Lisbon, April 21, 2026 (Lusa) - Portugal's national energy grid, REN, told parliament on Tuesday that "storage" must accompany renewables and "biomethane is the most immediate way to decarbonise the gas sector."
The Socialist Party (PS) and the Social Democratic Party (PSD) requested a hearing at the environment and energy committee, where manager João Conceição said the company "strongly supported storage needs."
He said this solution was necessary to compensate for renewable energy volatility, strengthen supply security and mitigate wholesale market price fluctuations.
"Storage, in our opinion, should come side by side with renewable energy development," he said.
He added the technology was "very relevant for price stabilisation" to counteract periods when electricity prices drop to zero during the day and rise to near €100 per megawatt-hour during night peak hours.
João Conceição said REN considered the current grid could accommodate the 750 megawatts of batteries the government announced and hybridisation projects among production, consumption and storage without significant additional investment.
Still, REN included an additional €220 million investment boost in the final electricity plan version to create conditions for new storage capacity, including water pumping and more short-term battery solutions.
The company presented a summary of its electricity and gas investment plans at the hearing. REN linked these investments to the need to ensure supply security, integrate renewables, modernise assets and meet energy policy goals, while seeking to limit tariff impacts.
He said biomethane was the most immediate way to decarbonise the gas sector, as it enabled energy goals to be aligned with agricultural and waste management policies.
Biomethane had "two great advantages: it is bio and therefore renewable, and it is methane." This means the gas has characteristics similar to natural gas and requires few grid modifications, he added.
Still, he warned that Portugal's biomethane potential would remain limited compared to national gas consumption.
"With all the potential of biomethane, even from an optimistic perspective, it will always be around five Terawatt-hours (TWh). Portugal's gas consumption in 2025 was 40 TWh," he said.
REN therefore predicts a phased approach: a first stage with smaller investments to create centralised biomethane injection points, followed by a later phase with the possible development of a dedicated pipeline between Évora and Monforte if production reaches a critical mass.
The hearing aimed to debate the 2024 Electricity Transport Network Development and Investment Plan (PDIRT-E) and the 2026-2035 National Gas Transport Network, Storage Infrastructure and Liquefied Natural Gas Terminals Development and Investment Plan (PDIRG).
SCR/LYT // ADB.
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