The energy storage regulation approved by ANEEL The announcement by the National Electric Energy Agency (Agência Nacional de Energia Elétrica) and the publication of the guidelines for the first Brazilian battery auction were received positively by ABSAE (Brazilian Association of Energy Storage Solutions).
Although the organization is still awaiting the release of the final text of the resolution for a detailed analysis, the initial assessment is that the two moves represent an important milestone for the consolidation of the Brazilian storage systems market.
The simple fact that ANEEL "Having made a decision is positive," summarizes the organization's president, Markus Vlasits.
According to the executive, after much regulatory discussion, the agency's decision brings significant relief to the market and signals the beginning of a new phase for investments in storage.
The association's assessment, however, is still preliminary. As the dissenting opinion of director Willamy Frota and the final text of the resolution had not yet been made available at the time of the interview, Vlasits prefers to exercise caution before making an in-depth analysis of the new rules.
He explains that ABSAE is still awaiting access to the official text to understand how some concepts were effectively translated into the regulation.
"We basically have the statements from yesterday's (Tuesday's) meeting. We need to receive the text of the resolution to do a detailed reading," he emphasized.
Even so, the initial perception is positive, he notes, especially given indications that the so-called double pricing should be partially eliminated for certain operating models.
“We need to see the paperwork, but yesterday’s rhetoric was positive and we remain hopeful that good things are to come,” the executive said.
Another promising aspect is the differentiation between storage systems operated under the dispatch of the ONS (National Electric System Operator) and those that will operate independently.
According to Vlasits, the idea arose during technical discussions with the ANEEL to prevent certain projects from potentially exacerbating network stress situations.
According to the association, establishing specific rules for systems contracted through auction, which will act as a service provider to the electrical system, "makes perfect sense" and represents an important conceptual advancement.
Auction confirms expectations.
While the regulations still require detailed review, the publication of the decree for the first battery auction was received with great optimism by ABSAE.
“I can say that our initial impressions are quite positive,” stated Markus Vlasits. “Much of what was presented follows the lines that we had already been discussing with the Ministry of Mines and Energy during the public consultation.”
Among the points highlighted by ABSAE are the possibility of participation in fully autonomous systems or systems shared with other agents, the definition of minimum projects of 30 MW with four hours of autonomy, the requirement for grid-forming functionality, and the adoption of contracts with a term of 15 years.
According to the executive, the contract length was one of the most successful decisions. "We are very pleased with the decision to establish a 15-year contract, because this simply allows for the best possible return on the investments that will be made," he stated.
The definition of up to two complete daily cycles, respecting the annual limit of 366 cycles, also received a positive evaluation, as did the confirmation that the systems will be operated in real time or according to the daily schedule of the ONS (National System Operator).
Balanced solution
Another point highlighted by Vlasits was the strategy adopted by the government to stimulate the national production chain without restricting the competitiveness of the bidding process.
The ordinance established two distinct products, namely, one reserved for systems with local content and another open to both national and imported equipment.
According to ABSAE, the solution balances incentives for Brazilian industry with the need to guarantee broad competition.
“This configuration offers the possibility of stimulating the local supply chain, but at the same time it does not limit the volume that can be contracted by the existing installed capacity. It was a very intelligent calibration,” points out the president of ABSAE.
According to him, the publication of the ordinance provides precisely the predictability that several manufacturers were waiting for to accelerate their investment plans. "Several of our associates are preparing for this auction and needed exactly this clarity that the ordinance brought," he said.
Strong competition
Although the exact volume to be contracted remains open, the association expects the bidding process to attract a large number of projects.
Minister Alexandre Silveira has already indicated the possibility of contracting around 2 GW, but Markus Vlasits believes that the volume could be significantly higher, especially given the needs pointed out by the ONS itself.
"We expect an offer well above 20 GW of battery projects," he stated. "It's reasonable to assume that the contracted amount will be greater than the 2 GW initially mentioned."
According to their estimates, if the auction reaches approximately 5 GW of contracted power — equivalent to 20 GWh, considering four hours of autonomy — investments could range between R$ 25 billion and R$ 30 billion.
More important than the final amount, however, will be the structuring effect of the auction on the entire production chain.
“This auction will undoubtedly accelerate the supply chain and the development of energy storage in Brazil. Regardless of whether it's R$10 billion, R$20 billion, or R$30 billion, it will be the great accelerator of energy storage and will definitively put this technology on the map of the Brazilian electrical system,” concluded Vlasits.
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