Manuel Andrade Neves argues that the future of energy investment lies in networks and storage

The electricity grid and energy storage are increasingly seen as the most attractive assets in the global landscape of the energy transition. The potential returns are significant, especially in jurisdictions with clear rules, regulatory predictability and long-term planning, reflects Manuel Andrade Neves, partner at Abreu Advogados, in an opinion piece published by ECO.

Entitled “Networks and storage: the only magnet for energy capital”, the article highlights that electricity grid infrastructures and storage systems are becoming the main investment targets within the energy sector — and that Portugal must keep pace with this trend.

“The bottleneck for clean energy is no longer in panels and turbines — it lies in cables, substations and system stability […]. That is why the major energy players are ‘buying’ grids in jurisdictions that set out clear rules and long-term plans”, notes Manuel Andrade Neves, citing investments made in the United Kingdom as an example.

The lawyer also warns of the urgent need for change if Portugal is to compete for capital in the energy sector. “Why is it not the same in Portugal? Here, the transmission grid is a public service under concession: REN develops and operates the National Transmission Network under a concession agreement with the State. In other words, a group such as Iberdrola cannot invest directly in transmission networks in Portugal,” he explains.

Manuel Andrade Neves argues that Portugal needs to accelerate regulatory reform, long-term planning, binding implementation and Iberian coordination in order to make networks and storage more attractive to global energy capital. “Clean energy will not wait; the grid is the strategy, and storage is essential,” he concludes.

Read the full article here.