Brazil approves new rules boosting reversible hydroelectric storage

On 2 June 2026 Brazil’s electricity regulator ANEEL, together with the National Energy Policy Council (CNPE), issued Resolution 8/2026 that creates a competitive framework for contracting pumped‑storage (reversible) hydroelectric plants. The rules allow the procurement of hydraulic storage through auctions and other mechanisms, aiming to capture excess solar and wind generation and to smooth the “sunset ramp” when photovoltaic output falls sharply in the late afternoon.

The regulation introduces a differentiated treatment for grid‑use charges: autonomous plants fully controlled by the system operator can receive special tariff treatment, while freely‑operated projects remain subject to general rules. Industry experts say the new model could reduce renewable curtailment, lower reliance on costly thermal plants, improve transmission utilisation and enhance reliability during peak periods. For consumers, the potential benefit is a containment of system‑wide costs rather than an automatic tariff cut. The technology, described by the International Hydropower Association as a major “water battery”, currently totals 189 GW worldwide, with about 600 GW of projects under development.