Portugal will hold an auction on Sept. 14 for 1.05 GW of energy storage capacity, including 750 MW of standalone battery storage and 300 MW paired with renewable energy projects, under a new national strategy targeting 3 GW of battery storage by 2030.

From ESS News

The Portuguese government said the auction forms the first step of its National Electricity Storage Strategy, which also targets 3.9 GW of pumped hydro storage by 2030. The targets rise to 4.5 GW of battery storage and 5.26 GW of pumped hydro by 2040.

The 750 MW auction will cover standalone battery energy storage projects, while a further 300 MW will be allocated to surplus grid capacity linked to renewable energy projects that include storage. The government said projects will be located at strategic grid nodes including Rio Maior, Abrantes, Sines-Santo André, Alcochete-Palmela, Pegões-Divor, Estremoz, and Tavira. It also plans future tenders for pumped hydro projects, subject to European Commission state aid approval.

The strategy introduces a revenue-sharing mechanism for municipalities hosting storage projects. Local authorities will receive 30% of revenue generated by the National Energy System through standalone storage auctions and up to 70% from projects using surplus grid capacity. Developers will also be required to allocate 2.5% of net revenue to local community benefit measures, while agrivoltaic projects will receive a 20% bonus during the auction process.