Definition of an Energy Storage Strategy for Portugal up to 2040

Energy storage is becoming a strategic asset for the decarbonisation, flexibility and security of the Portuguese electricity system. The National Energy Storage Strategy aims to accelerate its integration through a technologically neutral regulatory framework, simplified licensing and grid connection procedures, appropriate economic signals, and effective participation in electricity and system service markets, with a planning horizon extending to 2030–2040.

The presentation discusses the methodology adopted to support this strategy for future reinforcement of battery storage energy systems and reversible hydro plants, combining scenario analysis based on Portuguese NECP and Security of Supply Monitoring projections, assessing impacts on security of supply, energy and secondary reserve markets, and analysis of technological, regulatory and financial barriers. Particular attention is given to the role of storage in electricity market prices, where it can reduce renewable curtailment, displace thermal generation and exploit price arbitrage, while also affecting the operational revenues of renewable generation and storage technologies themselves.

Storage is also shown to be critical for security of supply, although its contribution must be complemented by demand flexibility, adequate thermal backup and, in the longer term, seasonal storage solutions. The proposed action plan defines storage deployment targets with capacity mechanisms, full participation in new ancillary services such as Fast Frequency Response, inertia and voltage/reactive power support, and requirements enabling Grid Forming operation. Overall, the strategy positions storage as a central enabler of a more renewable, resilient and economically efficient Portuguese power system.