Brazil Opens Consultation for First Battery Storage Capacity Auction Set for April 2026

Overview

• The Ministry of Mines and Energy published a draft ordinance in the federal register and launched a 20‑day public consultation with materials available on the MME and Participa + Brasil portals.
• The draft schedules an April 2026 auction to contract electrochemical battery systems as a capacity reserve for the National Interconnected System to safeguard continuity of supply.
• Winning projects would sign 10‑year supply contracts beginning commercial operation in August 2028, with remuneration through a fixed revenue stream after start of service.
• ANEEL will prepare the auction notice and contract templates, and studies by EPE and ONS will determine the volume to be procured.
• Proposed rules set technical bounds on power, discharge duration, efficiency and recharge time, and lawmakers are weighing REIDI tax incentives for batteries capped at R$1 billion per year through 2030.