Renewable Electricity in Portugal
Installed Capacity of the Different Electricity Generation Sources in Portugal (2000-2024)
Source: DGEG, APREN analysis
Source: DGEG, APREN analysis
Electricity Generation in Mainland Portugal Between (1970-2024)
The electricity generation mix in mainland Portugal has undergone significant changes over the past decades, with renewable technologies playing an increasingly important role in meeting the electricity demand. Since 2005, renewable sources have accounted for a substantial share of generation, with wind power standing out due to its notable expansion. Solar generation has also shown remarkable growth over the past ten years, with decentralized production accounting for approximately 42.5% of the total contribution from solar energy.
Source: DGEG, APREN analysis
Share of the Different Energy Sources in the Portuguese Electricity Generation Mix (2000-2024)
The growing integration of renewables in electricity generation has resulted in a decline in the use of fossil fuel-based technologies. In 2024, the renewable share in electricity production at national level reached up to 80.0%.
Source: REN, EDA, EEM, APREN analysis. Note: This percentage value is referred to the total National electricity generation and does not include pumped hydro production.
NOTE: This percentage value is referred to the total National electricity generation and does not include pumped hydro production
Energy Dependency Rate (2000-2024)
The increase in electricity generation from renewable sources has enabled Portugal to reduce its energy dependence by approximately 19.7% since the beginning of the 21st century. Historically, the period between 2011 and 2019 stands out for a consistent decline in energy dependence, although a relative peak was observed in 2015 due to a severe drought. In 2020, marked by the pandemic crisis, a historic low was recorded, after which the downward trend resumed. In 2024, the energy dependency reached 64.1%, going below the 65% target established in the NECP for 2030.*
Source: DGEG, 2024, APREN analysis.
* Normalized Energy dependency (Directive 2009/EC/28) estimated through linear regression based on historical values published by DGEG.
Avoided Costs with Fossil Fuel Imports (2015-2024)
The greater the share of renewable electricity in the Portuguese generation mix, the stronger the trend towards reducing fossil fuel imports and decreasing energy dependence on external sources. This is evident from the estimated avoided costs for 2022 — a year marked by the outbreak of the war in Ukraine — as well as from the consistency of these savings in the following years (around €2 billion per year). It is also worth highlighting that a total of approximately €18 billion in fossil fuel imports was avoided over the past ten years.
Source: DGEG, Worldbank, ERSE, REN, EDA, EEM, APREN analysis
Contribution of RES-E to the Greenhouse Gas Emissions Reduction (2015-2024)
The renewable electricity avoided, at the national level, the emission of 118 megatonnes of CO2-eq between 2015 and 2024, which is equivalent to around 74% of the CO2 emissions from the road transport sector for the same period. The value for the avoided CO2 emission allowances was estimated at 703 million euros in 2024.
Source: DGEG, Worldbank, ERSE, REN, EDA, EEM, APREN analysis
Employment Created by the Renewable Electricity Sector (2015-2024)
Continued investment in Portugal’s renewable energy sector has been a crucial driver for creating both direct and indirect skilled employment. This trend is largely attributed to the implementation of projects in socioeconomically disadvantaged regions, aiming to stimulate local development and address regional disparities. It is estimated that, by the end of 2024, the renewable sector employed over 85,000 people, reflecting ongoing growth and investment in this area.
Source: Study on the Impact of Renewable Electricity, Deloitte, 2021 (2014-2019); Study on the Impact of Renewable Electricity on Consumer Prices in 2021, Deloitte 2022; Study on the Impact of Renewable Electricity 2023, Deloitte; APREN Analysis.
Contribution of the Renewable Electricity Sector to the GDP (2015-2024)
In 2024, the contribution of renewable sources in electricity generation to the national GDP is estimated at around 2.8%. Wind energy stands out as the leading technology, due to its value chain that includes the manufacturing of industrial components as well as a range of R&D and service activities, but also solar photovoltaics that in the last two years doubled the installed capacity.
Source: Study on the Impact of Renewable Electricity, Deloitte, 2021 (2014-2019); Study on the Impact of Renewable Electricity on Consumer Prices in 2021, Deloitte 2022; Study on the Impact of Renewable Electricity 2023, Deloitte; APREN Analysis.
Contribution of the Renewable Electricity Sector to the Social Security, Corporate Income Tax, Municipal Surtax, Personal Income Tax and Value Added Tax
It is estimated that the incorporation of renewable sources in electricity generation contributed approximately: €5.2 billion to Social Security; €2.4 billion to Corporate Income Tax (IRC); €0.2 billion to the Municipal Surtax (Derrama); €4.3 billion to Personal Income Tax (IRS); and €4.2 billion to Value Added Tax (VAT)
* Indicators calculated from linear regression based on the historical values in Deloitte’s Study.
Source: Study on the Impact of Renewable Electricity, Deloitte, 2021 (2014-2019); Study on the Impact of Renewable Electricity on Consumer Prices in 2021, Deloitte 2022; Study on the Impact of Renewable Electricity 2023, Deloitte; APREN Analysis.
Source: Study on the Impact of Renewable Electricity, Deloitte, 2021 (2014-2019); Study on the Impact of Renewable Electricity on Consumer Prices in 2021, Deloitte 2022; Study on the Impact of Renewable Electricity 2023, Deloitte; APREN Analysis.