Led by Spanish company Dos Grados, the Fundão Solar PV Plant features 190,000 solar panels across 192 hectares and supplies renewable energy to 61,000 homes and businesses with a €90 million investment. It is expected to reduce carbon dioxide emissions by 826,000 tonnes annually and stands as a key contributor to Portugal’s decarbonisation and renewable energy goals.
A Major Step Toward Sustainability
The Fundão Solar PV Plant has marked a significant milestone in Portugal’s transition to sustainable energy. This large-scale solar project — led by Spanish company Dos Grados — features 190,000 solar panels spread across 192 hectares. With a €90 million investment, the plant is designed to meet the annual electricity needs of 61,000 homes and businesses.
The Fundão Solar PV Plant not only adds considerable capacity to Portugal’s renewable energy grid, but it also plays a critical role in reducing carbon emissions. The plant is expected to cut carbon dioxide emissions by 826,000 tonnes annually. This supports the government’s targets for climate action.
Khiel Palacios, CEO of Dos Grados, highlighted the project’s significance in shaping a sustainable future. According to Palacios, the benefits of the Fundão Solar PV Plant outweigh any potential drawbacks. The plant operates as a clean, efficient power source, thus providing a model for future renewable projects.
Community Impact and Employment of Fundão Solar PV Plant
In addition to its environmental contributions, the Fundão Solar PV Plant has positively impacted the local community. Situated on private land within the municipalities of Alcaria Pêro Viseu and Valverde, the project has created ten employment opportunities for residents. To address any environmental or economic concerns, the municipality of Fundão has collaborated closely with Dos Grados to minimise potential negative effects of the plant.
The project has also fostered partnerships with local landowners by integrating agricultural practices into the surrounding areas. Native livestock grazing and tree planting are taking place alongside the solar panels, thus preserving the region’s agricultural heritage. These combined efforts promote sustainable land management while supporting the local economy.
A key feature of the Fundão Solar PV Plant is its emphasis on community engagement. A pilot project has introduced a new energy community model aimed at providing affordable renewable energy to nearby residents and businesses. Within six to seven months, locals are expected to benefit from reduced energy costs and have the chance to participate in managing the plant.
Overcoming Technological Challenges
Despite its success, the Fundão Solar PV Plant faced several unexpected technological challenges during its development. One of the primary issues was the intermittent nature of solar energy production, which depends heavily on weather conditions.
In response to these challenges, Dos Grados is exploring investments in wind power and energy storage solutions. These additions could improve the adaptability of the plant and ensure a steady power supply, even during periods of low solar activity. SyCells — a technology partner — has identified electro-intensive industries like data centres and electrolysis facilities as key opportunities for integrating renewable energy.
The integration of flexible production systems and storage solutions remains critical to ensure a stable energy supply. Additionally, maintaining strong community engagement is essential for the long-term success of renewable projects.
Driving Portugal’s Energy Transition
The Fundão Solar PV Plant contributes to Portugal’s broader energy transition goals. Last year, renewable sources accounted for 35% of the country’s electricity. The government aims to increase this to 51% by 2030. Projects like Fundão’s are essential in achieving these targets, though further investments in renewable technologies are necessary to maintain momentum.
Maria João Pereira, a renewable energy expert, acknowledged the project’s role in advancing the country’s energy goals. However, she noted that challenges remain, particularly in scaling up renewable energy infrastructure and integrating it into the national grid.
The Fundão Solar PV Plant comes at a time when Portugal is achieving record-breaking renewable energy production. According to Redes Energéticas Nacionais (REN), the national grid operator, renewable energy covered 72% of the country’s electricity consumption in the first 27 days of 2025. Wind power contributed 34%, while hydropower accounted for 28%. Solar and biomass each represented 5% of the total consumption mix.
On January 27, Portugal set a new peak for renewable energy production by reaching 10,845 MW. This surpassed the previous record of 10,434 MW set in March 2024. These figures highlight the rapid progress Portugal is making in expanding its renewable energy capacity.
Portugal’s leadership in renewable energy is a testament to its commitment to sustainability. By continuing to invest in projects like the Fundão Solar PV Plant, the country is setting an example for others to follow in the global transition to clean energy.