Energy storage in Portugal
Energy storage in Portugal
Current regulatory developments
Updated September 2026
Approximately €100 million PRR battery funding awarded to 43 energy storage projects (500 MW target)
Additional €60.25 million PRR funding to enhance grid flexibility and security through the deployment of battery energy storage systems
Clear focus on BESS as key factor for grid security
PNEC 2030 target: 2 GW battery storage capacity by 2030
New regulation regarding general conditions and technical requirements for the connection and access to the Public Electricity Network (RESP) by electricity storage facilities recently submitted to public consultation, indicating that the Directorate – General for Energy and Geology (DGEG) will approve such rules and requirements in the short term
Five things to know about BESS in Portugal
No specific regulatory classification, but detailed tiered permitting regime. There is no dedicated regulatory classification for batteries. However, permitting requirements are differentiated by capacity: e.g. an operational permit is required for batteries >1 MW; prior registration and operational certificate for ≤1 MW; only prior notice is needed for R&D batteries above 700 W or any batteries ≤30 kW–700 W; and no permit for R&D projects of ≤700 W for off-grid systems.
BESS faces headwinds and tailwinds. The increase of renewables in the Portuguese energy supply (particularly strong investment in solar PV) is expected to generate balancing opportunities for storage projects. Portuguese offshore territories (Madeira and Azores) are especially attractive for grid-scale battery assets due to their isolated grid characteristics. Portugal recorded two BESS financing deals in Q1 2026, indicating growing market activity. However, limited grid capacity, revenue support, and limited access to storage equipment and raw materials to manufacture key equipment remain barriers.
PRR awards ~€100 million to support battery colocation. Under the updated Recovery and Resilience Plan, Portugal awarded just under €100 million to support funding the installation of batteries collocated with renewable generation, with the goal of achieving 500 MW storage capacity to support grid flexibility. The updated PNEC 2030 sets a broader 2 GW storage capacity target which will require significant additional investment beyond the PRR-funded projects.
Competitive auction awaited for 750 MW of 4-hr stand-alone BESS. The auction will allocate 750 MW of standalone storage capacity, in addition to a separate auction for 300 MW aimed at BESS collocated with renewables. The auctions were scheduled for 14 September but have been postponed pending review of public consultation feedback.
Capacity market mechanism with EC for approval. The Portuguese Government has submitted a request to the European Commission for approval of a competitively allocated capacity mechanism, in which BESS would compete with other capacity providers (such as generator and demand-side response) for contracts. These contracts would pay for availability of capacity when required by the system, with competitive tension controlling the cost to consumers.
Credentials
a solar park in negotiating the terms of an agreement for the operation and management of the BESS system, including the commercial conditions for the BESS management and optimization services
a banking syndicate composed of national and international finance institutions on Sonnedix’s first hybrid solar and battery energy storage projects in Portugal, the first project financing of its kind in Portugal
a solar park in assessing the regulatory framework (permitting and environmental conditions) applicable to BESS hybridization
“Eversheds Sutherland advises on energy and natural resources matters, with particular strength in regulatory and transactional work. Practice head João Rocha de Almeida is experienced in public law disputes, public procurement and construction contracts.” Legal 500 Portugal
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