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

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.

2 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.
22 February 2027
InterContinental London - The O2, London, UK
The Future of Energy Storage Starts Here Three days in London where developers, IPPs, investors, utilities and the manufacturers building the technology come to close deals, not swap business cards. If you need to be in the room with the people deploying capital into European storage, this is that room.

Read Next

Premium
November 5, 2026
We catch up with the CEO of Netherlands-headquartered system integrator Alfen to discuss its sodium-ion BESS partnership with CATL and plans for the technology in Europe.
November 5, 2026
Democrats scored major victories in the US Midterm elections, taking both the House and Senate and flipping several long-held Republican strongholds, with changes likely to occur in the clean energy sector.
November 3, 2026
Battery storage projects have won nearly 40% of the capacity in Belgium’s latest capacity market (CM) auction results, while Germany’s first has all gone to gas, paying nearly eight times more than Belgium in the process.
November 3, 2026
BW ESS has put its 350MW/1,240MWh Hams Hall BESS project in the UK into operation, the largest in Europe.
Premium
October 29, 2026
The intense competition between BESS suppliers in the European market and the ever-more dense products available increases technical risk and the possibility of contractual issues further down the line, a France-based advisor said.