Portugal has launched competitive procedures to allocate up to 1,050 MVA of grid connection capacity to battery energy storage projects, marking its first auctions of this kind since 2021.
The tenders allocate 750 MVA to standalone installations and 300 MVA to renewable generation facilities with co-located storage, supporting the country’s target of 3 GW of battery storage by 2030.
Developers can submit applications until December 22, 2026. The procedures were formally launched through orders published on October 22 in Portugal’s official gazette, the Diário da República, following a postponement of the original September launch date after public consultation.
Both auctions require a minimum application of 50 MVA, with no maximum limit. Developers can participate in both procedures but may submit only one application per auction. Capacity is allocated by grid connection point rather than by individual project.
The standalone storage tender offers up to 750 MVA across connection points on Portugal’s Public Electricity Service Network (RESP). Projects must provide storage power equivalent to at least 100% of their awarded injection and charging capacity, with a minimum duration of four hours at maximum injection power.
The auction involves qualification, bidding and capacity allocation stages. It uses an ascending-clock mechanism, followed by the selection of preferred connection locations and, where necessary, separate bidding for specific locations.
The second procedure allocates up to 300 MVA to renewable generation projects incorporating battery storage. These installations must have storage power equivalent to at least 20% of awarded injection capacity and sufficient energy capacity for four hours of operation at maximum injection power. The tender also includes specific consideration for agrivoltaic projects combining electricity generation with agricultural activity.
Both procedures introduce financial benefits for host municipalities. Local authorities will receive 30% of revenue from the standalone storage auction and 70% from the co-located renewable storage auction, alongside annual compensation payments from project owners.
The auctions coincide with Portugal’s introduction of new technical requirements for connecting large battery storage systems. The provisions cover frequency and voltage response, grid-forming operation and synthetic inertia, reflecting the growing need for inverter-based resources to contribute to system stability as renewable generation expands.
The allocation of 1,050 MVA provides developers with new opportunities to secure grid access, but the distinction between connection capacity and installed battery capacity remains important. MVA measures apparent power, while the actual energy storage capacity depends on the installation’s power rating and duration.
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