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Politics & Regulation

Associations advocate for a change in the law to avoid extra costs for solar and wind power generation in battery auctions.

ABSOLARABEEólica, ABSAE, ABIAPE, and APINE state that the current rule could increase project costs and harm the bidding process.

Overview of the Arinos Solar Complex in Minas Gerais. Photo: Gerdau Press Release

Five of the industry's leading associations released a joint statement this week advocating for the approval of... 3.716 / 2026 Bill, which changes a rule considered detrimental to centralized generation projects that will participate in the energy storage market.

The joint statement was signed by ABSOLAR (Brazilian Photovoltaic Solar Energy Association), ABEEolic (Brazilian Association of Wind Energy and New Technologies) ABSAE (Brazilian Association of Energy Storage Solutions), ABIAPE (Brazilian Association of Investors in Self-Production of Energy) and APINE (Brazilian Association of Independent Electricity Producers).

According to the entities, current legislation stipulates that only generators bear the costs of contracting battery storage system (BESS) capacity, even though the benefits of this technology are shared by the entire SIN (National Interconnected System).

In practice, the associations argue that the rule causes solar and wind power plants to bear alone a cost that could benefit the entire electricity sector. For them, this violates the principle of technological neutrality, creates a competitive distortion, and increases legal uncertainty for the sector. first LRCAP (Capacity Reserve Auction) focused on storage.

Associations see risk to investments.

According to the associations, the uncertainty about who will have to pay this charge reduces predictability for investors, precisely at a time when Brazil is preparing its first auction exclusively for battery storage systems.

According to the statement, this scenario could increase the risk of projects, reduce the competitiveness of the bidding process, and even raise the cost of energy for consumers, since these charges end up being incorporated into energy sales contracts.

Check out full note from the associations, clicking here

What changes with the bill?

Bill 3.716/2026, authored by Representative Arnaldo Jardim (Cidadania-SP), proposes to repeal the section of Law No. 10.848 / 2004 which assigns this payment exclusively to the generators.

In the view of the entities, the change does not eliminate remuneration for the reserve capacity. The objective is to allow the issue to be regulated in a more balanced way by the Executive Branch, distributing costs according to the benefits that storage delivers to the electrical system.

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Henrique Hein
About the Author
Henrique Hein

He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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