Brazil energy sector pushes for capacity reserve auctions

The Brazilian energy sector is focusing on capacity reserve auctions and storage technology. Abrage (Associação Brasileira das Empresas Geradoras de Energia Elétrica) is advocating for a 2027 auction specifically for pumped-storage hydroelectric systems (SAH), which could begin delivering projects by 2030.

In parallel, Aneel (Agência Nacional de Energia Elétrica) is working to accelerate regulations regarding cost-sharing for battery storage. This move aims to provide greater security for participants in the upcoming capacity reserve auction scheduled for December, which seeks to contract approximately 6,000 MW of power with 15-year contracts. While current legislation requires costs to be shared among generating agents, Aneel is debating whether to advance the definition of these cost-sharing formulas to ensure market stability before the auction.