Portugal is solidifying its position as a European leader in renewable energy, making significant strides toward a greener future. In 2023, renewable sources accounted for 61% of the country’s electricity consumption, a remarkable achievement driven by favorable weather conditions, technological advancements, and heavy investments in wind, water, solar, and biomass energy.

One of the most notable developments last year was the 70% increase in hydroelectric power production and a 43% rise in solar energy generation compared to 2022. These gains reflect not only the growing capacity of renewable energy infrastructure but also the nation’s commitment to reducing its carbon footprint. From January to July 2024, renewable energy represented over 83% of electricity production, a 14.2% jump from the same period the previous year.

Portugal's success places it among the top four European nations with the highest incorporation of renewable energy, following Norway, Austria, and Denmark. This milestone also aligns with the country’s broader energy transition goals, which began decades ago and saw a major turning point in 2021, when Portugal became one of the first European nations to cease coal-powered electricity production.

This shift towards cleaner energy sources has not only benefitted the environment but also the economy. According to the Portuguese Renewable Energy Association (APREN), renewable energy saved Portugal around €1.95 billion in fuel imports and €750 million in CO2 emissions permits in 2023. These figures underscore the economic value of investing in renewables, in addition to the clear environmental benefits.

Wind energy remains a crucial component of Portugal’s electricity production, accounting for 25% of the total. Meanwhile, the rapid expansion of hydroelectric and solar energy capacity is helping Portugal meet growing energy demands in a sustainable way. These efforts align with European Union objectives, such as the RePowerEU plan and the Renewable Energy Directive, which targets 42.5% renewable energy in total consumption by 2030.

Portugal's renewable energy progress is supported by strong technical expertise, competitive operational costs, and regulatory stability, making the country an attractive destination for investors. The recent approval of a €1 billion aid package from the European Commission to support the production of green equipment in Portugal highlights the momentum behind the country’s green transition.

This growing emphasis on clean energy is creating a ripple effect across industries, with many companies emerging as leaders in renewable technology solutions. As Portugal advances its renewable energy agenda, it is not only contributing to global climate goals but also creating new economic opportunities.

Portugal’s commitment to renewable energy places it at the forefront of Europe’s green transition, demonstrating how a mix of innovation, investment, and strategic policy can drive both environmental and economic success.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes