Portugal Finances 500 MW of Energy Storage

The Portuguese Ministry of Energy has allocated €100 million for grid flexibility and energy storage projects to be completed by the end of 2025. This initiative aims to enhance the flexibility and stability of Portugal's power supply system amid its record-breaking solar electricity production.

On July 31, the ministry announced the allocation of €99.75 million through a call for tenders to install energy storage projects totaling 500 MW. These projects, funded by the Environmental Fund as part of the country's Recovery and Resilience Plan (PRR), can receive up to €30 million and must be implemented at the transport and distribution level by the end of 2025. Applications must be submitted via the Environmental Fund portal by September 2.

Maria da Graça Carvalho, Minister of Environment and Energy, emphasized the importance of this program for companies and institutions aiming to contribute to Portugal's sustainable and independent energy future. She highlighted the role of energy storage in modernizing the electricity infrastructure, ensuring efficient resource management, and responding to fluctuations in supply and demand, benefiting both the economy and the environment.

“With the increasing integration of renewable energy sources, such as solar and wind, it is essential to find solutions that guarantee the flexibility and stability of the electricity grid,” Carvalho explained.

Portugal has significantly increased its renewable energy capacity, with renewable sources covering 95% of the country's electricity needs in April, according to grid operator REN. This figure was 91% in March, 88% in February, and 81% in January. The share of renewables in Portugal's energy mix has grown from 27% in 2005 to 54% in 2017, with the last coal-fired power plant closing in 2021.

As part of its new energy strategy, Portugal aims to produce 80% renewable electricity by 2026 and 85% by 2030. The strategy includes a target of 20.4 GW of operational PV systems by 2030, comprising 14.9 GW of large-capacity plants and 5.5 GW of decentralized generation. Additionally, Portugal has launched its first tender for biomethane and green hydrogen as part of this comprehensive energy strategy.