Portugal has achieved a significant milestone by installing one gigawatt (GW) of solar capacity in a single year. This accomplishment brings the country’s total solar capacity to 4.4 GW, which is 50% of its 2026 target. This rapid expansion of solar energy is a key component of Portugal’s strategy to decarbonize and shift away from fossil fuels.
Portugal solar deployment strategy for national energy expansion
Portugal’s solar expansion is part of a broader strategy to reduce reliance on fossil fuels and decarbonize its energy system. The country has been a pioneer in renewable energy, with a focus on hydropower and wind energy since the early 2000s. However, it is now rapidly advancing in the solar sector, with a target of installing 8.4 GW of solar capacity by 2026. Learn more about Portugal’s renewable energy goals.
In 2023, Portugal achieved a significant milestone by installing 1 GW of solar capacity in a single year, bringing the total installed capacity to 4.4 GW. This rapid expansion is supported by the country’s favorable solar conditions, with an average of 3,000 hours of sunshine per year, making it one of the top five countries in Europe for solar potential.
Government and private sector roles in Portugal solar deployment
The Portuguese government has played a crucial role in driving the solar expansion by streamlining the licensing process and introducing new legislation to fast-track renewable energy projects. This has reduced the time required for project approval from nine months to three months, making it easier for developers to bring new solar projects online.
Private investment has also been a key driver of Portugal’s solar expansion. Multinational companies like EDP Renováveis, Iberdrola, and Galp have invested heavily in large-scale solar projects, contributing to the rapid growth of the sector. These companies have taken advantage of Portugal’s competitive solar auctions, which have resulted in some of the lowest solar tariffs in the world.
Innovative technologies driving Portugal solar deployment
Portugal is also exploring innovative solar solutions, such as floating solar projects, to further increase its renewable energy capacity. In 2022, the country inaugurated its first floating solar plant on the Alqueva reservoir, with a capacity of 5 MW. This project is part of a broader plan to install 80 MW of floating solar capacity at various reservoirs across the country.
Energy storage is another critical component of Portugal’s renewable energy strategy. The country plans to increase its energy storage capacity to 2.4 GW by 2030, with a focus on pumped hydro storage and battery storage systems. This will help balance the intermittent nature of solar and wind energy, ensuring a stable and reliable power supply.
Economic and environmental impact of Portugal solar deployment
The rapid expansion of solar energy in Portugal has had a significant impact on energy prices and carbon emissions. In March 2024, solar energy accounted for 20% of the country’s electricity production, helping to reduce reliance on fossil fuels and lower carbon emissions. Explore more about Portugal’s solar power achievements in 2024.
The increased share of renewable energy in the mix has also contributed to a reduction in wholesale electricity prices. In March 2024, the average wholesale price of electricity in Portugal was 81.9 euros per megawatt-hour (MWh), compared to 97.5 euros per MWh in March 2023. This reduction in wholesale prices is expected to translate into lower energy bills for consumers and businesses.
Portugal’s solar expansion is a key component of its broader energy transition strategy, which aims to achieve carbon neutrality by 2050. The country has set ambitious targets for renewable energy, aiming to have 80% of its electricity generated from renewable sources by 2030. This will require continued investment in solar, wind, and energy storage, as well as further improvements in grid infrastructure and interconnections with neighboring countries.