Portugal has formalised two competitive procedures for a maximum of 1,050 MVA of grid injection capacity for storage, approving provisions 12924-B/2026 and 12924-C/2026 in the Diário da República. The procedures, managed by DGEG, will use electronic auctions and allocate 750 MVA to standalone storage and 300 MVA to co-located renewable generation plus batteries.
The design matters because grid access is becoming one of the scarcest resources for European BESS developers. Portugal is not simply auctioning support revenue; it is allocating the right to inject power into the network, which determines where projects can be built and how they can be operated.
Charging limits and node risk
The allocation does not guarantee equivalent power to charge from the grid. Technical terms contemplate up to 500 hours per year of combined charging and discharging restrictions for standalone batteries, and up to 750 hours per year of grid charging restrictions for hybrid projects. Load capacity will depend on node conditions, with relevant restrictions in locations such as Sines.
For developers, those conditions turn the auction into a test of both commercial design and network modelling. A project may win injection rights but still face material curtailment or charging constraints depending on where it connects. That makes node selection, hybridisation and revenue-stacking assumptions central to bid strategy.
Why it matters for EU storage
Portugal is joining a broader push by member states to use competitive mechanisms to bring flexibility online. The auction format may also set a precedent for how grid operators and regulators allocate scarce connection capacity as storage volumes grow. The key question is whether the restrictions are tight enough to protect the network without undermining project bankability.
The procedures are expected to draw interest from international developers and infrastructure funds active in Iberian renewables. Success will depend on whether the auction terms provide enough visibility on operating limits for lenders to underwrite standalone and hybrid storage assets.
Source: Energía Estratégica.
This article was assisted by AI analysis. Please refer to the original source for official information.