Brazilian government signs storage auction framework ahead of 2026 tender

Brazil’s Ministry of Mines and Energy has signed the regulatory framework for a dedicated battery storage capacity auction, with publication expected this week and a tender confirmed for 2026.

The signing was announced by executive secretary Gustavo Cerqueira Ataíde during a hearing before the Chamber of Deputies’ Committee on Mines and Energy.

Cerqueira said the government had signed the framework ordinance for the battery storage auction with Energy Minister Alexandre Silveira and that the measure would be published in Brazil’s Official Gazette the following day, clearing the way for a battery auction before the end of 2026.

The auction, known as the Capacity Reserve Auction (LRCAP), is expected to set rules covering system sizing, minimum operating duration, locational signals, and potentially local content incentives. A public consultation opened in November 2025 indicated that the framework could require systems of at least 30 MW with a commitment to deliver maximum power for four hours per day. Contracts would run 10 years, with supply start dates from Aug. 1, 2028.

The framework may also include a competitive advantage bonus for projects connected at points in Brazil’s National Interconnected System identified by grid operator ONS as delivering the greatest operational benefits. A simulation by energy research agency EPE signaled that this locational incentive would favor connections in the Northeast and northern Minas Gerais.

Cerqueira said battery storage will be critical for meeting capacity requirements, mitigating the effects of excess renewable generation, and maintaining dynamic system stability. Following publication of the framework ordinance, grid regulator Aneel is expected to open a public consultation on the auction notice.

From pv magazine Brazil