Aneel signs major energy transmission and hydroelectric contracts in Brazil

The Brazilian National Electric Energy Agency (Aneel) has formalized several major energy sector developments. The agency signed contracts for the second stage of the 2026 Transmission Auction, involving investments estimated at R$ 1.75 billion. These projects, located in Mato Grosso, Mato Grosso do Sul, and São Paulo, are expected to create over 4,000 jobs. Additionally, Aneel finalized contracts for the expansion of five hydroelectric plants—UHE Foz do Areia, UHE Jaguara, UHE Luiz Gonzaga, UHE Segredo, and UHE São Simão—to increase power availability in the National Interconnected System.

Parallel to these developments, preparations are underway for Brazil’s first battery storage auction scheduled for December. The auction has attracted significant interest from major companies including Petrobras, Axia, Engie, Taesa, and Isa Brasil. While approximately 6,000 projects have been registered, experts anticipate the actual contracted capacity will be between 4 GW and 5 GW, with potential investments reaching R$ 25 billion. WEG has also been cleared by BNDES to compete in this auction for large-scale battery energy storage systems (BESS).

However, industry experts from the Brazilian Association of Energy Storage Solutions (ABSAE) have warned that any delay in the battery auction could lead to a power deficit by 2028. There is ongoing debate regarding the cost-sharing rules between generators and consumers for these storage solutions.