Takeaway: Brazil's Minister of Mines and Energy, Alexandre Silveira, announced that Brazil’s first battery tender is expected to take place in the second half of 2026, within the framework of the National Interconnected System's Capacity Reserve mechanism.
Through the auction, the government will select companies to install and operate utility-scale battery systems connected to the national grid — assets designed to store electricity during periods of excess generation and discharge it when demand rises or supply falls short. The primary goal is to better integrate intermittent renewable sources, particularly solar and wind, and to reduce reliance on fossil-fuel thermal dispatch.
This represents a significant step forward, as Brazil has not previously had a formal procurement mechanism for grid-scale energy storage. The rapid expansion of solar and wind capacity has exposed a structural gap: without storage, the grid must fall back on thermal plants to balance supply and demand. The auction establishes the regulatory framework to address this challenge.
The government is also considering the inclusion of progressive local content requirements in the tender documents, with the aim of developing Brazil's domestic battery supply chain. The Brazilian Association of Energy Storage Solutions estimates that this technology could deliver savings of over BRL 3 billion per year to the electricity system.
Originally scheduled for April 2026, the auction was delayed due to technical discussions over the remuneration model. The Ministry of Mines and Energy's regulatory order is the outstanding instrument required before the tender notice can be drafted and published. According to Brazil's Ten-Year Energy Expansion Plan, national electricity demand for battery storage is projected to exceed 6 gigawatts by 2035.
The MAC Advogados team closely monitors developments in Brazil's energy storage regulatory landscape. We advise clients across the power sector on contractual questions, and the conduct of disputes arising from procurement proceedings, including bid challenges, administrative appeals, and litigation.