Over the past several years, electricity storage has occupied a curious position within the Brazilian power sector. Although widely recognised as one of the most promising technologies for addressing the challenges of operational flexibility, integration of variable renewable energy sources, and capacity adequacy, its incorporation into the national legal and regulatory framework remained surrounded by uncertainty.
The issue gained particular relevance in the wake of the rapid expansion of wind and solar generation within the Brazilian electricity matrix and the increasing frequency of curtailment episodes, which highlighted the need for solutions capable of storing surplus energy and shifting its utilisation to periods of greater systemic value.
The absence of a statutory definition of the activity, compounded by the lack of specific rules governing authorisation, network access, tariffing, and remuneration, rendered storage one of the most significant pending items on ANEEL's (Agência Nacional de Energia Elétrica) regulatory agenda.
The construction of this regulatory framework began with Public Consultation Nº 11/2020 (Tomada de Subsídios nº 11/2020), which resulted in the development of a regulatory roadmap for the integration of storage systems into the National Interconnected System (Sistema Interligado Nacional – SIN).
Since then, the subject has occupied a prominent position on ANEEL's agenda, with the principal forum for these discussions being Public Consultation Nº 39/2023, through which the Agency addressed issues central to the consolidation of the activity, including the applicable authorisation regime for storage operators, network access and usage rules, the applicability of sectoral tariffs and charges, participation in the energy market, and the integration of storage with other segments of the sector.
Following successive rounds of contributions, regulatory impact analyses, technical assessments, the enactment of Law Nº 15.269/2025, and extensive deliberations within the Board of Directors (Diretoria Colegiada), the process was ultimately concluded by ANEEL on 2 June 2026.
The outcome consolidated the figure of the storage operator within the Brazilian regulatory framework, established a dedicated authorisation regime for storage systems, and defined specific rules governing network access and usage.
On the most contentious issue raised during the public consultation — the applicability of network usage tariffs — the Agency adopted a differentiated approach, providing for distinct treatment of storage systems coordinated by the National System Operator (Operador Nacional do Sistema Elétrico – ONS) and those operated independently.
The decision represents a significant step forward in legal certainty for the sector and establishes the regulatory foundations necessary for the integration of storage as a permanent resource for flexibility, reliability, and capacity adequacy within the SIN.
In near-simultaneous fashion, the Ministry of Mines and Energy (Ministério de Minas e Energia – MME) published, on 3 June 2026, Normative Order Nº 136/2026 (Portaria Normativa nº 136/2026), setting out the guidelines for the first Capacity Reserve Auctions in the form of Capacity Procurement through new Battery Energy Storage Systems.
The Order provides for the holding of two distinct competitive proceedings. The first, designated LRCAP 2026 – National Storage (Armazenamento Nacional), is scheduled for 2 December 2026 and is intended for the procurement of battery storage systems subject to domestic content requirements.
The second, designated LRCAP 2026 – Storage (Armazenamento), will be held on 4 December 2026 and has a broader scope, without the specific requirement for nationalisation, and will be conducted on a complementary basis to the first.
The division between the two proceedings, as adopted by the MME, responds to one of the principal discussions that preceded publication of the Order: how to reconcile the development of a domestic battery manufacturing supply chain with the need to rapidly enable the expansion of storage capacity in the country.
In both proceedings, the object of the procurement is not the sale of electrical energy per se, but rather the provision of capacity to the system. The model adopted by the MME seeks to remunerate the capability of storage systems to provide support to the SIN when called upon, reinforcing the role of batteries as a resource for capacity adequacy and systemic reliability.
The design adopted by the Ministry seeks to balance two distinct objectives. On the one hand, to foster the development of a domestic supply chain for storage systems through the proceeding subject to local content requirements. On the other, to ensure broader competition and expanded installed storage capacity through the second auction, open to projects not subject to the same nationalisation constraint. The concern with domestic content does not appear as an ancillary element of the Order.
