By Alexandre Leite and Henrique Mattia
In the first days of January, the Ministry of Mines and Energy (MME) published the guidelines for the Capacity Reserve Auction in the “LRCAP” Power format, via Normative Ordinance No. 96/2024.
The auction, scheduled for June 27, 2025, ended up favoring plants existing thermoelectric plants and natural gas with exclusive power products for such (2025, 2026, 2027, 2028 A, 2029 A and 2030 A), with 10-year contracts.
This choice by the public authorities represents a solution to a growing number of thermoelectric plants that have energy contracts that are about to expire, but that still have valid licenses and technical means to contribute to the SIN (National Interconnected System).
The mismatch between the regulated contracts of the UTEs and their agreement term has been a problem in recent years, as it has not yet found a clear solution, since such plants would still have to bear the connection charges.
In the same auction, in addition to exclusive products for existing thermoelectric plants, products for new energy UTEs powered by biofuels or natural gas and for hydroelectric plants were also included.
MME changes auction rules to increase participation of existing thermoelectric plants
This factor was possible through projects to expand installed capacity, through the installation of new generating units in existing hydroelectric plants dispatched centrally, and which were not extended or tendered under the of Law No. 12.783, both with 15-year contracts.
Furthermore, it is noted that the auction did not foresee the participation of batteries, under the allegation of the need for greater understanding of the technology and the development of adequate regulation.
Batteries can be important solutions to ensure greater flexibility in the renewable matrix as they are a rapid response technology, being especially useful to face challenges such as the “duck curve” – a drop in intermittent generation in the late afternoon – and they also serve to help mitigate the curtailments relatively immediately, carrying out work to reinforce transmission, for which there is already a precedent such as the Research and Development (R&D) of ISA CETEP (authorized as reinforcement), since they are capable of absorbing excess generation at other times, as seen in the country, especially in the northeast region.
The exclusion and its justification demonstrate the need and urgency of regulatory improvement for storage systems, which will still undergo studies in a second phase of the public consultation, open since December 10, 2024, scheduled for approval only in the second half of 2025, according to the regulatory agenda of the National Electric Energy Agency (ANEEL).
In this scenario, the presence of renewable sources, combined with storage solutions in the capacity auction, is a relevant component for maximum use of our renewable sources.
All technologies play essential roles in the system. Hydroelectric plants (“long-term batteries”) and thermal plants can operate during periods of drought, without the need for emergency auctions (which are extremely expensive), and the use of batteries can contribute to quick and more efficient, and therefore cheaper, solutions for the flow of renewable energy generated in the NE.
The important thing is the multiplicity of solutions aimed at greater competitiveness for the events, which only benefits the energy security of the SIN.
The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.
