BNDES targets R$ 34 billion for Brazil's first battery storage auction

The Brazilian Development Bank (BNDES) estimates it can provide up to R$ 34 billion in incentivized credit lines to finance Brazil’s first battery energy storage system (BESS) auction, scheduled for December 2026. These funds, drawn primarily from the Climate Fund and the BNDES Mais Inovação program, aim to support projects totaling over 296 GW of registered power.

To encourage domestic manufacturing, the auction will include specific competition criteria for local content. Companies including WEG, Moura, You.On, TBEA, Gotion, Trina, and BYD have expressed commitments to manufacture equipment within Brazil, pending technical verification. Due to funding caps, such as the R$ 1 billion annual limit per economic group from the Climate Fund, investors may need to combine BNDES resources with debentures and multilateral financing.

The upcoming Capacity Reserve Auction (LRCAP) 2026 represents a structural shift in the Brazilian electricity sector. Following Law No. 15.269/2025 and MME Ordinance No. 136/2026, energy storage is now recognized as a distinct activity. Unlike traditional energy auctions that focus on volume, this auction prioritizes power availability and reliability, ensuring systems are ready to supply the National Interconnected System when called upon.