Brazil adopts regulatory framework for energy storage systems.
Brazil’s electricity regulator, Agência Nacional de Energia Elétrica (ANEEL), has approved long-awaited regulations for energy storage systems and their connection to the power grid. The decision paves the way for the large-scale deployment of battery energy storage systems (BESS), ending the current dominance of smaller industrial installations located directly at customer sites.
Preparing for Capacity Auctions and Major Grid Fee Incentives
The regulations were introduced ahead of the publication of guidelines for a battery-focused capacity reserve auction, which, according to Brazil’s Ministry of Mines and Energy, is expected to take place before the end of 2026.
The new framework preserves provisions allowing developers who pair energy storage with power generation facilities to reduce transmission and distribution network charges by as much as 30%.
The rules also introduce special incentives for standalone battery storage systems that are centrally dispatched by the national grid operator, ONS (Operador Nacional do Sistema Elétrico). These facilities will pay network charges only as electricity generators, avoiding the double charging that would otherwise apply to both battery charging and discharging.
In contrast, storage systems that are not centrally dispatched will be required to pay network fees both as electricity consumers and as generators.
Industry Celebrates a Milestone Amid Falling Battery Prices
Fabio Lima, Executive Director of the Brazilian Energy Storage Association (ABSAE), described the finalization of the regulations as a major milestone that provides investors with much-needed certainty ahead of the upcoming auctions.
ABSAE experts also highlighted that the continued decline in lithium-ion battery costs has attracted strong international interest in the Brazilian market. New battery storage systems are expected to play a crucial role in stabilizing the grid as solar and wind power capacity expands rapidly, helping to reduce the overall cost of operating Brazil’s electricity system.