Portugal’s cumulative solar photovoltaic capacity reached 3.9 GW in 2023.⁶

Portugal’s updated National Energy and Climate Plan (NECP) sets an ambitious target of 20.4 GW of installed solar PV capacity by 2030. The majority of this expansion, 14.9 GW, will come from large-scale utility projects, while the remaining 5.5 GW is allocated for decentralized solar installations, such as rooftop solar and community projects.⁷

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Wind power: the total costs are expected to be in the range of $59.39 – $61.86/MWh, for the lowest discount rate, and $83.15 – $85.62/MWh, for the highest discount rate.

Solar PV: In 2022, PV panels will cost approximately $636 for a small 0.3 kW to 0.5 kW installation.

Natural Gas: $50-$122/MWh and $52.72-$124.75/MWh, respectively for 5% and 10% discount rates.

Coal: The last coal-fired power plant was shut down in 2021. Coal is no longer a primary source of electricity generation.

Between January 1st and May 31st of 2023, 18,751 GWh of electricity were generated from Continental Portugal, of which 73.2% came from natural resources (30.5% wind, 28.30% hydro, 7.6% bioenergy, and 6.8% solar). Other sources include: Natural Gas (15.9%), Fossil CHP (4.7%), and Pumped Storage (6.2%).⁸

Portugal places a high priority on a consistent 24-hour electricity supply. To complement its primary renewable energy sources, the country may need to rely on natural gas plants or electricity imports during periods of peak demand to ensure grid stability.¹⁰

There is no definitive record of the exact number of residential solar panels Portugal installed available online. However, EDP, a major energy provider in Portugal, claims to have surpassed 100,000 residential solar installations on the Iberian Peninsula (including Portugal and Spain) by 2022.¹²

According to publicly available records as of May 2024, there are about 236 installed and projected solar farms in Portugal.¹¹

Current Market Demand: In 2021, there was a total installed capacity of 580.46 MW, and as of 2023, Portugal has approximately 1,769.21 MW of installed decentralized electricity production from solar sources.²⁵

Projected Market Demand: Portugal’s National Energy and Climate Plan sets ambitious targets for decentralized solar photovoltaic energy. The country aims to achieve an installed capacity of 0.8 GW by 2025, increasing to 2 GW by 2030.¹⁶

At the end of 2022, Portugal’s solar power sector expanded significantly, with installed capacity climbing more than 45% to 2591 MW in 2021. The country’s solar energy market is projected to maintain a robust growth trajectory, expanding at a CAGR of over 6.5% through 2029.¹²

The average monthly income for workers in the solar industry in Portugal varies based on their roles and experience.

Solar engineer: The average salary in Portugal is $43,552 USD yearly or an equivalent rate of $20 USD hourly. An entry level solar engineer with 1-3 years of experience earns an average annual salary of $30,889 USD, while a senior level solar engineer with more than 8 years of experience earns an average of $53,659 USD annually.¹³

Solar panel technician: The average salary in Portugal is $22,677 USD yearly, or an equivalent rate of $11 USD hourly. An entry level solar panel technician earns an average annual salary of $17,032 USD. On the other end, a senior level solar panel technician earns an average salary of $27,253 USD annually.¹⁴

The current population of Portugal in 2024 is 10,223,349.¹⁵

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Factory rent/mortgage: The average rent for commercial properties in Portugal can vary based on location, size, and other factors. The average rent for commercial properties is about $14-19 USD.

Electricity cost: As of December 2023, the electricity price for businesses is $0.150 USD per kWh. This includes all components of the electricity bill such as the cost of power, distribution, and taxes.

Equipment maintenance: There is no precise data found on the equipment maintenance costs for the solar panel production factory in Portugal. The value depends on equipment types and complexity, and the type of maintenance practice.

Administrative costs

Salaries & Wages: The average labor cost for solar panel production in Portugal is approximately $22,378.53 USD per year or $10.75 USD per hour. The average salary of a solar engineer in Portugal is $43,552 USD yearly or an equivalent rate of $20 USD hourly. The average salary of a solar panel technician in Portugal is $22,677 USD yearly or an equivalent rate of $11 USD hourly.

Research and Development: The cost of research and development varies depending on the manufacturer’s expertise, experience, and the degree of innovation of its solar panels.

