Portugal sets September auction for 1.05 GW of energy storage

The Portuguese government said the auction forms the first step of its National Electricity Storage Strategy, which also targets 3.9 GW of pumped hydro storage by 2030. The targets rise to 4.5 GW of battery storage and 5.26 GW of pumped hydro by 2040.

The 750 MW auction will cover standalone battery energy storage projects, while a further 300 MW will be allocated to surplus grid capacity linked to renewable energy projects that include storage. The government said projects will be located at strategic grid nodes including Rio Maior, Abrantes, Sines-Santo André, Alcochete-Palmela, Pegões-Divor, Estremoz, and Tavira. It also plans future tenders for pumped hydro projects, subject to European Commission state aid approval.

The strategy introduces a revenue-sharing mechanism for municipalities hosting storage projects. Local authorities will receive 30% of revenue generated by the National Energy System through standalone storage auctions and up to 70% from projects using surplus grid capacity. Developers will also be required to allocate 2.5% of net revenue to local community benefit measures, while agrivoltaic projects will receive a 20% bonus during the auction process.

The storage strategy forms part of broader electricity market reforms that include fixed-price electricity supply contracts with minimum one-year terms, measures to strengthen protections for vulnerable consumers, simplified rules for self-consumption and energy communities, and support for long-term power purchase agreements (PPAs).

Portugal also recently announced a capacity market open to storage, generation, and demand-side resources.

From pv magazine España