Portugal is preparing two competitive procedures to allocate a combined 1,050 megavolt-amperes (MVA) of grid injection capacity to energy storage projects, comprising 750 MVA for standalone batteries and 300 MVA for renewable energy projects with co-located storage.

The government has postponed the launch, initially scheduled for Sept. 14, by several weeks following a public consultation on the tender terms.

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

Under the terms submitted for public consultation, participants must bid for at least 50 MVA and may secure up to 200 MVA. Storage systems must have a power rating equal to 100% of the awarded injection capacity and a minimum duration of four hours.

If all 750 MVA is allocated to four-hour systems, the tender would result in at least 3 GWh of battery storage capacity.

The auction will use an electronic ascending-clock format, with successive bidding rounds and offers denominated in euros per MVA. A uniform pricing mechanism will apply, with successful bidders in each round securing capacity at the relevant clearing price. Portuguese energy market operator OMIP will manage the bidding platform.

The tender design also includes grid-related operating restrictions. Standalone projects may face congestion-related injection constraints of up to 750 equivalent hours per year. Project developers will bear connection costs. The designated connection points are on Portugal’s 400 kV transmission network.

A separate procedure will allocate 300 MVA to renewable generation projects with co-located storage. Participants will be able to request between 50 MVA and 100 MVA. The storage component must have a power rating of at least 20% of the awarded injection capacity and a minimum duration of four hours.

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

The proposed framework also provides financial compensation for municipalities hosting the projects. Under the standalone storage procedure submitted for consultation, 70% of tender revenue would go to the National Electricity System and 30% to municipalities. For renewable projects with storage, the proposed shares are 30% and 70%, respectively.

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

Portugal is also revising its regulatory framework for energy storage. Decree-Law 130/2026 amended the rules governing the National Electricity System and introduced, among other provisions, a specific prior-control procedure for standalone storage and verification of maximum grid-charging capacity. Storage facilities with capacities exceeding 1 MW require generation and operating licenses.

The government has linked storage deployment to renewable energy integration and security of supply. In June, it also announced preparations for a capacity mechanism open to generation, storage and demand-side management, following a resource adequacy assessment by the Directorate-General for Energy and Geology (DGEG).

Following the postponement, the next steps are the publication of the final tender terms and the formal opening of the procedures. The combined 1,050 MVA allocation will establish one of Portugal’s first competitive mechanisms specifically designed to provide storage projects with access to grid connection points with available capacity.