The Government opened the Surplus Capacity Auctions and Autonomous Storage Auctions, with the offering of 300 MVA and 750 MVA, respectively. These are the first competitive procedures for awarding grid-connection capacity launched since 2021 and mobilize investment in new renewable production associated with storage and in autonomous battery installations, strengthening the national electricity system’s ability to respond, according to a statement from the Office of the Minister for the Environment and Energy.
According to the same source, storage allows electricity produced during hours of greater renewable availability and lower prices to be stored, to be made available when consumption increases. By strengthening supply in those periods, the batteries contribute to reducing prices at peak times, as well as the need to rely on natural gas-fired plants. This makes possible a more flexible, more efficient, and cleaner electrical system, with benefits for households and for the competitiveness of businesses.
Among the novelties, notable is the emphasis these auctions give to territories and their communities, reserving to them a share of the revenues. For municipalities, 30% of the revenues from the autonomous storage auction and 70% of the revenues from the surplus capacity auction are reserved, in addition to the annual compensations paid by the project holders. The clear reinforcement of the benefits for the communities hosting these projects recognises not only their contribution to their success but also rewards their support and involvement, bringing the development of the electric grid closer to community interests and valuing their role in advancing the energy transition.
Another novelty is the special attention given to solutions that compatibilize solar electricity production with agricultural activity, allowing the productive function of the soil to be preserved, diversifying income sources, and broadening the economic and social benefits of the projects for farmers and for the local communities.
For the Minister of Environment and Energy, Maria da Graça Carvalho, “these auctions give a new boost to storage in Portugal and to an energy transition that combines cheaper electricity with the enhancement of communities and land use.”
The auctions also contribute significantly to the national 2030 objectives, in alignment with the proposal of the National Energy Storage Strategy, recently submitted for public consultation, which points to 3 GW of battery storage by 2030. This capacity will allow for greater integration of renewable production and reduce dependence on imported fossil fuels.
A regulation has also been published establishing the technical connection requirements of storage facilities to the grid, including frequency and voltage stabilization capabilities, strengthening the safety and resilience of the national electricity system.
