Portugal opens tenders for 1,050 MVA of battery storage capacity

Portugal has opened two competitive procedures to allocate up to 1,050 MVA of grid connection capacity to energy storage projects, with 750 MVA reserved for standalone installations and 300 MVA for renewable power plants with co-located storage. Applications can be submitted until Dec. 22, 2026.

The government announced the two procedures in June, initially scheduling their launch for Sept. 14. It subsequently postponed the tenders following a public consultation on their conditions.

The procedures are being conducted through electronic auctions and mark Portugal’s first tenders of this kind for grid connection capacity since 2021. They were formally launched through orders published on Oct. 22 in the Diário da República, Portugal’s official gazette. The Directorate-General for Energy and Geology (DGEG) subsequently published the auction programs and tender documents.

Both procedures require a minimum bid of 50 MVA per application, with no maximum limit. Developers can participate in both auctions but may submit only one application in each. Capacity is auctioned by grid connection point rather than by project.

Standalone storage

The standalone storage tender offers up to 750 MVA of capacity across different connection points on Portugal’s Public Electricity Service Network (RESP).

Projects must have installed storage power equivalent to at least 100% of their awarded injection and charging capacity. They must also provide at least four hours of storage at maximum injection power.

The procedure comprises qualification, bidding and capacity allocation stages. It uses an ascending-clock auction mechanism, with bidding for capacity followed by the selection of preferred connection locations and, where applicable, a separate auction for specific locations.

The awarded capacity is reserved exclusively for standalone storage installations.

Co-located storage

The second procedure will allocate up to 300 MVA of grid connection capacity to renewable generation facilities paired with co-located storage.

Storage installations must have a minimum power rating equivalent to 20% of the awarded injection capacity and sufficient energy capacity to provide at least four hours of storage at maximum injection power.

The tender also includes specific consideration for agrivoltaic projects that combine renewable electricity generation and agricultural activity on the same land.

As in the standalone storage procedure, capacity is distributed across different grid connection locations and awarded through electronic auctions.

The framework provides for financial participation by municipalities hosting the projects. Local authorities will receive 30% of the revenue from the standalone storage auction and 70% of the revenue from the renewable generation and co-located storage auction. They will also receive annual compensation payments from project owners.

The tenders form part of Portugal’s broader energy storage strategy, which sets a target of 3 GW of battery storage by 2030.

Portugal has also approved new technical requirements for connecting large battery energy storage systems to the grid, including provisions for frequency and voltage response and grid-forming operation.

From pv magazine España