Why is storage important in Portugal?

Storage provides real-time flexibility, enabling participation in balancing markets and maintaining grid stability and inertia, especially in Portugal where these markets are growing. Despite the increase in interconnection capacity between Spain and Portugal, it could experience congestions during non-solar hours.

Can storage replace thermal generation in Portugal?

The pursuit of economic viability by storage facility owners will inherently lead to charging during low-cost hours and discharging during hours that are more economically attractive. Storage can replace thermal generation in constraint markets, easing the grid and supporting Portugal's 2040 phase-out target.

Can solar power meet Portuguese demand?

Their simulations show that combining solar, wind and at least four hours of battery storage can meet Portuguese demand in 94 % of hours across an average year; add pumped hydro and that rises above 99 %. The remaining gap could be filled by green hydrogen or demand-response contracts that pay factories to pause production when clouds linger.

How much electricity does Portugal generate in 2025?

In the period from January to August 2025, Portugal generated 33,107 GWh of electricity, with renewables accounting for 76.9% of total generation—the fourth-highest share in Europe, following Norway, Denmark, and Austria.