Iberdrola begins installing batteries at its solar plants in Alcochete and Algeruz
- The batteries can store enough energy to supply electricity to more than 10,000 homes for four hours, with zero CO₂ emissions.
- The installation of the batteries in Alcochete and Algeruz will create more than 100 jobs during peak construction periods.
This week, Iberdrola is beginning the installation of BESS (Battery Energy Storage Systems) at the Alcochete I and Algeruz II solar plants, both located in the Setúbal district. With storage capacities of 100 MWh and 80 MWh, and grid connection capacities of 25 MW and 20 MW respectively, these batteries can store enough energy to supply electricity to more than 10,000 households for four hours, without CO₂ emissions.
The construction and installation of these storage systems represent a significant investment in the local economy. Engineering works, civil construction, electrical installation and system integration will require around 100 workers at peak activity, including specialised renewable energy teams. This will contribute to economic growth in the Setúbal district and support the development of technical skills linked to the energy transition.
Integrating energy storage into these plants makes it possible to store surplus energy generated during periods of peak solar radiation, avoiding curtailment and improving overall system efficiency. The stored energy can then be dispatched during peak demand periods, helping to reduce market volatility and strengthen grid stability.
According to Alejandra Reyna, Managing Director of Iberdrola Renewables Portugal: “The batteries to be installed at the Alcochete I and Algeruz II projects will help convert more renewable energy into firm, dispatchable power for the country. Portugal is uniquely positioned to lead in renewable energy thanks to its natural resources. Clear, stable and predictable regulatory and fiscal frameworks are essential to ensure that investment keeps pace with the country’s ambitions in the energy sector.”
The projects were awarded under the “Grid Flexibility and Storage” tender, funded by Portugal’s Recovery and Resilience Plan (PRR), which aims to accelerate the deployment of storage solutions within the National Electricity System (SEN).
Iberdrola’s contribution to storage
With these new systems, Iberdrola reinforces its position as one of the leading storage operators in the Iberian Peninsula. The company already has 4,500 MW of pumped-storage hydro capacity, operates several hybrid solar and wind projects, and is developing a growing portfolio of battery storage solutions in Portugal and Spain.
The integration of the Alcochete I and Algeruz II systems consolidates Iberdrola’s role as a leader in energy storage in Iberia and helps position Portugal and Spain at the forefront of electrification in Europe.
Complement to the 2019 solar auction projects
The installation of these storage systems complements the assets awarded to Iberdrola in the 2019 solar auction, which total 185 MW of installed capacity and more than 300 GWh of annual generation. All projects were commissioned before 2025, including the Carregado plant (62 MW), which completed the development of the seven lots awarded to Iberdrola in that auction—making the company the first to fulfil its construction commitments.
Around 1,000 workers were employed during the construction of the solar plants, making a significant contribution to the local economy.
With the addition of BESS systems, the solar energy generated can now be used more flexibly, further strengthening the integration of renewable energy into Portugal’s National Electricity System (SEN).
The importance of storage in today’s energy landscape
Iberdrola combines short-duration storage technologies, such as batteries, with long-duration solutions like pumped-storage hydroelectricity. The Tâmega system is now one of Europe’s largest “natural batteries”, further enhanced by hybrid wind farms currently under construction—a benchmark model for the safe, efficient and competitive integration of renewable energy and the optimal use of existing grid infrastructure.
Storage is essential to transforming variable renewable generation into firm and flexible energy. It enables higher penetration of renewable sources, reduces dependence on fossil fuels, and contributes to more competitive energy costs.
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