Portugal to hold energy storage auction before January 2026
1 August 2025
Portugal will launch a competitive tender for 750 MVA of battery energy storage before January 2026, as part of a broader €400 million package aimed at improving grid reliability and preventing future blackouts.
The announcement was made by Portugal’s Minister for Environment and Energy, Maria da Graça Carvalho, who said the country is now better prepared for potential power outages, though “hopefully they won’t happen,” and expects to see clear improvements in the national grid over the next three years.
The new measures come three months after a major blackout on April 28, which originated in Spain. Although the official investigation is ongoing, the minister noted that Portugal’s power systems are generally “secure, resilient and reliable.”
The investment will fund 31 actions across five areas: national grid security and resilience; transmission network planning; accelerated renewable energy deployment; critical infrastructure preparedness; and international cooperation.
One of the key measures will double the number of black start-capable power plants from two to four, adding the Baixo Sabor and Alqueva plants to the existing Tapada do Outeiro and Castelo de Bode facilities starting January.
Additionally, €137 million will be spent on modernising the power grid to improve control and operational capacity. A separate €25 million grant programme will target backup infrastructure for critical facilities such as hospitals, water utilities, and energy providers.
Other planned reforms include a requirement for community participation and approval in renewable energy projects, a “Green Map” identifying pre-approved areas for renewables development, backed by a strategic environmental study to bypass slower permitting processes, and simplified procedures for self-consumption and energy community projects.
On the regional front, Portugal and Spain will jointly prioritise power interconnections with the rest of Europe in discussions with the EU, aiming to strengthen cross-border grid stability.
The minister also downplayed the cost to consumers, estimating the plan will add just €0.01 to every €25 on a power bill or “about 0.04%” and framed it as an “insurance policy” for the national energy network.
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