Brazil’s Ministry of Mines and Energy is expected to publish in April 2026 the ordinance establishing the regulatory framework for the country’s first auction dedicated to large-scale battery energy storage systems.
The auction will be conducted under the Capacity Reserve Auction (LRCAP) mechanism and aims to contract storage capacity capable of supporting grid reliability as renewable energy generation expands.
Projects selected in the auction are expected to receive capacity reserve contracts with terms of approximately ten years, with supply scheduled to begin in August 2028.
Key legal and regulatory issues
Developers considering participation in the storage market should monitor regulatory developments related to:
- energy storage classification within the regulatory framework
- grid connection and dispatch rules
- contractual obligations under capacity reserve mechanisms
- project financing and revenue certainty
Energy storage is increasingly viewed as a critical element for enabling higher penetration of renewable energy in Brazil’s power system.
Photo: Canva
