Portugal’s renewable energy market is experiencing substantial and impressive growth, with solar PV production surging by 27% in September 2025 compared to the previous year. This remarkable development underscores Portugal’s firm commitment to renewable energy and its strategic efforts to diversify its power sources, setting a powerful example across Europe.
Portugal’s Renewable Energy Market: Strong Growth in Solar PV and Wind for Portugal renewable energy
In September 2025, Portugal produced 1,247 GWh of solar PV energy, a notable 27% increase from the previous year and a 1.6% rise from the prior month. This is a key part of why the Portugal solar energy: Unique 2025 growth is impressive. This solar boom contributed significantly to a broader green energy surge. Alongside solar, hydroelectric production rose by 23% annually to 1,493 GWh, and wind power grew by 10% to 1,158 GWh. Geothermal energy, however, remained stable at 14 GWh.
Despite a 37% annual drop in fossil fuel energy production to 1,018 GWh, the overall share of renewables in Portugal’s energy mix soared. For the first nine months of 2025, renewable sources supplied an astounding 70% of electricity demand, a significant jump from 57% in September 2024. This mix was led by hydro (28%), wind (24%), and solar (13%), demonstrating the country’s dedication to reducing carbon emissions and enhancing energy self-sufficiency.
This green transition is also fueling economic opportunities. Portugal’s energy exports in September 2025 reached 551 GWh, with renewables accounting for a massive 87% of that total. This positions the country as a potential major player in the renewable energy export market.
By the end of September 2025, Portugal’s installed solar PV capacity hit 4,553 MW. From January to September 2025 alone, the country generated 10,759 GWh of solar PV energy, a substantial increase from the 8,544 GWh generated during the same period in 2024.
Portugal’s Renewable Energy Policies and Future Prospects for Portugal renewable energy
The Portuguese government’s proactive support has been instrumental in this growth. Favorable policies like feed-in tariffs, tax incentives, and streamlined permitting have attracted significant domestic and international investment. Understanding the complete solar panel manufacturing process is key for these investors to scale operations effectively. Portugal’s strategic location and abundant sunshine make it an ideal setting for large-scale solar installations.
Looking ahead, Portugal aims to install an additional 5.7 GW of solar PV by 2026. This ambitious target aligns with its broader goal of achieving carbon neutrality by 2050. Hitting this goal requires a deep understanding of the basics of solar panel manufacturing and securing a steady supply of solar panel raw materials.
However, this rapid expansion is not without challenges. The massive influx of variable renewable energy is placing strain on existing infrastructure. A major blackout in April 2025, which affected both Portugal and Spain, was attributed to an obsolete grid struggling to manage the new energy dynamics. This highlights the urgent need for advancements in energy storage and grid modernization to ensure stability. The investment required includes not just panels but also the solar panel manufacturing machines and a clear view of the overall solar panel manufacturing plant cost breakdown.
Portugal’s progress demonstrates how effective policies can transform an energy sector. As the country continues to invest and expand, it offers valuable lessons for other nations, including Germany, on navigating the transition towards a sustainable, low-carbon energy future. Portugal’s journey shows that while the path has its obstacles, becoming a leader in the global renewable energy market is an achievable goal.
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