Power transmission companies will need a green light from Aneel to compete in the upcoming auctions for battery energy storage systems (BESS).
The Brazilian electric sector is experiencing a new round of regulatory debates essential for the expansion of clean energy.
A recent legal opinion from the Federal Prosecutor’s Office attached to the National Electric Energy Agency established that power transmission concessionaires are free to compete in future capacity reserve auctions involving battery systems, provided they receive prior approval from the regulatory agency and comply with strict contractual requirements.
The discussion gained momentum following a request from Taesa, which sought to confirm with the regulator the feasibility of entering capacity auctions (LRCap) autonomously.
Although the legal understanding rules out any legal prohibition against these companies exploring segments outside their original contracts, the regulatory authority emphasizes that expanding into new technological fronts requires prior validation.
Subsidiaries and regulatory safeguards
The technical document indicates that operating in energy storage auctions can occur through subsidiaries or special purpose entities.
However, this corporate structure does not eliminate the requirement for regulatory consent, ensuring that the operation takes place without mixing the assets of the main concession with the new business ventures.
For approval to be granted, companies will need to demonstrate real economic benefits for consumers, ensuring tariff moderation through the total or partial reversal of the revenues obtained.
The supervision of these guidelines will fall under the purview of Aneel‘s Superintendent of Economic and Financial Supervision.
The sector’s counterpoint and next steps
The decision generated disagreements in the market.
Taesa argues that the current regulatory framework already provides sufficient mechanisms to enable the entry of market agents, making the requirement for prior contractual authorization redundant.
Furthermore, the transmission company argues that battery projects have their own accounting and financing, and should not be treated as accessory transmission revenues.
The company highlighted:
The Brazilian storage market is still under development, and part of the rules remains under construction.
The company reinforced that it will continue evaluating new opportunities with a focus on financial discipline and the energy transition.
With the auctions scheduled for December approaching, the debate over the integration between high-voltage grids and storage technologies remains one of the pillars for the modernization and reliability of the National Interconnected System.
Aneel‘s final stance on each individual request will define the appetite of major transmission companies for this new technological frontier.