Portugal’s September Storage Auctions and the Bankability Gap
https://lnkd.in/eu6JsXMg
Portugal’s storage sector got sharper numbers this week: APREN confirms two competitive procedures land in September — up to 750 MVA for standalone battery storage, plus another 300 MVA for co-located storage on new renewable generation projects.
https://lnkd.in/e2Pj6tf5
Going from 20 MW commissioned by the end of 2025 to a 3 GW target by 2030 — and 4.5 GW by 2040 — is a steep curve. APREN’s own reading is candid: both tenders are fully exposed to market revenues, with no capacity mechanism yet remunerating availability. That gap between installed-capacity ambition and bankable revenue certainty is exactly where developers earn their keep.
We spent this week doing exactly that: revising a Development Services Agreement for a standalone storage participant preparing for the September auction, working the commercial terms line by line with two separate counterparties in parallel.
The pattern we keep seeing: sponsors want cost and timeline certainty before committing capital to a process with market-only revenue exposure.
That means DSA terms have to do real work — allocating auction risk, setting clear milestones, and keeping the door open for the asset to change hands post-award if a sponsor’s strategy shifts.
Standalone storage without a capacity payment is still a young asset class in Portugal. How the auction design handles that gap will shape how fast the class matures.
For developers eyeing the September window: is market-only revenue enough to underwrite standalone BESS at scale, or does real bankability wait for a capacity mechanism?