Electricity in Portugal - statistics & facts
Portugal has the capacity to generate as much as 95 percent of its monthly electricity from renewable energy sources when wind and water are abundant. In April 2024, hydropower plants and wind turbines alone accounted for almost 80 percent of the electricity produced monthly in the country. On an annual basis, wind and hydropower were the leading sources of electricity generation in Portugal in 2023. With more than half of its electricity coming from these sources, the country’s reliance on fossil fuels is decreasing.
Portugal has set an example for other EU countries, showing that investing in renewable energy sources is sustainable for the economy and the population. If the power generation sector is complemented by an interconnected power grid, integrated with energy storage facilities, the country would have the potential to produce the totality of its electricity from renewables.
Renewable energy transition in Portugal
Portugal closed the last coal-fuel power plant in 2021, nine years before the country’s scheduled phase-out of this power source. The electricity sector’s consumption of natural gas has also been decreasing, as more hydroelectric plants, wind farms, and solar energy installations have been built in the country. Portugal’s hydropower capacity has increased by 45 percent over the last 10 years, making it the source with the largest installed power capacity in the country in 2022. As of June 2023, Pego Wind Farm was the biggest onshore wind power farm under construction in Portugal. Its commissioning year was scheduled for 2025, and it will add over 260 megawatts to the country’s wind power capacity.Affordable electricity prices in Portugal
On top of being a renewable energy leader, Portugal also has some of the most affordable electricity prices in the European Union. In 2022, when the tightening of natural gas supply drove electricity prices up in the European countries, the price of electricity for households in Portugal stood below 25 euro cents per kilowatt-hour. Non-household electricity prices were even less expensive in the country that year. In 2023 and 2024, monthly wholesale electricity prices in Portugal were on a declining trend. They reached 13 euros per megawatt-hour in April 2024, one of the lowest prices since 2019 and the lowest among EU countries.Portugal has set an example for other EU countries, showing that investing in renewable energy sources is sustainable for the economy and the population. If the power generation sector is complemented by an interconnected power grid, integrated with energy storage facilities, the country would have the potential to produce the totality of its electricity from renewables.
