Portugal Postpones 1.05 GVA Energy Storage Capacity Auction: Two Categories of Projects Await Final Bidding Conditions

en.Wedoany.com Reported - The Portuguese government has postponed two competitive allocation procedures for energy storage capacity originally scheduled to launch in September, involving a total of 1,050 MVA of grid injection capacity, of which 750 MVA is for standalone battery energy storage projects and the remaining 300 MVA is for renewable energy generation projects with co-located energy storage. The procedures, originally planned to start on September 14, will be delayed by several weeks to incorporate feedback received during the preliminary public consultation, with the next milestone being the publication of final bidding conditions and the official opening of the auctions.

The 750 MVA standalone storage component is organized by the Portuguese Directorate-General for Energy and Geology (DGEG), with bidding open to standalone storage facilities connected to the public electricity service network. According to the official public consultation document, capacity will be allocated across multiple national transmission grid connection points and configured through an electronic auction. The minimum declared capacity per participant is 50 MVA, with a cumulative maximum of 200 MVA; the rated power of the energy storage system must be at least 100% of the allocated injection capacity, with a minimum continuous discharge duration of 4 hours. If all 750 MVA is configured with 4-hour duration, the corresponding minimum storage scale would be 3,000 MWh.

This component is planned to adopt an ascending-clock electronic auction, with bids denominated in EUR/MVA, and OMIP responsible for the auction platform. Under the public consultation phase proposal, grid connection costs are borne by developers, with connection points primarily located on the 400 kV transmission network; grid injection for some standalone storage projects may also be subject to an annual congestion limit of up to 750 equivalent hours. Candidate connection areas include Rio Maior, Alcochete-Palmela, Pegões-Divor, Abrantes-Estremoz-Falagueira, Alqueva, Ferreira do Alentejo, Panóias, Tavira, and Vale Pereiro.

The other 300 MVA procedure is aimed at renewable energy generation facilities co-located with energy storage. Each participant is expected to apply for 50–100 MVA of injection capacity, with accompanying battery power reaching at least 20% of the allocated injection capacity, and storage duration likewise no less than 4 hours. The official public consultation confirms that this procedure is intended to allocate public grid injection capacity to renewable energy generation centers, with candidate connection areas including Rio Maior, Abrantes, and Sines-Santo André.

The two auctions also include a local revenue-sharing mechanism. Under the public consultation proposal, revenue from the standalone storage auction is planned to be allocated 70% to the Portuguese national electricity system and 30% to the municipalities where projects are located; for renewable energy and storage co-located projects, the allocation is planned as 30% to the national electricity system and 70% to municipalities. The above proportions remain part of the consultation-phase bidding documents, and final implementation conditions shall be subject to the subsequently officially published version.

The Portuguese Directorate-General for Energy and Geology is simultaneously advancing the National Energy Storage Strategy this year, currently proposing to reach 6.9 GW of installed energy storage capacity by 2030 and increase to 9.76 GW by 2040. The 750 MVA standalone storage auction has previously been listed by the Portuguese government as a competitive capacity allocation measure in its energy storage expansion plan.