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, Energy Storage Summit 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

Premium
January 15, 2026
We hear from IPP Zelestra about its decision not to proceed in Italy’s MACSE auction and the auction’s wider implications on demand for private tolls.
January 15, 2026
While coal and gas power plants grapple with cost increases, Australia’s battery storage sector delivers a different story, with costs plummeting across all durations.
January 14, 2026
IPP Neoen will provide Réseau de Transport d’Electricité (RTE) with grid-forming function from a BESS project in Brittany, France.
January 13, 2026
Another busy week of large-scale BESS project news across Europe, led by CountourGlobal putting a 202MW/505MWh BESS into commercial operation in Bulgaria.
January 13, 2026
The managing director of Bluestar Energy Capital’s European BESS platform Noveria Energy gave a Q&A to Energy-Storage.news ahead of the Energy Storage Summit 2026 in London next month.