.

Solar trade body Absolar said it will press ahead with a planned battery-dedicated capacity auction planned for the second half of this year.

The association said batteries are positioned to help the nation secure the electricity capacity it needs.

“We cannot miss this strategic opportunity, especially in the year of COP30 [the United Nations’ climate change summit] in Brazil,” said Absolar CEO Rodrigo Sauaia. “The inclusion of batteries in the Brazilian electricity system represents a significant advance for the country ’s energy security while accelerating the transition to a cleaner and more flexible energy matrix. Energy storage is an essential pillar in the decarbonization of the electricity matrix, as is already the case in countries such as China, the United States, Australia, Chile, the United Kingdom, and Germany, among others. Here in Brazil, it would bring even more systemic flexibility and significantly reduce operational restrictions, responding quickly to requests from the system operator and contributing to reducing costs associated with the operation of the SEB [Brazilian Electricity Market].”

From pv magazine Brasil.