Portugal commits $480 M to grid and storage
Portugal will invest $480 M (€400 M) to strengthen grid stability and scale battery storage, aiming for 750 MW of BESS capacity after Iberian blackout.
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Portugal: Portugal has unveiled a $480 M (€400 M) investment package to modernise its electricity grid and significantly expand battery energy storage systems (BESS), following a major Iberian blackout earlier this year.
Energy and Environment Minister Maria da Graça Carvalho detailed the initiative in a recent interview with RTP3, outlining 31 measures designed to improve operational control and system resilience. Some actions are already underway, while others will be accelerated.
A key component includes $156 M (€137 M) allocated to enhance the grid’s ability to manage variable renewable energy sources such as solar and wind. In addition, an auction for large-scale BESS is planned by 2026, marking a step forward in Portugal’s energy transition strategy.
To support critical infrastructure like hospitals, the government will provide $28 M (€25 M) for solar PV and storage installations. While partially financed through EU funds, the national contribution will lead to an estimated 1 % increase in energy bills.
The blackout, initially blamed on renewable instability, was ultimately attributed to the grid operator Red Eléctrica. Investigations revealed inadequate voltage control, abnormal frequency fluctuations, and improper plant disconnections as root causes.
Portugal currently has only 13 MW of operational BESS capacity but aims to scale to 750 MW. A notable step includes Galp’s 5 MW / 20 MWh project launched in April, developed by Powin.
An additional $114 M (€100 M) from the EU’s Recovery and Resilience Plan (RRP) will fund 500 MW of BESS across 43 selected projects.
This initiative underlines Portugal’s commitment to grid reliability, renewable integration, and long-term energy security.
Source: Energy Storage News
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