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Portugal to invest $466 million to boost grid management, battery storage after outage

Published by Global Banking & Finance Review

Posted on July 28, 2025

2 min read

· Last updated: January 22, 2026

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Portugal to invest $466 million to boost grid management, battery storage after outage
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By Sergio Goncalves LISBON (Reuters) -The Portuguese government plans to invest up to 400 million euros ($466 million) to improve grid management and boost battery storage following a massive blackout

Portugal Allocates $466 Million for Enhanced Grid Management and Storage

By Sergio Goncalves

LISBON (Reuters) -The Portuguese government plans to invest up to 400 million euros ($466 million) to improve grid management and boost battery storage following a massive blackout across Spain and Portugal in April.

Energy Minister Maria da Graca Carvalho said on Monday about 137 million euros of the investment would go towards improving the operational and control capacity of the electricity grid to help it deal with complex intermittent renewable power sources such as wind and solar.

The Spanish government said in a report last month that grid operator Redeia had miscalculated the correct mix of energy in the system on April 28, but also blamed some thermal power plants using coal, gas and nuclear, for failing to help maintain an appropriate voltage level.

A surge in voltage triggered a cascade of power plant disconnections, leading to the outage that spread to Portugal, which was importing electricity at the time.

Portuguese grid operator REN will install a so-called shunt device to accurately measure electrical current and prevent overloads as well as equipment to regulate voltage, improve power system stability and ensure consistent energy delivery, according to the plan.

Carvalho said that unlike in the past, when thermal power plants helped grid management with their stable supply, more renewable sources mean more intermittent and decentralised output which is harder to manage.

"We have to make our grid more secure, digital and modern ... to support this new, more complex energy production model," she told a press conference, adding that the government would prepare a decree to speed up implementation of the investments.

She also said the planned storage increase aimed to prevent a shutdown of the country, providing greater energy autonomy to critical infrastructure such as hospitals, fire departments, security forces, and other key public administration services.

Portugal has only about 13 megawatts of battery storage capacity, and the goal is to reach 750 megawatts, although no timetable has been set yet. According to the latest daily data from REN, electricity consumption in Portugal stood at 115 GWh on June 20.

($1 = 0.8581 euros)

(Reporting by Sergio Goncalves; Editing by Andrei Khalip and Emelia Sithole-Matarise)

Key Takeaways

  • Portugal to invest $466 million in grid and battery storage.
  • Investment aims to prevent future blackouts and improve stability.
  • 137 million euros allocated for grid operational improvements.
  • Goal to increase battery storage capacity to 750 megawatts.
  • Focus on supporting critical infrastructure with energy autonomy.

Frequently Asked Questions

What is the total investment amount planned by Portugal?
The Portuguese government plans to invest up to 400 million euros, which is approximately $466 million.
What will the investment focus on?
The investment will focus on improving grid management and boosting battery storage capacity following a recent massive blackout.
How much battery storage capacity does Portugal currently have?
Portugal currently has about 13 megawatts of battery storage capacity, with a goal to reach 750 megawatts.
What caused the recent blackout in Portugal?
The blackout was triggered by a surge in voltage that led to a cascade of power plant disconnections while Portugal was importing electricity.
What equipment will be installed to improve grid stability?
Portuguese grid operator REN will install a shunt device to measure electrical current and prevent overloads, along with equipment to regulate voltage.

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