Portugal to invest €400 million into grid and BESS after Iberian blackout

July 29, 2025
LinkedIn
Twitter
Reddit
Facebook
Email

The government of Portugal has announced plans to invest €400 million (US$466 million) to improve its grid management capabilities and increase its battery energy storage system (BESS) capacity.

Energy and environment minister Maria da Graca Carvalho announced the plans with local press this week, including an interview with news network RTP3 earlier this week (28 July), in light of the Iberian blackout earlier this year.

The action totals 31 measures, some of which have already been implemented and some of which will have their implementation sped up. It will be part-funded by EU funds, but the costs borne by the Portuguese state will increase energy bills by around 1%, the minister added.

One of those is €137 million to go towards improving the operational and control capacity of the electricity grid to help it deal with complex intermittent renewable power sources such as wind and solar, she said.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The plan also includes the launch of an auction for large-scale BESS capacity by 2026, as well as €25 million in financial support to improve the resilience of critical infrastructure like hospitals, by equipping them with solar PV and BESS, for example.

The blackout was due to three issues, for which the blame can be imparted on the country’s transmission system operator (TSO) Red Eléctrica, not renewable energy, as some have speculated. The grid possessed insufficient voltage control capacity, suffered unusual oscillations in voltage and frequency and experienced the improper disconnection of some power plants, as covered by our colleagues at PV Tech.

Portugal has about 13MW of BESS capacity operational today and the goal is to reach 750MW, local reports said. A 5MW/20MWh project was taken into commercial operation by oil, gas and renewables firm Galp in April, deployed by now-in-administration system integrator Powin.

Some 500MW of capacity across 43 projects will be supported via a €100 million scheme using EU Recovery and Resilience Plan (RRP) funding, a bloc-wide scheme. Winning projects were announced in January.

24 February 2026
InterContinental London - The O2, London, UK
This isn’t just another summit – it’s our biggest and most exhilarating Summit yet! Picture this: immersive workshop spaces where ideas come to life, dedicated industry working groups igniting innovation, live podcasts sparking lively discussions, hard-hitting keynotes that will leave you inspired, and an abundance of networking opportunities that will take your connections to new heights!
9 June 2026
Stuttgart, Germany
Held alongside The Battery Show Europe, ESS Germany — Stuttgart Edition provides a focused platform to understand the policies, revenue models and deployment conditions shaping Germany’s utility-scale storage boom. With contributions from TSOs, banks, developers and optimisers, the Summit explores regulation, merchant strategies, financing, grid tariffs and project delivery in a market forecast to integrate 24GW of storage by 2037.
1 December 2026
Italy
Battery Asset Management Summit Europe is the annual meeting for owners, operators, investors, and optimisation specialists working with operational BESS assets across the continent. The Summit focuses on how to maximise performance and revenue, manage degradation, integrate advanced optimisation software, navigate evolving market and regulatory frameworks, and plan for repowering or end-of-life strategies. With insights from Europe’s most active storage markets, it equips attendees with practical guidance to run resilient, profitable battery portfolios as the sector scales.

Read Next

December 4, 2025
A trio of Germany grid-scale BESS news items, with Next Kraftwerke and ju:niz Energy agreeing a seven year toll, Alpiq announcing a 370MW pipeline, and WBS Power selling the country’s largest solar-plus-storage project and planning a data centre on the same site.
Premium
December 1, 2025
We caught up with developer and IPP Greenvolt Power’s head of storage Antonio Montoto Rojo about the recent MACSE auction in Italy, where it won a contract for a 75MW BESS.
December 1, 2025
European BESS news from project owners Premier Energy Group, Verbund, Eco Stor, Ingrid Capacity, Ric Energy, Ganfeng Lithium, EP Group, RWE and Giga Storage, securing acquisitions, financings and route-to-market (RTM) deals for multiple gigawatts of capacity this past week.
November 27, 2025
A joint venture (JV) between EDF and developer AME has begun construction of large-scale battery and solar photovoltaic (PV) projects in Chile, with 2GWh storage capacity.
November 27, 2025
The utility-scale battery storage market in Italy is drawing huge interest and development activity, writes Solar Media Market Research analyst Josh Cornes.