Brazil eyes April 2026 for first battery storage auction

Source:pv magazine

The auction for reserve capacity, which will include the contracting of battery storage systems (BESS), is expected to take place in April 2026, according to a source who attended bilateral meetings with Minister of Mines and Energy Alexandre Silveira in Jakarta, Indonesia, and spoke to pv magazine Brasil. A new 20-day public consultation is scheduled for next month to define the bidding rules and unlock the potential of BESS in Brazil.

Earlier this month, Silveira had indicated during an event in Belém, Pará, that the first battery storage auction is expected to have a demand of around 2 GW, which could translate to 8 GWh if contracted with a 4-hour use scenario.

According to the Brazilian Association of Energy Storage Solutions (ABSAE), there are already roughly 18 GW of battery energy storage projects ready for registration in the upcoming auction. The association estimates that contracting 2 GW could mobilize R$10 billion ($1.85 billion) in investments.

The official Federal Government mission to Asia aimed to attract international investors for the first battery auction, which the Ministry of Mines and Energy originally planned to hold later this year, marking a new cycle of modernization and innovation in Brazil’s electricity sector.

During the meetings, companies including Huawei Digital Power, BYD, CATL, Envision, Sungrow, and HyperStrong presented technological solutions and cooperation models focused on large-scale batteries and smart grid applications.

Minister Silveira emphasized that the battery auction will be conducted within the Reserve Capacity Auction (LRCAP) framework – a regulatory mechanism designed to ensure adequate electricity supply for the national system. This edition will incorporate a specific product targeting energy storage systems.