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EPE Establishes Rules for Pumped-Storage Hydropower Plants to Participate in Energy Auctions

La Muela pumped-storage hydropower plant, operated by Iberdrola in Spain. | Photo: Iberdrola
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The EPE has set technical and operational criteria for qualifying pumped-storage hydropower plants for auctions, boosting energy security and clean energy storage in the country.

To strengthen the stability of the national electricity grid, the Energy Research Office (EPE) has defined guidelines for the registration and qualification of hydraulic storage systems.

The new rules are aimed at accrediting pumped-storage hydropower plants for future sector auctions.

This modality acts as a massive hydraulic battery, using energy during periods of low demand to pump water into an upper reservoir.

During peak hours, the resource is released to generate electricity rapidly, providing operational flexibility to the system.

The technical instructions establish a series of methodological and documentation requirements regarding cycle efficiency, operational limits, and impacts on existing water infrastructure.

Efficiency requirements and grid support

Project developers must demonstrate the continuous capacity for power supply and the time required to replenish water reserves.

In addition, it will be mandatory to detail load variation rates and any plant constraints.

A key criterion is the presentation of the overall cycle efficiency calculation, known in the industry as round-trip efficiency (RTE).

This metric relates the energy generated to the energy consumed during pumping, taking into account electrical and hydraulic losses.

“After the registration deadline, no changes will be permitted to the technical characteristics of the projects, including power, storage capacity, technology, and connection points.”

Another relevant aspect involves the provision of ancillary services to the grid.

Projects must indicate their capability to participate in frequency control, reactive power support, and black start capabilities for the electrical system.

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Water availability and grid connection

The rules also cover reservoir sustainability.

Investors will need to prove water availability, plans for the initial filling, and the replenishment of losses caused by evaporation or seepage.

In the event of hydraulic connections with other projects, it will be necessary to analyze joint operational impacts.

Regarding grid access, documentation must cover both consumption during pumping and injection during generation.

Compliance with environmental requirements, water usage permits, and proof of land usage rights remain indispensable conditions for technical qualification by the EPE.

Mapping and next steps in the market

The guidelines comply with directives established by the National Energy Policy Council (CNPE).

As part of the implementation schedule, the EPE will open a call for projects in November to map initiatives currently under development in the country.

This stage will be consultative and informative, serving to support the structuring of future capacity reserve auctions.

The initiative represents a fundamental step toward integrating long-duration storage solutions into the Brazilian energy matrix.

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