Renewable energy sector

Portugal's geographical position is favorable to multiple forms of renewable energy, with the country holding the following endogenous characteristics: rainfall (orography), sun hours (solar), topography (wind), seacoast (waves and offshore wind), forest (biomass). Companies based in Portugal are driving innovation in the renewable energy sphere and play an important role in greening Europe's energy mix.

The country has demonstrated important leadership in the transition towards clean energy, by integrating electricity from renewable sources of energy. In 2022, the combined share of all renewable sources of energy in the electricity production mix reached 61% (while in the European Union was only 38%, in 2021)¹, and it is expected to continue to grow, thanks to ongoing projects.

Portugal also plays an important role in the production of components for renewables, having attracted relevant international players in the sector, namely for wind energy, such as blades, towers, rotor blades, solar panels, etc.

Furthermore, the country has been a pioneer in attracting and implementing technological advances and investments in emerging renewable sources, with internationally-known projects in Floating Offshore Wind, Wave, Tidal and Floating Solar.

¹ Eurostat.
Source: APREN, IEA, Portuguese Government, WindFloat Atlantic, DGEG, Eurostat.

Did you know?

… Ocean Winds developed Europe’s first Floating Offshore Wind farm in Viana do Castelo, in a project called WindFloat Atlantic, with a €60M support from the European Investment Bank? This was the result of an international joint venture between EDP Renewables, Repsol and Principle Power, estimated to be saving up to 33.000 tons of CO2 annually.

Production of green energy

Portugal is a leading player concerning the incorporation of renewables in electricity, with ambitious plans to expand its production in emerging green sources.

In 2022, 61% of the electricity produced came from renewable sources, with mature technologies such as Wind and Hydro representing 24% (13.438 GWh) and 23% (12.434 GWh) of total national production of electricity, respectively. Solar energy has been facing high growth, as in 2019, Portugal only produced 1.006 GWh, while in 2022 it amounted to 3.472 GWh.

Portugal has new green power plants under construction. Recently, the country published its intentions to increase energy production in Offshore Wind (10 GW by 2030), Green Hydrogen (that should cover 2% of the country’s energy needs by 2030) and Solar (9 GW in 2030).

The new goals, associated with current Renewables production, will help the country to achieve its commitment of carbon neutrality by 2050.

Production of electricity by energy source, in Portugal | 2022

Production of green components

Portugal has been able to attract international green component players to set up a relevant manufacturing and R&D footprint in the renewable energy sector.

Portugal has been able to attract major foreign players that produce equipments and components for the renewable energy sector (wind turbines, generators, molds and others). This growth mirrors the country’s competitiveness and attractiveness in the sector, the nearshoring effect of European supply chains, highly skilled workforce and EU’s increasing demand for green energy.

CS Wind, Enercon and Siemens Gamesa are among the key international players that have chosen Portugal to expand their industrial capacity in wind energy components.

Simultaneously, companies, such as the Portuguese based Fusion Fuel, are producing highly innovative hydrogen generators mounted to a specially-designed concentrated photovoltaic solar tracker.

There has been a strong investment in Portugal in processes and technologies that maximize energy efficiency and storage. Energy engineering developers, such as Principle Power, combined with R&D hubs from foreign green component manufacturers, such as Vestas and Voltalia, boost the development of an innovation ecosystem in the country.

Did you know?

… Enlitia is revolutionizing the way renewable power is produced, distributed and consumed, by harnessing the power of AI, in order to predict and analyze production intensity? The technology has resulted into an additional value of over €2M per GW produced. In 2020, the Portuguese company was awarded both for Best AI Project for Energy and Best Future AI Project from the International Data Corporation.