Lagoa do Covão dos Curral is part of the complex of dams at Sabugueiro power plant, producing electricity from EDP in Serra da Estrela, together with the dams of Vale do Rossim, Covão da Penhas Douradas, Covão da Erva da Fome, Covão from Vale do Conde and Lagoacho.

This plant makes use of the energy from the waters of Ribeiras da Fervença and Covão do Urso, and is fed by the Vale do Rossim and Lagoacho dams, and also by this Covão do Curral weir, interconnected by a laden tunnel, a Adduction channel that leaves the Lagoacho dam, a loading chamber and a forced conduit. The plant has a single group, with a nominal power of 10 MW, equipped with a horizontal Pelton turbine. The average annual productivity is 28 GWh.

The artificial lagoon was born with the construction of this reservoir in Ribeira da Nave Travessa

It is at an altitude of 1480m, has about 1.1 km2 and a storage capacity of 159 thousand m3 of water.