Portugal's battery storage deployment is set to accelerate as the country works toward a 3-GW target by 2030 under its National Energy Storage Strategy, though progress will hinge on licensing, grid access and revenue stability, according to the Portuguese Association of Renewable Energy (APREN).

Portugal had deployed just 20 MW of battery storage by the end of 2025. The government's updated strategy raises the 2030 target to 3 GW from 2 GW under the National Energy and Climate Plan, with a further increase to 4.5 GW by 2040.

Pumped hydro remains the dominant large-scale storage technology in the country, with 2.8 GW installed by end-2025 and accounting for about 8.3% of mainland electricity generation last year. The government targets expanding pumped hydro to 3.9 GW by 2030 and 5.26 GW by 2040.

APREN Policy Coordinator Susana Serodio said two projects planned for September would support the rollout, with one allocating up to 750 MW of grid capacity to standalone storage and another up to 300 MW to renewables with co-located storage, representing 1.05 GW of new grid-connected capacity. A tender to expand pumped hydro is also being considered, subject to discussions with the European Commission on state aid rules.

Serodio cautioned that the two announced projects are fully exposed to market revenues and do not currently include a capacity mechanism remunerating availability, which could create challenges for project bankability. In January 2025, Portugal awarded 43 storage projects totaling about 500 MW with 100 million euros in funding.

In January, Chinese battery maker CALB has unveiled plans for a 15 GWh lithium-ion battery factory in Portugal. The project has been designated by the government as a project of national interest and has obtained special grid access rights.