The call for bids outlining the rules for the first battery auction is expected to be published in April, with the auction taking place sometime in 2026, as part of a Federal Government strategy to increase the flexibility of the electrical system in light of the rapid advancement of renewable energy sources.
The proposal includes the possibility of requiring minimum storage percentages in new generation projects that will be connected to the SIN (National Interconnected System), as a way to reduce operational risks and curtailment events (generation cuts).
Ongoing technical studies indicate that the necessary storage level may vary between approximately 10% and 30% of the capacity associated with the power plants, including in distributed generation (micro and mini-generation).
The measure aims to prevent the expansion of solar and wind power generation from occurring without instruments capable of absorbing the variability in production and without compromising the stability of the grid.
The statements were made this Wednesday (11) by the Minister of Mines and Energy, Alexandre Silveira, during a session of the Mines and Energy Committee of the Chamber of Deputies.
At the time, he stated that energy storage would be a central component of energy policy. Silveira used strong terms to describe the need for this measure, stating that it is necessary to "curb" the uncoordinated advance of renewables, which would be done through batteries.
"If we don't solve the storage problem, both with larger-scale systems and with batteries in distributed generation, we will collapse the system," he warned.
According to the government, the growth in solar power generation has occurred at a faster pace than the adaptation of transmission infrastructure, which has led to frequent curtailment episodes and operational instabilities that the ONS (National System Operator) has difficulty managing.
In addition to the operational rules, the April tender should include guidelines on local content. Silveira advocated for the creation of a "market reserve," even a small one, for national companies in the battery auction.
The goal is to boost the development of science and technology in Brazil, leveraging constant dialogue with major global players, especially China, which currently dominates energy storage technology. The minister emphasized that, while Brazil wants to attract foreign investment, it cannot neglect fostering its own battery component industry.
Auction and TCU
Another central theme of the hearing was the LRCAP (Capacity Reserve Auction), scheduled to take place in the coming days. Silveira informed that he would meet later that Wednesday with Minister Jorge Oliveira, of the TCU (Federal Court of Accounts), to clarify the increase in the ceiling prices of the auction.
The TCU (Brazilian Federal Court of Accounts) opened an investigation to analyze evidence of irregularities and the lack of technical justification for this increase, issues that could affect tariff moderation.
The minister justified the price change as a necessary response to the market reaction. He cited that... PetroBras, the company most interested in the auction, indicated that it might not submit bids if the original prices were maintained.
Silveira argued that the risk of not contracting reserve capacity is very high, potentially leading to the need for emergency contracts or merchant thermal power plants in the future, which could cost consumers up to three times as much, as happened during the 2021 water crisis.
Nuclear program
When dealing with nuclear energyAlexandre Silveira emphatically defended national sovereignty and the continuation of Angra 3. The minister described the work stoppage as a "testament to national incompetence" and criticized the previous government's management for acquiring billions of dollars worth of equipment without a final decision from the CNPE (National Energy Policy Council).
Currently, Brazil spends over R$ 200 million per year just to store and maintain this idle equipment in Angra. Silveira presented his vote in favor of the plant's continued operation, but on the condition that there is a profound modernization of Eletronuclear, INB, and Nuclep.
He highlighted that Brazil possesses the seventh largest uranium reserves on the planet and that the country needs to reconsider the role of the nuclear industry in the areas of defense and medicine.
The minister also envisions a promising future for small nuclear reactors (SMRs), which could replace diesel-fired power plants in the Amazon and supply large steel industries with clean and safe energy.
Uncertainty
When questioned about his continued tenure in office, the minister stated that no final decision has yet been made. The legal deadline for resigning from his post is April 3rd, and he said he will remain dedicated to the government and the political project of President Lula (PT), highlighting the importance of Minas Gerais in the electoral landscape.
all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.
