O MME (Ministry of Mines and Energy) opened this Friday (27) the Public Consultation No. 176/2024, which presents for discussion with society the preliminary draft of the Ordinance of Guidelines for the Capacity Reservation Auction in the form of Power, with storage systems, scheduled for June 2025.
O Deadline for contributions is October 28, 2024. According to the Ministry, the main innovation of this auction is the contracting of storage systems using batteries.
A inclusion of these systems in the Brazilian electrical matrix has stood out in discussions on planning in the electricity sector in recent years, due to their instant response capacity and the operational and locational flexibility they offer.
“A The purpose of the battery auction is to boost technology in Brazil, so that it can contribute to a more reliable, resilient, accessible and competitive electrical system”, said the Minister Alexandre Silveira.
Evaluation of ABSOLAR
In the view of ABSOLAR (Brazilian Photovoltaic Solar Energy Association), the opening of Public Consultation No. 176/2024 represents an important step towards increasing the competitiveness and security of the national electricity system. The measure could bring structural gains to the operation of the electricity matrix and help accelerate the energy transition towards a greener and more sustainable economy in Brazil.
For the entity, storage technologies can help reduce the use of emergency fossil-fueled thermoelectric plants and save hydroelectric reservoirs, benefiting consumers with lower tariffs over time. Additionally, storage systems help increase the participation of renewable, cleaner and more competitive sources in the Brazilian electricity matrix, including solar energy.
MME Ordinance No. 812/2024, which opened the Public Consultation, establishes technical parameters to optimize meeting the power needs of the SIN (National Interconnected System), such as a minimum power of 30 MW for storage systems and requirements for their continuous operation for at least four hours a day.
“Electric energy storage can help structurally reinforce the security of the Brazilian electrical system. Additionally, storage systems can be combined with solar sources to provide consumers with greater independence, autonomy, versatility and control over their electricity use,” he explained. Rodrigo Sauaia, CEO of ABSOLAR.
“Amid the climate crisis that is already having a major impact on Brazil, solar power has sured 47 GW of installed power. This has already prevented the emission of 57 million tons of CO2 in electricity generation. By associating photovoltaic generation with batteries, we can reduce the need for emergency fossil fuel thermoelectric plants, with a consequent reduction in pollutant and greenhouse gas emissions, improving air quality for the population,” he added.
Another benefit brought by storage is the possibility of reducing the waste of renewable energy, whose enterprises have suffered recurring cuts determined by the ONS (National Electric System Operator). Instead of being wasted, this renewable and competitive energy could be stored, for use in times of need by the system.
Ronaldo Koloszuk, Chairman of the Board of Directors of ABSOLAR, recalls that the greater insertion of renewable generation with batteries would help to slow down the rise in inflation in Brazil, which has increased mainly due to tariff adjustments in Brazilians' electricity bills.
“In September of this year alone, the IPCA (Broad National Consumer Price Index) recorded a 0,84% increase in the price of electricity, due to the use of more emergency fossil fuel thermoelectric plants, which was the main factor behind the increase in the index during the period,” he pointed out.
“Therefore, the inclusion of electricity storage technologies in the capacity reserve auction paves the way for Brazil to advance, with greater force, in the energy transition and in the decarbonization of economic activities in productive sectors, using more sustainable, safe and competitive solutions”, concluded Koloszuk.
ABSAE Assessment
A ABSAE (Brazilian Association of Electric Energy Storage Solutions) considers the announcement made by the Minister of Mines and Energy to be a significant step forward. “Given the growth of non-dispatchable sources, changes in consumption levels and the increasingly adverse impacts of climate change, it is urgent to contract dispatchable sources, capable of providing energy security and operational flexibility to the Brazilian electrical system.”
“Large-scale storage systems, coupled to renewable plants, or carried out independently, are essential to supply power in times of high load, absorb surpluses from renewable generation and provide electricity grid stabilization services (ancillary services),” said the Association, in a note.
According to ABSAE, the contracting of storage systems as a capacity reserve could be carried out quickly, especially if the Ministry of Mines and Energy opted to contract systems coupled to renewable plants. “It is worth noting that for this modality, there are no regulatory obstacles and the adjustments to be made to the contracts used for the capacity reserve auction would be minimal,” they concluded.
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