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29 July 2025

Daily Newsletter

29 July 2025

Portugal to invest $466m to enhance grid management, post blackout

This investment is aimed at handling the complexities associated with intermittent renewable energy sources such as wind and solar power.

samatharenigunta July 29 2025

Portugal has announced plans to invest up to €400m ($466m) to strengthen its electricity grid and increase battery storage capacity, according to a report by Reuters.

This move follows a major blackout that affected both Spain and Portugal on 28 April.

Energy Minister Maria da Graca Carvalho said that approximately €137m from this investment will be directed towards improving the operational and control capabilities of the electricity network.

The investment is aimed at handling the complexities associated with intermittent renewable energy sources such as wind and solar power.

Last month, a Spanish Government report revealed that Redeia, the country's grid operator, had incorrectly calculated the energy mix required on 28 April.

It also highlighted failures by some thermal power plants using coal, gas and nuclear energy in maintaining adequate voltage levels.

These issues contributed to a surge in voltage, which led to widespread disconnections of power plants and ultimately resulted in blackouts across Spain and Portugal.

To prevent future overloads and ensure stable voltage regulation, Portuguese grid operator REN plans to add shunt devices for accurate electrical current measurement.

Carvalho said that, unlike traditional thermal power plants known for their steady supply that helps grid management, renewable sources present challenges due to their intermittent and decentralised output.

During a press conference, Carvalho said: "We need to enhance the security, digital capabilities and modernisation of our grid to accommodate this new and more complex energy production model.”

She added that the government will draft a decree to expedite the implementation of these investments.

Additionally, she highlighted that the proposed increase in energy storage is intended to avert potential shutdowns across the country, thereby ensuring greater energy autonomy for essential services including hospitals, fire departments and security forces.

Portugal currently has only 13MW of battery storage capacity. The country is aiming to expand this capacity to 750MW, although no specific timeline has been provided yet.

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