Portugal delays 1,050 MVA battery storage auction

Portugal has postponed two competitive tenders for a combined 1,050 MVA of grid injection capacity for battery energy storage, including 750 MVA for standalone systems and 300 MVA for renewable projects with co-located storage.

The procedures were initially scheduled to launch on Sept. 14 but have been delayed by several weeks while the government incorporates feedback from a public consultation on the tender conditions.

The standalone storage tender will allocate up to 750 MVA across multiple points on Portugal’s national transmission grid. The capacity will be awarded through an electronic auction managed by Portugal’s Directorate-General for Energy and Geology (DGEG), enabling new storage facilities to connect directly to the country’s electricity grid.

Participants will have to bid for at least 50 MVA and can secure up to 200 MVA. Storage systems must have power capacity equivalent to at least 100% of the awarded injection capacity and a minimum duration of four hours.

If the full 750 MVA allocation is supplied by four-hour systems, it would correspond to at least 3,000 MWh of storage capacity.

The auction will use an ascending-clock format, with successive rounds and bids in euros per MVA. Successful bidders will receive capacity at the closing price of the relevant auction cycle. OMIP will operate the bidding platform.

The tender also includes operating restrictions linked to grid congestion. Standalone storage projects could face injection restrictions of up to 750 equivalent hours per year. Developers will be responsible for connection costs, with the planned connection points located on the 400 kV national transmission grid.

The second tender will allocate 300 MVA to renewable power plants with co-located storage. Participants will be able to request between 50 MVA and 100 MVA, while the battery must account for at least 20% of the awarded injection capacity and have a minimum duration of four hours.

For standalone storage, the identified grid locations are Rio Maior, Alcochete-Palmela, Pegões-Divor, Abrantes-Estremoz-Falagueira, Alqueva, Ferreira do Alentejo, Panóias, Tavira and Vale Pereiro. The co-located storage tender covers Rio Maior, Abrantes and Sines-Santo André.

The proposed framework also includes financial compensation for municipalities hosting the projects. Under the standalone storage tender, 70% of auction revenues would go to Portugal’s National Electricity System and 30% to municipalities. For renewable projects with co-located storage, the proposed allocation is 30% and 70%, respectively.

The tenders form part of Portugal’s strategy to increase energy storage capacity and facilitate the integration of renewable generation. The country’s National Energy Storage Strategy, currently under public consultation, targets 6.9 GW of installed storage by 2030 and 9.76 GW by 2040. It covers both battery storage and longer-duration pumped-hydro storage.

Portugal is also reviewing its regulatory framework for energy storage. Decree-Law 130/2026 introduced changes to the National Electricity System, including a specific prior-control procedure for standalone storage and verification of the maximum charging capacity that can be drawn from the grid.

Storage facilities above 1 MW require production and operating licenses under the new framework.

The government has linked storage development to renewable integration and security of supply. In June, it also announced plans to develop a capacity mechanism open to generation, storage and demand-side management, following an adequacy assessment by DGEG.

The next step will be publication of the final tender conditions and formal opening of the procedures. The combined 1,050 MVA allocation would create a competitive mechanism for storage projects seeking access to available capacity on Portugal’s transmission grid.

From pv magazine España

The post Portugal delays 1,050 MVA battery storage auction appeared first on Energy Storage.

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