en.Wedoany.com Reported - Brazil's Ministry of Mines and Energy has signed the regulatory framework for battery energy storage capacity auctions, which is expected to be officially published this week, confirming that a tender will be held in 2026. The announcement was made by the ministry's Executive Secretary, Gustavo Cerqueira Ataíde, during a hearing at the Chamber of Deputies' Committee on Mines and Energy.

Cerqueira stated that the government, together with Energy Minister Alexandre Silveira, has signed the framework decree for battery storage auctions. The decree will be published in the Official Gazette of the Union the following day, clearing the way for a battery auction to be held by the end of 2026.

The auction, classified as a Capacity Reserve Auction (LRCAP), is expected to establish rules covering system size, minimum operating duration, locational signals, and potential local content incentives. Based on a public consultation launched in November 2025, the framework may require systems to have a minimum capacity of 30 MW and commit to operating at full power for four hours daily. The contract term is set at 10 years, with power supply starting on August 1, 2028.

The framework may also include a competitive advantage bonus for projects connected to specific points within Brazil's National Interconnected System. These connection points are identified by the National Electric System Operator (ONS) as locations offering the greatest operational benefits. Simulations by the Energy Research Company (EPE) indicate that such locational incentives would favor connection points in the Northeast region and the northern part of Minas Gerais state.

Cerqueira noted that battery storage is crucial for meeting capacity demands, mitigating the impact of surplus renewable energy generation, and maintaining dynamic system stability. Following the publication of the framework decree, the National Electric Energy Agency (Aneel) is expected to launch a public consultation on the auction notice.

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