Below, we provide an overview of the legislative framework and some of the issues that should be considered by operators interested in investing in the energy storage sector in Portugal.
These changes follow the blackout in the Iberian Peninsula on April 28, 2025, highlighting the need for energy storage to help keep the power grid stable and secure by encouraging the use of storage systems.
The funding is part of the EU-wide Recovery and Resilience Facility (RRF), a pot of money aimed at helping EU economies transform structurally after the Covid-19 pandemic, and which several have used to fund energy storage.
Portugal plans to hold an energy storage auction before January 2026 as part of a €400 million ($462.2 million) initiative to enhance grid resilience following an April blackout.
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In this report, the IEA provides a range of energy policy recommendations to help Portugal smoothly manage the transition to an efficient and flexible carbon-neutral energy system.
This article briefly analyses the Portuguese regulatory framework for utility-scale energy storage technologies, in order to highlight the strategies that have been followed. A critical analysis is conducted, underlining the importance of energy storage for
The minister indicated that the government intends to see the capacity for storing electricity increased, and for this reason is working on a "national storage plan", which, she said, could include both chemical storage, through batteries, and hydroelectric storage, through the capacity of dams.
Announced energy policy projects focus on reducing fossil fuel dependence and increasing renewable energy adoption across sectors such as transport and industry. However, integrating renewables into the grid and ensuring adequate energy storage to manage their variability remain critical challenges.
The energy transition that is foreseen for the next decade will require more than 25,000 million euros of investment, which involves a complex concertation of wills and an alignment of policies, incentives, and means of financing.
In spite of foreseeing some innovative projects for energy storage in Portugal, there is not yet a general framework in this field.
Portugal’s energy and climate policies seek to achieve carbon neutrality primarily through broad electrification of energy demand and a rapid expansion of renewable electricity generation, along with increased energy efficiency. There is a strong focus on reducing energy import dependency and maintaining affordable access to energy.
Renewable energies are inevitably vulnerable to variations in availability, since the sun and the wind cannot be programmed. Energy storage is therefore essential if EU targets are to be met. Portugal’s installed energy storage capacity is still predominantly based on hydro pumping, which currently stands at 4,164 GW year.
The efforts require the development and implementation of an appropriate legal, policy and funding framework, and for oversight by the Commission for Climate Action. The IEA notes Portugal’s potential in developing commercial opportunities in the energy storage value chain.
Energy storage is therefore essential if EU targets are to be met. Portugal’s installed energy storage capacity is still predominantly based on hydro pumping, which currently stands at 4,164 GW year. However, this paradigm is about to change with the democratisation of energy storage solutions through wind and solar production.
Portugal’s plan was submitted to the EU in April 2021, requesting EUR 13.9 billion in grants and EUR 2.7 billion in loans. Portugal’s plan dedicates notable funding to the energy sector, with funding for sustainable mobility, energy efficiency, renewables, decarbonisation and bio-economy.
