The Energy Transition as a Driver of Economic Growth and Job Creation in Portugal
The energy transition has evolved from being merely a response to climate emergencies to becoming one of the main engines of economic growth and innovation in Portugal. Far from representing an unavoidable cost, this structural transformation of the energy model stands as an unprecedented strategic opportunity to boost competitiveness, attract investment, and generate qualified employment.
Recent estimates from consultancy firm McKinsey suggest that the energy transition could add between 10% and 20% to the Iberian GDP by 2030, with Portugal set to benefit significantly from this momentum. At the same time, millions of “green jobs” are expected to emerge across the Iberian Peninsula — from the manufacturing of renewable energy equipment to the installation, operation, and maintenance of clean infrastructure.
The economic potential of decarbonisation lies in its cross-sectoral nature. The energy transition goes far beyond the electricity or renewable energy sectors; it extends across nearly all areas of the economy, creating complex and interconnected value chains. In Portugal, several sectors stand out for their growth potential: the production of electric vehicles and batteries — leveraging the country’s lithium reserves, a vital metal for e-mobility —, the decarbonisation of heavy industry (cement, steel, and chemicals), energy efficiency in buildings, carbon-neutral and sustainable construction, electrolysis for green hydrogen production, and self-consumption of renewable energy by companies and citizens alike.
A flagship example is the emerging green hydrogen ecosystem. Thanks to its abundance of solar and wind resources, Portugal is well positioned to become a net exporter of this clean energy source. Pilot projects already underway — such as those in the Port of Sines and the Aveiro region — are not only attracting international investment but also creating highly qualified jobs in engineering, logistics, and industrial operations. These projects require advanced technical skills but also generate indirect opportunities in sectors such as construction, services, and vocational training.
Similarly, the electrification of mobility is profoundly transforming Portugal’s automotive industry. With the gradual phase-out of combustion engine production, new industrial units dedicated to electric components, batteries, and charging systems are emerging. These activities demand a renewed workforce with training in electronics, automation, and sustainability — a challenge, but also an opportunity to reskill workers and attract young talent to technological careers.
Moreover, distributed energy generation, driven by solar self-consumption, is democratising access to energy and creating a new market for services. Small and medium-sized enterprises specialising in solar panel installation, energy storage management, or energy consulting are proliferating throughout the country, generating local employment and stimulating regional economies. It is estimated that the solar sector alone could create tens of thousands of jobs in Portugal by 2030 — many of them in rural or low-density areas.
It is also important to emphasise that the energy transition is not only about infrastructure, but also about innovation, digitalisation, and skills development. The integration of smart grids, demand-side energy management, and resource optimisation requires advanced digital competencies, creating synergies with the information technology sector. Portugal thus has a window of opportunity to position itself as an Iberian hub for “cleantech” solutions — leveraging its human capital and strategic geographic location.
However, for this potential to be fully realised, a stable policy framework, appropriate tax incentives, and a strong focus on professional training are essential. A just transition requires active employment policies that support workers in declining sectors, ensuring that no one is left behind. Collaboration between the State, businesses, educational institutions, and social partners will be crucial to align workforce skills with the needs of the emerging market.
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