Portugal to Launch Battery Energy Storage Auction Before January 2026

Portugal is preparing to hold a competitive auction for 750 MVA of battery energy storage capacity before January 2026. This initiative is part of a €400 million investment package designed to improve energy storage deployment, enhance grid resilience, and prevent future power disruptions.

Strengthening Grid Reliability

The plan follows a major blackout in April, which originated in Spain and temporarily affected parts of Portugal. Although an official investigation is still underway, the country’s power network is generally regarded as secure and stable. These new measures are intended to reinforce the grid and modernize the nation’s energy storage infrastructure over the next several years.

The €400 million investment will fund 31 initiatives across five key areas:

• Improving national grid security and resilience,
• Enhancing transmission network planning,
• Accelerating the rollout of renewable energy,
• Boosting preparedness of critical infrastructure, and
• Advancing international energy cooperation.

Expanding Battery Energy Storage and Grid Capabilities

One significant measure will double the number of black start-capable power plants from two to four. The Baixo Sabor and Alqueva plants will join the existing Tapada do Outeiro and Castelo de Bode facilities starting in January.

Additionally, €137 million will be allocated to upgrade and modernize the grid’s operational and control capacity. A separate €25 million grant program will fund backup infrastructure for critical facilities such as hospitals, water utilities, and energy providers, further strengthening the role of battery energy storage systems in supporting essential services.

Streamlined Renewable Energy Development

The plan also introduces policy reforms aimed at speeding up renewable and energy storage deployment:

• Requiring community participation in renewable project approvals,
• Creating a “Green Map” of pre-approved development zones supported by a strategic environmental study to shorten permitting timelines,
• Simplifying regulations for self-consumption and community energy initiatives.

Regional Cooperation and Consumer Impact

Portugal and Spain will work together to improve power interconnections with the rest of Europe, bolstering cross-border grid stability and supporting the wider integration of battery energy storage systems.

The cost impact on consumers is expected to be minimal—estimated at just €0.01 per €25 on an electricity bill (around 0.04%). Officials have positioned the initiative as a cost-effective “insurance policy” to secure the country’s energy future.