Brazil spent decades building an integrated electrical system, capable of connecting very different regions and operating a matrix with a strong presence of renewable sources.
But this system was designed for another reality. Large plants, long transmission lines and more predictable demand formed the basis of the model we know. Today, the expansion of solar and wind generation, the electrification of the economy, the advancement of data centers and the digitalization of consumption require another response.
That’s why, scheduled for December 2026, it had so much weight for those who have been following this debate for years.
Storage is no longer treated as a distant promise and has become part of Brazilian electrical infrastructure planning.
The “captainties” of the electricity sector
I often say that the Brazilian electricity sector has its own hereditary captaincies. Generation, transmission, distribution, commercialization and consumption were organized into well-defined territorieseach with its own rules, forms of remuneration and different players and interests. This design helped structure the sector, but it also created borders that were difficult to cross.
The battery does not respect these divisions. It can support generation, alleviate transmissionreinforce distribution, serve an industrial consumer and provide services to the system. It operates precisely between the borders that the sector has learned to protect.
That was one of the reasons the debate took so long. The technology was already ready and advancing in other markets while, here, we were still discussing where storage should fit.
“In Brazil, it is often more difficult to convince than to do.”
Anyone who followed this agenda closely knows how much it took to insist, present data and return to the table. The auction was born after years of technical work, institutional coordination and regulatory maturity.
A market that begins to gain scale
The auction guidelines recognize one important change: Storage is now treated as a strategic asset for energy security.
The potential includes large projects connected to the system, applications in industries and commerce, distributed generation, electric mobility and isolated systems.
Renewable generation is growing rapidly. Solar energy already occupies millions of roofs and land. New loads, such as data centers, require continuous, high-quality supply. At the same time, the system needs to deal with moments of excess supply and times of greater demand.
The battery comes in exactly there. It stores energy when it is available and delivers it when it is most needed. It also reduces operational restrictions, improves the use of existing infrastructure and increases supply reliability.
For decades, the sector’s expansion was discussed along two axes: more generation and more transmission. They remain fundamental, but they are no longer enough. New electrical infrastructure needs flexibility.
Flexibility as infrastructure
It is not enough to know how many megawatts the country has installed. It is necessary to know when this energy will be available, for how long and how quickly the system will be able to respond.
Batteries balance variations in solar and wind generationoperate at times of greatest demand and give the operator more options in critical situations.
This changes the planning logic. Instead of looking only at physical expansion, the sector is now also considering operational intelligence and the best use of existing assets.
In a continental country, where building a transmission line can take years, making better use of the available infrastructure is an economic and strategic decision.
The relationship with the new economy
Reliable energy has become one of the criteria for installing data centers, artificial intelligence operations, industrial plants, mining projects and new technology hubs.
These investments consider price, stability, risk of interruption, network capacity and possibility of expansion.
Brazil has a renewable matrix and energy resources on a large scale. This advantage only becomes competitive when energy arrives with cost, quality, safety and predictability.
Therefore, the auction is of interest to the electricity sector, industry, investors and the country’s development.
What really starts in December
The auction will not solve all storage challenges. It will still be necessary to improve remuneration rules, access to networks, participation in energy markets and provision of services to the system.
It will also be necessary to define how Brazil will participate in the industrial chain of this market, with the capacity to generate technology, jobs and new skills.
The main change has already happened. Storage has officially entered national planning.
After years of discussing whether batteries should be part of the system, the country is beginning to discuss how to use them at scale.
The last century was marked by the construction of large power plants and the integration of the territory through the National Interconnected System. The stage that begins now will be defined by the ability to make this infrastructure more flexible, efficient and prepared for a digital economy.
Perhaps the auction will be remembered as the moment when the sector began to leave its captaincies behind.
* Marcelo Rodrigues is an electrical engineer, advisor at UCB Power, co-founder of the Brazilian Association of Energy Storage Solutions (Absae) and partner at MR Partners and 2EX Energy
Articles published by CNN Infra seek to stimulate debate, reflection and shed light on views on the main challenges, problems and solutions faced by Brazil and other countries around the world. The texts published in this space do not necessarily reflect the opinion of CNN Brasil.
