Ministry of Mines and Energy plans annual capacity auctions with new technologies through 2029

The Ministry of Mines and Energy plans to hold annual capacity auctions through 2029, opening the door for innovative technologies, batteries, and sustainable power plants in the energy transition.

Brazil’s electricity sector is moving toward a profound transformation in supply security. The MME has formalized a strategic plan that establishes regular capacity auctions scheduled at least through the end of the decade.

The initiative aims to ensure the stability of the national power grid by integrating new technologies. In doing so, the government is paving the way for the decarbonization and modernization of the country’s energy matrix.

Strategic timeline for system security

The publication of the official schedule details the guidelines for contracting new capacity. The plan ranges from small power plants to advanced storage systems.

The first significant steps for the inclusion of batteries are scheduled for late 2026. Starting the following year, these devices will permanently become part of the SIN capacity auctions.

New technologies gain traction in auctions

The second half of 2027 will mark the entry of innovative solutions into the regulated market. Pumped-storage hydroelectric plants and thermal plants powered by waste, biogas, and biomethane will be able to compete for supply contracts.

Experts point out that diversification is vital for system resilience.

The introduction of storage systems and flexible clean sources represents a milestone for the modernization and reliability of the national electrical infrastructure.

The implementation of each stage of the schedule will depend on in-depth technical studies. EPE and ONS will be responsible for validating the actual need for supply expansion.

With these measures, the federal government seeks to anticipate the challenges of expanding intermittent sources, such as solar and wind. The goal is to ensure a continuous and efficient supply aligned with global sustainability targets.