Brazil’s Energy Storage Auction (BESS): Powering up the Brazilian power sector?
OWC co-hosts industry event with COSRO and ABEEólica to explore the road ahead for BESS in Brazil
OWC Brazil recently cohosted an industry event in São Paulo with COSRO and ABEEólica, bringing together stakeholders from across the energy sector to discuss Brazil’s upcoming Battery Energy Storage System (BESS) auction, expected for this year.
The event explored perspectives on the “Leilão de Reserva de Capacidade – LRCAP” (Capacity Reserve Auction – specific to BESS), the implications of Brazil’s new regulatory framework for energy storage, and the risks and opportunities shaping the next phase of the country’s power sector.
About Brazil’s BESS Auction
Brazil’s first national BESS auction, enabled by the new regulatory framework, marks a decisive step forward for energy storage in the country.
For the first time, energy storage has been elevated to an independent asset class, on equal footing with generation assets – creating clearer investment signals and a more robust pathway for project development.
The auction comes at a critical moment for Brazil, a market with abundant renewable energy resources but increasing challenges linked to curtailment, grid flexibility, and system resilience.
“This is a major milestone for Brazil. We have vast renewable potential, but also high curtailment. The new regulatory framework and the BESS auction are already stimulating strong market interest, with around 18 GW of potential capacity under consideration.
“To sustain this momentum, the industry must remain focused on long-term strategy and work collaboratively to manage both technical and regulatory risks. This is where experience, robust analysis, and early-stage risk mitigation will be critical.”
Luany Dantas, Country Manager for OWC Brazil
The Event: Turbocharging the way ahead?
The event featured a series of panel discussions examining how Brazil can maintain momentum as the final LRCAP rules are shaped.
Key topics included:
- Ongoing regulatory discussions and their implications for BESS project bankability
- Technical and grid integration risks associated with storage deployment
- Strategies to mitigate regulatory, performance, and delivery risks across the project lifecycle
The discussions highlighted a shared view across the industry: while the auction represents a game‑changing opportunity, success will depend on rigorous preparation, realistic technical assumptions, and a clear understanding of evolving regulatory requirements.
“The auction is only the starting point. Developers, utilities, insurers, and investors need confidence not only in the regulatory framework, but also in project performance, system integration, and long-term operational risk. This is where independent technical expertise plays a vital role.”
Continues Dantas.
Preparing for Brazil’s BESS Opportunity
OWC supports clients across the full BESS project lifecycle, combining global energy storage expertise with deep local knowledge of the Brazilian market.
Our services include:
- Auction support and bid strategy
- Feasibility and bankability studies
- Technical due diligence for lenders and investors
- Owner’s engineering
- Performance and grid integration studies