Inclusion of batteries in the capacity auction would minimize tragedies like those in Rio Grande do Sul, says CEO of ABSOLAR

Rodrigo Sauaia's speech took place during a hearing held this week at the Mines and Energy Committee of the Chamber of Deputies
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Baterias no leilão de capacidade minimizaria tragédias como no Rio Grande do Sul, diz CEO da ABSOLAR
Rodrigo Sauaia, CEO of ABSOLAR. Photo: Billy Boss/Chamber of Deputies

A inclusion of batteries and other energy storage systems in the next capacity reserve auctions would help Brazil to minimize you impacts caused by natural tragedies, like what happened in Rio Grande do Sul. 

The statement was made by Rodrigo Sauaia, CEO of ABSOLATE (Brazilian Photovoltaic Solar Energy Association), during court hearing held this week, at CME (Mines and Energy Commission) of the Chamber of Deputies. 

“If we had batteries available, easily accessible and with a low tax burden, we could use them with solar energy to quickly restablish telecommunications and access to electricity for critical points in Rio Grande do Sul, helping to accelerate the recovery of these communities and the local economy,” he said.

According to the executive, among the facilities that could benefit in the State because of the storage systems would be hospitals and other entities that need energy to offer emergency services the population. 

"Furthermore, we could support more agile reconstruction processes with the use of this electrical energy, in addition to replacing thermoelectric generation – which is more expensive, polluting and which, unfortunately, emits greenhouse gases which further aggravate the risk of this type of situation (natural disasters) happening in the future”, highlighted Sauaia.  

Batteries in the capacity auction

A battery integration and other energy storage systems to the electrical system national has been one of the main debates at the moment of the energy sector.

After receiving suggestions from the private sector, the Federal Government has considered including such systems in the capacity reserve auction which is scheduled to take place at the end of August. 

If confirmed, will be the first time that equipment of this type will participate in an event promoted by the Executive for contracting electricity. 

At the end of March, the MME minister (Ministry of Mines and Energy), Alexandre Silveira, he said that the Brazil intends to include batteries in the next capacity reserve auction

The announcement came amid strong pressure from the renewables sector for the inclusion of batteries in the competition. According to Silveira, the measure is already being studied by MME technicians. 

What is a capacity reservation auction?

The capacity reserve auction is a bidding process carried out by ANEEL (National Electric Energy Agency), in which energy generating plants are contracted to make a specific amount of generation capacity available in a given period.

The objective is to guarantee energy reserves to meet the country's future demand, considering aspects such as consumption growth, seasonality and contingencies. Capacity reservation auctions are divided into two types: by availability and by quantity. 

In the availability auction, projects are contracted that guarantee the availability of a certain amount of energy in a certain period. In the auction by quantity, plants are contracted and commit to generating a fixed amount of electricity in a given period.

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Picture of Henrique Hein
Henry 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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