Portugal is making a final push to allocate tens of millions of euros from European Union recovery funds into battery storage and biomethane production, as a critical deadline for project completion approaches.
The Portuguese government has submitted a revised Recovery and Resilience Plan (RRP) proposal to Brussels. This plan seeks to channel €60 million ($64.4 million) into these green energy initiatives.
Environment and Energy Minister Maria da Graça Carvalho is expected to formally announce the investment. The announcement will occur during an upcoming parliamentary hearing discussing the 2026 State Budget bill.
The funds are divided, with €40 million ($42.9 million) earmarked for new electricity storage systems. The remaining €20 million ($21.5 million) will support biomethane production projects.
This RRP revision marks Portugal’s last formal opportunity to adjust its national plan. All investments must be completed and officially verified by August 31, 2026.
For the €40 million dedicated to batteries, the Ministry of Environment and Energy (MAEN) confirmed it would “rescue” projects previously left unfunded. These are projects from an earlier competitive call, bypassing the need for a new tender process.
However, project developers who received approval in January 2025 for electricity storage systems have reported difficulties. They cite the tight deadlines for bringing their batteries into operation.
MAEN is currently negotiating with Brussels to secure an extension for these deadlines. The process remains in a negotiation phase.
A previous tender launched by the Environmental Fund in mid-2024 for “Grid Flexibility and Storage” attracted significant interest. It received 79 applications requesting nearly €100 million ($107.3 million) for battery projects.
Ultimately, 43 of these projects were approved. They are set to receive funding to install at least 500 megawatts (MW) of energy storage capacity into Portugal’s public grid.
Key beneficiaries from this earlier call included Iberdrola Renewables Portugal, which secured approximately €19.7 million ($21.1 million) for six storage projects. Other major recipients were Solara4 Phase4, receiving €16.5 million ($17.7 million) for the Alcoutim solar plant, and Revendosol, with €14.8 million ($15.9 million) for a solar plant in Alentejo.
Regarding the €20 million allocated for renewable gases, the government stated it would prioritize biomethane projects. Officials highlighted the significant untapped potential in this specific area.
Unlike a previous auction that provided support for operational costs, these new funds are specifically designated as investment aid for biomethane production.
In a prior call for hydrogen and renewable gases support, nine biomethane projects were among 17 approved applications. This indicates a strong existing interest from producers in this renewable gas sector.
The Environmental Fund had previously approved 17 projects in June 2025 under a €70 million ($75.1 million) RRP-financed initiative. That program also targeted hydrogen and other renewable gases.
Beneficiaries from that earlier round included entities such as Mota-Engil Bioenergy, Recivalongo, Bioenergia GBP I, AGERE, Laboratórios Basi, PTSunHydrogen, Paradigma Milenar, Símbolo Exigente, Sãra Green Energy, H2Zone, and La Sabina Green Energies.
The final payment request to the European Commission must be submitted by September 30, 2026. Brussels is then expected to complete its final assessment of the Portuguese RRP by November 30, 2026.