Lisbon, June 29, 2026 (Lusa) - The Portuguese government on Monday presented a strategy for energy storage using batteries and pumped-storage hydroelectricity, through which it aims to bridge periods of shortfall, achieve greater energy sovereignty and help stabilise prices.
The National Storage Strategy, drawn up on the basis of studies by INESC-TEC and the Instituto Superior Técnico, will now be put out for public consultation; the section relating to hydro storage requires authorisation from Brussels, said the minister for the environment and energy, Maria da Graça Carvalho.
The document, presented at the ministry in Lisbon, sets out different scenarios for the periods 2026–2030 and 2026–2040, with a view to Portugal reducing its need to import energy and including a greater share of renewable energy in its mix.
“It will be put out for public consultation and we will choose the scenario,” said the minister, indicating that there will always be “a mix of battery storage and hydro storage”.
Whilst battery storage does not require negotiations with Brussels – except regarding the capacity mechanism, for which negotiations have already begun – the next step for hydro storage is to negotiate with the European Commission: “It is a matter of state aid, but it will certainly be a negotiation that is brought to a successful conclusion quickly,” added Maria da Graça Carvalho.
“As soon as we have authorisation from Brussels, we will launch a tender for hydro storage, which we hope will still be possible by the end of the year,” she said.
“Storage is important because it allows us to make the most of the renewable energy available. When there is plenty of sunshine and low demand, we effectively lose that energy; storage will enable us to store it and use it when there is less sunshine and less wind, and demand is high,” explained the minister, speaking to journalists at the end of the presentation of the technical reports.
(During the night or periods of strong wind or sunshine, surplus electricity is used to pump water from a lower reservoir to a higher one. When demand for electricity is high (peak hours), the water is released into the lower reservoir, passing through turbines and generating clean energy).
According to the minister, the measure is important for security of supply, for pricing, for the competitiveness of the system and for decarbonisation.
The local authorities that are awarded the projects to be put out to tender in this first phase of battery installation will retain a share of the annual revenue, with a percentage of 2.5% envisaged.
“If we do not have more storage and greater grid capacity, we are reaching a limit; we are already at around eighty-something percent, and therefore, to move forward safely, we need hydro storage, batteries and grid reinforcement,” she maintained.
Regarding the grids, Maria da Graça Carvalho also announced that this week (on 2 July) the very-high-voltage interconnector between Portugal and Spain, in Alto Minho, will be inaugurated. This project, representing an investment of €44 million, began in July 2024.
AH/AYLS // AYLS
Lusa
