The International Hydropower Association (IHA) has welcomed the Portuguese government’s new National Energy Storage Strategy – a landmark initiative, representing one of the strongest national policy commitments to long duration energy storage seen in Europe.
The strategy establishes ambitious targets, including approximately 3.9 GW of pumped storage by 2030 and more than 5 GW by 2040. This confirms the central role of pumped storage as the main large scale and long duration storage solution for the Portuguese energy system.
Presented by Jean Barroca, Secretary of State for Energy, in the presence of the Minister for Environment and Energy, Maria da Graça Carvalho, the strategy represents clear political support for storage as a national priority. It marks a turning point in Portuguese energy policy; recognising that energy storage is no longer a supporting technology but an essential pillar of the future electricity system.
Portugal currently generates around 80% of its electricity from renewable sources and the government has acknowledged that additional long duration electricity storage is necessary to continue integrating renewable energy safely and efficiently.
Energy storage will contribute to ensuring security of supply, reducing curtailment, stabilising electricity prices, and strengthening energy sovereignty.
Portugal operates more than 3.6 GW of pumped storage capacity and plans to expand this significantly in the coming years.
Projects such as Alto Lindoso and the planned Minhéu pumped storage development are aligned with the long-term vision for the system.
Pumped storage enables storing large volumes of renewable energy and converting it into a fully manageable and dispatchable energy source. It provides flexibility over hours, days, and even seasonal timescales.
Portugal has relevant experience with large scale projects such as the Tâmega hydroelectric complex, one of the largest storage developments in Europe. This type of infrastructure demonstrates how excess renewable generation can be stored and later released when demand increases, improving system stability and reducing reliance on fossil fuels.
The government has announced several measures to accelerate deployment. These include competitive auctions for new storage capacity, future tenders for pumped storage projects, and regulatory reforms aimed at simplifying permitting procedures.
For IHA, the strategy sends a clear message that long duration storage is essential for achieving renewable energy targets, whilst maintaining security of supply.
Portugal has delivered one of the clearest policy signals in support of long duration energy storage in Europe. By recognising pumped storage as strategic infrastructure and creating the conditions for investment, the country is demonstrating leadership in building reliable renewable based power systems.
Electricity systems with high shares of solar and wind generation require not only generation capacity but also storage capable of shifting large volumes of energy over long periods of time. Pumped storage remains the only mature technology capable of providing storage at this scale.
Eddie Rich, CEO, IHA, commented: “Portugal’s new National Energy Storage Strategy is a strong signal that long-duration storage must be treated as essential national infrastructure.
“By outlining the strategic role of pumped storage, Portugal is showing how countries can build electricity systems that are not only cleaner but also more secure, flexible, affordable and resilient. This is the kind of ambition needed to unlock the full potential of renewable energy across Europe.
“IHA welcomes Portugal’s commitment and we look forward to working with stakeholders to accelerate the deployment of the storage infrastructure required for a reliable and secure energy transition net-zero energy future. We can with hydropower.”
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