Portugal's Ministry of Environment and Energy announced the launch of two tenders, scheduled for September 14 , which will put a total of 1050 MW of BESS projects up for grabs, while also presenting the National Energy Storage Strategy.
The first call will allocate 750 MW for independent battery energy storage projects, while the remaining 300 MW will be for surplus capacity for renewable projects with colocated storage , taking advantage of existing grid infrastructure.
Furthermore, the Portuguese Executive Branch made it clear that "these are not isolated tenders," but rather the beginning of a permanent scheme for allocating network capacity for storage.
Why? The National Storage Strategy identifies that current scenarios underestimate the battery capacity the system will require in the coming years. Technical studies recommend reaching 3 GW of battery storage by 2030 and increasing that capacity to 4.5 GW by 2040 , along with a progressive expansion of pumped hydropower.
Local authorities will receive 30% of the revenue generated by the National Energy System through independent storage auctions and up to 70% of the projects that use the surplus capacity of the network.
Developers will also be required to allocate 2.5% of net income to measures benefiting the local community, while agro-voltaic projects will receive a 20% bonus during the auction process.
Furthermore, the launch responds to a scenario in which the expansion of solar and wind energy is beginning to demand new tools to integrate production into the electricity system, so that Portugal has more than 15 GW of solar projects under development and estimates investments exceeding 10 billion euros by 2030, a growth that increases the need to incorporate storage to reduce curtailments.
Therefore, batteries cease to be considered a complement to renewable projects and become strategic infrastructure, capable of providing operational flexibility, reducing the use of thermal generation, decreasing emissions and improving the economic efficiency of the electrical system.
Another key aspect of the new scheme will be the economic valuation of these assets towards specific remuneration mechanisms to complement the income obtained by the BESS through price arbitrage and provision of services to the system.
The operator REN also highlighted the economic potential of energy storage within system services markets. According to its estimates, around €1.17 billion of the €1.35 billion generated in these markets during 2025 corresponds to segments where batteries can play a role.
The regulatory package is completed with the new dynamic management regime for connection capacity, which will allow the recovery of reserved but unused network capacity to be reassigned to projects ready to move forward, improving the use of existing infrastructure.
A new regulatory framework to accelerate battery deployment
In addition to the tenders, the Government presented new regulatory guidelines that will accompany the development of storage.
These include specific licensing procedures, technical requirements for battery connection, and the incorporation of advanced capabilities such as grid-forming operation, frequency control, voltage regulation, and synthetic inertia, with the aim of these systems playing an increasingly important role in grid stability.
The scheme also incorporates incentives for agrovoltaic projects within the tender for surplus capacity and a new mechanism for distributing benefits to the municipalities that host the facilities, through an annual share in the income generated by the projects throughout their useful life.
The terms of both procedures will now be open for public consultation, while the formal start of the bidding process is scheduled for September.