The cancellation of the LRCAP (Capacity Reserve Auction) could jeopardize the holding of the energy storage auction scheduled for 2025. The market already expressed doubts about the viability of this event in June, and now the scenario becomes even more uncertain, with the government concentrating efforts on restructuring and holding the LRCAP for thermoelectric and hydroelectric plants this year.
The average time to complete all stages of a auction in the electricity sector is at least six months. However, in the case of the energy storage auction, the scenario is even more uncertain, since the technology — which includes batteries and reversible hydroelectric plants — has not yet been regulated by ANEEL (National Electric Energy Agency).
According to the director of the regulatory agency, Ricardo Tili, the regulation of storage systems should be published later this month. The statement was made in February, during the Energyear event, in São Paulo.
In 2024, the MME (Ministry of Mines and Energy) published Ordinance No. 812/2024 and launched Public Consultation No. 176/2024, which proposed holding the first capacity auction exclusively for storage. The proposal called for a bid to be held in June 2025, with 10-year supply contracts starting in 2029. The contribution period was open between September 27 and October 28 of last year.
However, this expectation was frustrated with the scheduling of the Capacity Reserve Auction, aimed at thermoelectric and hydroelectric plants, for the same month — June 27. In March of this year, the Secretary of Energy Transition and Planning of the MME, Thiago Barral, had already signaled the postponement of the battery auction to the second half of the year, justifying the change due to the need to align with other planned events.
Now, the main challenge will be to find a new window in the calendar. Auctions are already scheduled for August (A-5), September (isolated systems), October (transmission) and December (A-1 and A-2). In addition, the government still needs to reorganize the schedule to hold the auction of thermoelectric and hydroelectric plants itself, which was suspended last week.
According to the CEO of ABSOLAR, Rodrigo Sauaia, electrical energy storage technology is mature and the electrical sector is ready to hold the storage auction in 2025.
“We cannot miss this strategic opportunity, especially in the year of COP30 in Brazil. The inclusion of batteries in the Brazilian electricity system represents a significant advance for the country’s energy security, while accelerating the transition to a cleaner and more flexible energy matrix,” he said.
Markus Vlasits, president of ABSAE (Brazilian Association of Energy Storage Solutions), believes there is still time to hold the battery auction in November. The organization expects the ordinance with the guidelines for the auction to be published in the coming weeks.
According to the executive, the decision to cancel the thermoelectric auction was difficult, but correct, as this process would be costly for the electrical system and for consumers due to the changes caused by court decisions.
However, Vlasits warns that the problem of the power deficit persists and tends to worsen from 2027 onwards. “In this context, the auction of capacity reserve for batteries becomes even more relevant”.
“It is essential that the MME (Ministry of Mines and Energy) publishes the ordinance with the guidelines, expected in the coming weeks, and that the battery capacity reserve auction is held this year. We understand that it is possible that this auction will take place in November,” he said.
He concluded by emphasizing that the best response to the cancellation of the previous auction would be to accelerate the battery auction, ensuring that by 2025, Brazil signs a significant contract for at least 2 GW in storage capacity for reserves.
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