On the contrary, it constitutes one of the central components of the model proposed by the Ministry. To participate in the LRCAP 2026 – National Storage proceeding, projects will be required to demonstrate compliance with the minimum nationalisation requirements set out in the BNDES (Banco Nacional de Desenvolvimento Econômico e Social) Accreditation Regulations for Stationary Battery Energy Storage Systems, through the CFI System.
This requirement is not confined to the qualification phase of the proceeding. The execution of the Capacity Reserve Contract (Contrato de Reserva de Capacidade – CRCAP) will be conditional upon the demonstration of accreditation before ANEEL, and the developer will be required to demonstrate, throughout the entire implementation phase, the use of duly accredited storage systems, subject to the application of penalties and potentially the termination of the contract.
The structure adopted reflects the MME's intention to use the first cycle of storage procurement not merely as an instrument for expanding system capacity, but also as an industrial policy mechanism directed at the development of the domestic battery industry.
The publication of the Order does not, however, bring the definitions required for the holding of the proceedings to a close. On the contrary, it inaugurates a new phase of the process. Whilst the MME has established the general guidelines for the auctions, it will now fall to ANEEL to draft the respective tender documents and CRCAP templates, regulating essential aspects concerning the participation of agents, contractual performance, and the oversight of projects.
Furthermore, the timetable set out in the Order establishes a series of preparatory stages, including the registration of projects with EPE (Empresa de Pesquisa Energética), the technical qualification of projects, and their subsequent accreditation for participation in the proceedings.
In this context, Chapter III of the Order assumes particular relevance in setting out the guidelines for the drafting of tender documents and CRCAPs. The Ministry opted to structure long-term contracts (15 years), with supply commencement scheduled for 1 August 2028, with a view to conferring revenue predictability and financial bankability on the projects.
The model signals that storage is being treated as a strategic resource for the expansion of power system reliability, aligning with the logic already applied in other Capacity Reserve Auctions.
Another relevant feature of the Order is the adoption of locational signalling mechanisms. The MME authorised the use of bonus factors associated with pre-defined busbars, enabling the proceedings not only to procure additional capacity but also to direct the deployment of storage systems to regions of greater criticality to the SIN, such as the North-East and the state of Minas Gerais.
This measure seeks to capture systemic benefits associated with the location of projects, particularly in areas subject to transmission constraints, high curtailment rates, or the need for network support.
The selection of eligible busbars demonstrates that public policy on storage is now engaging directly with one of the most significant challenges currently facing the Brazilian power sector: the growth of renewable generation curtailment for operational reasons.
Whilst storage may provide a broad range of electrical services, the concentration of incentives in regions with high penetration of wind and solar sources suggests that mitigating the impacts associated with curtailment played a significant role in the model adopted by sectoral planning.
This choice demonstrates that the objective of the auction is not simply to procure storage capacity, but to utilise the technology as an instrument of power system planning and operational optimisation. In other words, the value of storage will be measured not only by the quantity of capacity made available, but also by its ability to meet the specific needs of the SIN at strategic points within the network.
The publication of Normative Order Nº 136/2026 marks a significant shift in the regulatory trajectory of storage in Brazil. If the past several years were devoted to constructing the legal and regulatory foundations necessary for the integration of storage systems into the power sector, the debate now enters a new phase: that of implementation.
The conclusion of Public Consultation Nº 39/2023 by ANEEL and the publication of the guidelines for the first LRCAP for batteries demonstrate that storage has ceased to be treated as an experimental technology and has assumed an effective role in the planning of the expansion and operation of the SIN.
Significant challenges nonetheless remain, particularly with respect to the implementation of the new rules, the drafting of tender documents by ANEEL, and the consolidation of the business models that will emerge from this new regulatory framework.
Even so, the developments observed this week signal that 2026 is likely to be remembered as the year in which storage ceased to occupy a peripheral position in the regulatory debate and became, definitively, an integral component of the Brazilian power sector's expansion strategy.