Portugal has launched a new call for applications under the Recovery and Resilience Plan (PRR) to support investments in battery energy storage projects (BESS) co-located with renewable energy power plants.
The new support scheme has a total budget of €60.25 million and may cover up to 20% of eligible project costs.
Applications must be submitted by 8 April 2026.
1. Eligible Projects
The call supports the installation of battery energy storage projects associated with renewable power plants. To qualify, storage projects must:
(i) Have a minimum inverter capacity of 1 MVA;
(ii) Be able to charge and discharge at full capacity for at least two hours; and
(iii) Be connected to the same grid connection point as the associated renewable generation facility.
In addition, at least 75% of the electricity used to charge the storage project must originate from the associated renewable plant and charging from the grid is only allowed under the conditions defined by the relevant grid operator.
Storage projects associated with small-scale generation units (UPP) or self-consumption generation units (UPAC) are not eligible. Projects without a direct connection to the public electricity grid are also excluded.
2. Applicants
The call is only open to companies whose corporate purpose includes the generation of electricity from renewable sources.
Storage projects may be linked to renewable power plants that are already in operation or still under development, provided that the relevant plant holds at least one of the following regulatory titles:
(i) A grid capacity reservation title (Título de Reserva de Capacidade – TRC);
(ii) A Production license; or
(iii) An Operation license.
Applicants must also provide evidence that they are in compliance with their tax and social security obligations and have sufficient financial capacity to carry out the investment.
3. Financial Support
Support is granted in the form of a non-repayable grant, subject to the following thresholds:
(i) Up to 20% of the eligible project costs; and
(ii) A maximum of €30 million per company and per investment projects.
Eligible costs include those directly related to the installation of the storage project, such as, purchase and installation of the batteries, construction of the required infrastructures and control and energy management equipment.
4. Evaluation Criteria
Projects will be ranked based on merit criteria.
One of the key factors considered is whether the project is located in grid areas identified as priority locations for energy storage deployment. The call identifies several transmission and distribution substations where storage is considered particularly beneficial for system management. Examples include Alqueva (Vidigueira), Castelo Branco, Sines (Santiago do Cacém), Fundão, Santarém and Tavira in the transmission network, and Alfarelos (Soure), Aljustrel, Coruche, Lousada and Vendas Novas in the distribution network.
Other factors taken into account include:
(i) Project maturity, with higher scores for storage projects associated with renewable plants already in operation; and
(ii) The applicant’s experience in operating energy storage facilities within the European Union.
5. Award and payment
The decision on the projects is expected to be announced within 45 days after the application deadline.
If a project is approved, the beneficiary must sign a Grant Acceptance Agreement with the Environmental Fund (Fundo Ambiental), setting out the conditions of the grant and the implementation schedule. The call provides for three payment methods:
(i) Initial advance: up to 40% of the approved grant, subject to the provision of a bank guarantee be the beneficiary;
(ii) Reimbursement payments: during project implementation, based on invoices and proof of payment submitted by the beneficiary;
(iii) Final payment: after completion of the project.
Projects must begin implementation within six months of signing the Grant Acceptance Agreement and must be completed within 24 months. These deadlines may be extended by the Environmental Fund on duly justified grounds.
Failure to comply with the implementation conditions may result in the reduction, suspension or cancellation of the grant, as well as the repayment of amounts already received.
6. Application
Applications must be submitted until 8 April on the Environmental Fund’s online platform including, among others, the following documents:
(i) Application form;
(ii) Corporate registration certificate and beneficial ownership information;
(iii) Project description;
(iv) Grid connection title (TRC, production licence or operation license);
(v) Technical documentation and cost estimates for the investment;
(vi) Financial statements and tax and social security compliance declarations; and
(vii) Proof of registration in the Balcão dos Fundos and SIGA public funding platforms.