Portugal allocates $466 million for enhancing grid management and battery storage solutions following power outage incident.
In response to the power outage that affected both Portugal and Spain in April, the Portuguese government has announced a €400 million investment package to improve grid management and increase battery storage capacity. The investment, which is part of an effort to make the grid more secure, digital, and modern, aims to prevent future blackouts and better support a more complex energy production model.
Key Elements of Portugal’s Plan
Expanding Battery Energy Storage
The plan includes launching a large battery energy storage system (BESS) auction by 2026, with the aim of increasing battery storage capacity from the current 13 MW to 750 MW. This competitive tender, scheduled before January 2026, will foster the wide deployment of new battery projects.
Upgrading Grid Operational and Control Systems
To address the weaknesses highlighted by the blackout investigation, Portugal will invest €137 million in upgrading its grid control systems. These upgrades will focus on improving voltage control, frequency stability, and real-time data management, ensuring a more robust and efficient grid.
Enhancing Critical Infrastructure Resilience
To increase the resilience of critical infrastructure, such as hospitals and other essential facilities, Portugal will fund solar PV and battery storage installations at these sites with €25 million. This investment will provide greater energy autonomy to these critical services.
Developing a National Storage Plan
Portugal is also developing a national storage plan that may include both chemical (batteries) and hydroelectric (dams) storage technologies. This plan will provide a comprehensive strategy for managing intermittent renewable energy sources.
Creating a Single Data Collection System
To improve monitoring and response, Portugal plans to create a single data collection system with greater computerization and utilization of grid data. This system will help in better managing the increased use of renewable energy sources, which is harder than managing traditional thermal power plants.
The Way Forward
These measures collectively aim to modernize Portugal’s electricity grid, making it more resilient and better able to integrate intermittent renewable energy sources like solar and wind. The plan is partly co-financed by EU funds, with a slight expected increase (around 1%) in consumer energy bills to cover costs.
The Portuguese government's investment is a response to the challenges posed by the increased use of renewable energy sources, which are more intermittent and decentralised. The investments will go towards improving the operational and control capacity of the electricity grid to handle complex intermittent renewable power sources, ensuring consistent energy delivery and preventing overloads.
References
[1] Portuguese government press release [2] REN press release [3] Euractiv article [4] Spain's report on the blackout
- To further support the integration of renewable energy sources, Portugal's investment plan includes the developing of a national storage plan that encompasses both energy storage technologies, such as batteries and hydroelectric dams.
- As part of the strategy to modernize the electricity grid, Portugal will establish a single data collection system with advanced computerization and the utilization of grid data, with the aim of better managing the increased use of intermittent renewable energy sources in comparison to traditional thermal power plants.
