See also our previous update on the initial developments relating to energy storage and the Public Consultation conducted by the MME on the subject. MME Public Hearing No. 202/2025LRCAP 2026 – Battery Storage Systems
The electricity sector recorded, in early June 2026, new developments relating to the integration of Battery Energy Storage Systems (“BESS”) in Brazil: the Brazilian Electric Energy Agency (“ANEEL”) advanced in the definition of the regulatory treatment applicable to these assets, whilst the Ministry of Mines and Energy (“MME”) published the guidelines and framework for the conduct of the first two auctions specifically aimed at the contracting of power capacity through batteries.
In this context, although the initiatives occurred simultaneously, each has a distinct object: whilst ANEEL addressed the regulatory integration of storage systems and their interaction with existing sectoral rules, the MME established the conditions for contracting these resources through the Capacity Reserve Auctions in the Form of Power (“LRCAP”).
ANEEL: DELIBERATION ON THE REGULATORY TREATMENT OF BATTERY ENERGY STORAGE SYSTEMS
On 2 June 2026, ANEEL’s Board of Directors deliberated on aspects relating to the classification and integration of storage systems into the electricity sector, concluding a relevant stage of the regulatory process initiated to govern the operation of these assets in the National Interconnected Grid (“SIN”).
The decision approved, in broad terms, two complementary regulatory strands: (i) a specific act aimed at establishing rules for the authorisation and regulatory classification of BESS; and (ii) amendments to existing sectoral regulations to accommodate the integration of these assets into the regulated environment.
Within the scope of this deliberation, the definition of the treatment applicable to the use of the grid by storage systems was particularly prominent. Given that these assets operate on a bidirectional basis, withdrawing energy from the grid during charging and injecting energy during discharging, ANEEL differentiated the tariff treatment according to the mode of operation of the project. Accordingly, for systems operated entirely under the command of the National Grid Operator (“ONS”), particularly when used as a systemic resource, the deliberation established that tariff charges would apply only to the energy outflow. On the other hand, for autonomous systems or those that do not operate entirely under ONS dispatch, charges associated with both moments of grid use, during both the charging and discharging of the BESS, remain applicable. In practice, this treatment reflects the recognition that, in such situations, the storage system alternates between behaviour akin to consumption and behaviour akin to generation.
In addition to the tariff framework, the deliberation also addressed aspects relating to:
- the conditions for connection and operation in the SIN;
- the interaction of BESS with generation, transmission and consumption facilities, and the allocation of charges and operational responsibilities;
- the provision of ancillary services;
- the participation of these assets in different contracting environments; and
- the possibilities of autonomous operation or operation in association with other assets.
At the operational level, ANEEL provided for subsequent regulatory developments for the implementation of the decision. In this regard, a notable measure is the requirement for the ONS to submit a proposal to update the Grid Procedures within a deadline set by the Agency, with a view to incorporating technical and operational requirements and specific criteria for the connection and operation of BESS. Furthermore, the decision also encompasses measures aimed at enhancing transparency regarding the connection conditions and integration of these projects into the system.
As of this date, the rules resulting from ANEEL’s deliberation have not yet been published by the agency.
Accordingly, whilst the deliberation represents a significant step forward in defining the regulatory treatment of BESS, its implementation will still depend on the issuance of complementary acts and the adaptation of the applicable operational instruments.
MME: GUIDELINES FOR THE FIRST BATTERY STORAGE AUCTIONS
Following this regulatory development, on 3 June 2026, the MME published Normative Ordinance No. 136/2026, establishing the guidelines and framework for the conduct of the Capacity Reserve Auctions in the Form of Power aimed at contracting new BESS.
The Ordinance provides for the conduct of two separate auctions:
- The first corresponds to the 2026 LRCAP – National Storage, intended for projects that meet the minimum localisation requirements defined on the basis of the accreditation criteria of the Brazilian Economic and Social Development Bank (“BNDES”).
- The second corresponds to the 2026 LRCAP – Storage, open to all other BESS, regardless of national content requirements.
In both cases, the objective is the contracting of power availability, expressed in megawatts (MW), rather than the supply of electric energy, through new BESS. Accordingly, the winning projects will enter into Power Capacity Reserve Contracts (“CRCAPs”), with a term of 15 years and a scheduled supply commencement date of 1 August 2028.
Furthermore, the Ordinance established minimum technical parameters for the participation of projects, including:
- a minimum availability of 30 MW;
- the capacity for continuous operation for at least four hours;
- a minimum total efficiency of 85%;
- a maximum limit for full recharging; and
- compliance with the technical requirements established by the ONS and the Energy Research Company (“EPE”), including functionalities related to system operation.
In addition to the minimum technical requirements, another notable aspect is the provision of locational mechanisms for competitive purposes. In this context, the Ordinance establishes specific treatment for projects connected at certain points of the SIN previously identified as capable of generating additional systemic benefits, pursuant to studies conducted by the EPE and the ONS: a bonification in accordance with the localization of the project.
Furthermore, the Ordinance regulated aspects relating to:
- the registration and technical qualification of projects (12 hours of June 15, 2026 to 12 hours of July 31st, 2026);
- the use of the system’s remaining capacity; the sharing of facilities;
- dispatch and operating rules; and
- the obligations and penalties applicable to the contracts.
Accordingly, the operationalisation of the auction will still depend on the publication of subsequent acts (especially the issuance of the relevant Bidding Rules by ANEEL).
NEXT STEPS
In summary, the recent developments occurred on complementary regulatory fronts. On one hand, ANEEL advanced in the definition of the rules applicable to the integration of BESS into the electricity sector and initiated the regulatory and operational implementation stage of these measures. On the other hand, the MME structured the first large-scale contracting mechanism dedicated to the technology.
In this context, over the coming months, the sector’s attention is expected to focus on the publication of the complementary acts associated with the operationalisation of the LRCAP and on the implementation of the regulatory definitions approved within the scope of ANEEL.