Renewable Energies in Portugal: The Driving Force of Decarbonisation

Portugal has established itself as one of the European countries with the greatest ambition and success in the energy transition, positioning itself as a leading example in the field of renewable energies. The strategic investment in these clean sources has been the essential driving force behind the decarbonisation of the national energy system, in line with the European objectives of carbon neutrality by 2050.

With exceptional natural potential, particularly in solar, wind and hydropower, Portugal has proportionally more exploitable water resources per km² than Spain, especially in the north and centre of the country, where rivers such as the Douro, Tagus and Vouga offer significant opportunities. The country is transforming this resource into a competitive, environmental and economic advantage.

Hydropower Storage Capacity and Pumped Hydroelectricity

Portugal

• Installed hydropower capacity: around 7.3 GW (in 2023).
  
• Reservoir storage capacity: approximately 11.5 km³ (one of the highest in the EU per inhabitant).
  
• Estimated potential for reversible hydropower (pumped storage): 2,000 – 2,500 MW of additional viable capacity, with projects such as Foz Tua and the upgrading of existing dams.
  
• Current gravitational hydropower storage capacity: between 10,000 and 12,000 GWh (10–12 TWh) of electricity, with an average efficiency of 75–80%.
  

Spain

• Installed hydropower capacity: around 20 GW (higher in absolute value).
  
• Reservoir storage capacity: around 55 km³, much larger in volume, but less efficient due to evaporation and seasonality.
  
• Pumped storage capacity: around 4,000 MW already in operation, with potential for an additional 2,000 MW.
  
• Estimated energy storage: between 35,000 and 40,000 GWh (35–40 TWh).
  

Proportional Analysis (per km² or per inhabitant)
Despite Spain’s greater absolute volume, Portugal has higher hydropower storage density per km² and per inhabitant:

• Storage per inhabitant:
  
  • Portugal: ~1,100 m³/inhabitant.
    
  • Spain: ~1,000 m³/inhabitant.
    
• Potential gravitational storage per km²:
  
  • Portugal: ~130 GWh/km² (in areas with technical potential).
    
  • Spain: ~70 GWh/km².
    

In addition, Portugal’s hydropower system is more efficient due to lower evaporation rates (wetter climate in the north) and its integration with the Iberian electricity system, allowing it to play a key role in balancing intermittent renewables such as solar and wind. These figures clearly demonstrate Portugal’s strategic advantages.

Solar Energy

The generous sun in the south of the country, combined with falling photovoltaic technology costs and supportive public policies, has driven exponential growth in solar energy. In 2023, large solar parks were inaugurated, such as the Alcoutim park in the Algarve, with the capacity to supply more than 30,000 households. The expansion of distributed solar, particularly through self-consumption in homes and businesses, further strengthens the resilience of the energy system and increases citizen participation in the green transition.

Wind Energy

Wind energy continues to be one of the cornerstones of Portugal’s electricity mix. Portugal is among the EU countries with the highest percentage of electricity generated from wind power. On some days of the year, this source covers more than 70% of national demand. Land-based wind farms are well developed, particularly in the north and centre of the country, but the real breakthrough is taking place at sea: floating offshore wind farms.

Pioneering projects such as WindFloat Atlantic, off the coast of Viana do Castelo, showcase Portugal’s innovative capacity and pave the way for multiplying installed capacity several times over, ensuring energy security and reducing greenhouse gas emissions. They also contribute to preserving the marine biosphere.

Hydropower

Although more dependent on weather conditions, hydropower continues to play a fundamental role, particularly as a source of storage and system flexibility. Pumped-storage dams make it possible to store energy during periods of low demand and release it when needed, acting as “natural batteries.”

The smart integration of these three sources — solar, wind and hydropower — creates a complementary and resilient system capable of responding to fluctuations in production and demand.

Investment and National Commitment

By 2030, around €10 billion of investment is expected in the renewable energy sector. This amount will be allocated to expanding installed capacity, modernising the electricity grid, developing storage infrastructure (such as batteries and green hydrogen), and digitising the system.

The National Energy and Climate Plan (PNEC 2030) sets ambitious targets: 85% of electricity consumed in Portugal must come from renewable sources by the end of the decade. This goal will not only significantly reduce emissions but also decrease dependence on imported fossil fuels, strengthen energy security, and improve the trade balance.

Portugal as an International Reference

Portugal has already recorded entire days when all electricity consumption was supplied exclusively by renewables — a milestone achieved by very few countries. International recognition from institutions such as the International Energy Agency (IEA) and the European Commission confirms the effectiveness of the national strategy.

The focus on research and development, partnerships with universities and innovation centres, and the attraction of foreign investment for green projects further consolidate this leadership.