Brazil approves regulatory framework for energy storage systems

Brazil’s Agência Nacional de Energia Elétrica (Aneel) has approved regulations governing energy storage systems (ESS), including rules for connecting storage assets to the electricity grid. The regulator said the decision opens the door to broader deployment of battery energy storage systems (BESS) beyond behind-the-meter applications, which have dominated the Brazilian market to date.

The decision comes ahead of the publication of guidelines from the Ministry of Mines and Energy for a planned capacity reserve auction for battery storage systems. During discussions on the measure, Aneel director Gentil Nogueira said Brazil’s energy minister had indicated that the battery auction is expected to take place before the end of 2026, making it necessary to establish minimum regulatory requirements in advance.

The approved framework maintains provisions allowing generators that pair energy storage systems with power plants to reduce contracted transmission and distribution network usage by up to 30%, subject to existing notification requirements.

The regulations also create incentives for standalone storage systems that are centrally dispatched by Brazil’s National System Operator (ONS). Under the rules, standalone storage assets operating under ONS control will pay network charges only as generators, avoiding the need to pay separate network charges for charging and discharging operations.

Standalone storage systems that are not centrally dispatched by ONS will be required to contract network capacity separately for charging and discharging and will pay network usage charges as both consumers and generators.

Fabio Lima, executive director of the Brazilian Energy Storage Association (ABSAE), described the completion of the regulatory process as a milestone for the sector and said the framework provides greater certainty for the planned storage auction.

ABSAE said declining lithium-ion battery costs have increased international interest in the Brazilian storage market and reiterated the role of battery systems in supporting grid stability as solar and wind generation continue to expand. The association also said battery storage can help reduce overall system costs and accelerate deployment of new grid resources.

From pv magazine Brazil