Portugal will take a further step in consolidating its energy transition with the launch of a competitive auction for 750 MW of battery storage capacity, an initiative that seeks to strengthen the security of the electricity system and facilitate greater integration of renewable energy.
The announcement was made by the Minister of Environment and Energy, Maria da Graça Carvalho, during the conference “Energia que Move o País”, held within the framework of Energy Week 2026 and organized by ECO.
According to the official, the Portuguese government will officially present all the details of the bidding scheme on June 29, including the timeline, planned locations, and network connection points.
The date will also mark the start of the public consultation on the new National Energy Storage Strategy, a document that will recognize both electrochemical batteries and pumped hydro storage as fundamental pillars of the future Portuguese energy system.
Currently, Portugal has more than 3.6 GW of reversible hydroelectric capacity, an infrastructure that the Executive intends to expand to strengthen long-term storage and system flexibility.
During his speech, Carvalho stressed that energy storage has become a structural requirement for the decarbonization of the electricity sector.
"Storage is not just a technological solution; it is a necessary condition for a decarbonized and efficient electricity system," he stated.
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The minister also highlighted that, through the Recovery and Resilience Plan (RRP), the Government has already supported more than 43 battery storage projects, equivalent to about 500 MW of installed capacity.
He also noted that Portuguese consumers experienced lower electricity prices than the European average during 2025, according to data from the energy regulator ERSE.
Meanwhile, Portugal reached a new milestone in the first quarter of 2026, when more than 80% of electricity generation came from renewable sources, positioning the country among the European leaders in clean energy penetration.
Objective: to reduce dependence on fossil fuels by 50%.
Although the country continues to advance under the guidelines of the National Energy and Climate Plan (PNEC 2030), the Government raised its ambitions and set a goal of reducing dependence on fossil fuels by 50% by 2034.
To achieve this goal, the Portuguese energy strategy will be based on four main pillars:
- Expansion and modernization of electrical networks.
- Massive development of energy storage.
- Increase in renewable energy generation.
- Boost for renewable gases such as biomethane, SAF (sustainable aviation fuel) and e-fuels.
The upcoming 750 MW auction represents one of the most significant initiatives for the energy storage market in the Iberian Peninsula during 2026. The mechanism seeks to accelerate investments in flexibility, strengthen grid stability, and prepare the electricity system for greater participation of variable renewable sources.
With June 29th marked as a key date for national energy policy, Portugal reinforces its position as one of the most advanced markets in Europe in terms of renewable integration and the development of storage technologies.