Total Installed Capacity:

Portugal currently has 8.8 GW of hydroelectric capacity, 13.3 GW of onshore wind, and 3.1 GW of solar, which together represent 87% of its total installed capacity.⁸

Electricity Generation:

In the first half of 2023, Portugal produced about 18,751 GWh of electricity, of which 73.2% came from natural resources (sources (30.5% wind, 28.30% hydro, 7.6% bioenergy and 6.8% solar). Other sources include: Natural Gas (15.9%), Fossil CHP (4.7%), and Pumped Storage (6.2%).⁸

Electricity Consumption:

The most important figure in the energy balance of Portugal is the total consumption of 48.41 billion kWh of electric energy per year. Per capita, this is an average of 4,650 kWh. The country produces more electricity than it consumes, with power plants generating 108% of the nation’s energy needs. This means Portugal has the potential to be completely self-sufficient in electricity.¹⁸

Grid Infrastructure:

Portugal’s electricity grid comprises a national transmission system operating at very high voltage levels, connected to Spain via nine interconnections. The distribution of electricity to end-users is handled by 13 distribution system operators (DSOs), using a network of high, medium, and low-voltage lines and cables.¹⁹

Energy Access

Portugal has achieved high levels of electrification with 100% of the population having access to electricity.²⁰

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• Portugal’s strategy to reach carbon neutrality centers on significantly expanding renewable electricity generation, transitioning to electric power for various energy uses, and implementing measures to reduce energy consumption.
• Portugal has set aggressive targets for reducing emissions and increasing energy efficiency by 2030. The country aims to significantly expand its renewable energy sector, targeting 85% of electricity generation from clean sources, which is a substantial increase from its already high 2022 levels which was 60%.
• Portugal’s legal framework supports individuals and communities in generating their own electricity through self-consumption units. The excess energy generated were to be injected into the public grid or shared within a collective self-consumption scheme or an energy community.
• Also, under the terms of a decree-law, Portugal has approved an exceptional regime that is in force until 19 April 2024, all UPAC’s with installed power equal to or less than 1 MW are exempted from prior control of urban operations from municipalities and PV Plants intended for self-consumption are exempt from environmental impact assessment.

• Simplified permits for renewables: The Portuguese government has eliminated the need for renewable energy developers to obtain operating licenses for power plants, battery storage systems, and self-consumption units. However, these projects must still meet grid connection requirements as confirmed by the network operator.²¹
• EU production plan funds: The European Commission has granted Portugal €350 million to support domestic companies producing renewable energy equipment such as solar panels, batteries, and heat pumps. This funding aims to accelerate Portugal’s transition to a carbon-neutral economy.²²
• The 220 solar PV projects: In March 2020, Portugal accelerated the development of renewable energy by streamlining the approval process for 220 solar power plants. Additionally, the country invested in public transportation and implemented a highly effective financial program to improve building energy efficiency.²³

Installed Projects ^26282930

Central Fotovoltaica Alcoutim (Alcoutim Solar Power Plant):

• Location: Alcoutim
• Capacity: 219 MW
• Details: Inaugurated Oct 2021. Developed by WElink Energy/Solara4 in partnership with China Triumph International Engineering Company

EDP’s Alqueva Floating Solar Power Plant:

• Location: Alentejo
• Capacity: 5 MW
• Details: Operational since July 2022, largest floating solar farm on a dam in Europe. Developed by Energias de Portugal (EDP)

The Cerca Photovoltaic Plant:

• Location: situated in the municipalities of Alenquer and Azambuja
• Capacity: 202 MWp capacity
• Details: Operating 2024, owned by EDP Renewables and it is the company’s largest solar plant in Europe to date

Mendo Marco Solar PV Park

• Location: Evora, Portugal
• Capacity: 24.2 MW
• Details: Commissioned in 2022. This project was developed and owned by Solaria Energia y Medio Ambiente

Central Solar Fotovoltaica Ourika

• Location: Ourique, Beja, Alentejo
• Capacity: 46.1 MW
• Details: Operational and Commissioned since 2018. Developed by the WElink Group and owned by Allianz Capital Partners

Projected Projects ²⁷³¹

Fernando Pessoa solar project:

• Location: located in Santiago do Cacém
• Capacity: 1200 MW
• Details: Expected to be the largest Europe photovoltaic plant. Under construction by Iberdrola with Prosolia Energy as partner. Expected to come on stream 2025.

Casal de Cortica solar project:

• Location: Leiria
• Capacity: 18 MW
• Details: Developed and currently owned by Aura Power Developments (Portugal) Unipessoal.

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• Beon Energy: They manufacture micro-inverters and solar kits to optimize energy storage during peak demand. Their system, which combines a solar panel and a wall socket, generates controllable electricity which empowers customers to manage energy consumption, lower electricity bills, and save money.
• Brighter Energy: The Company is a solar technology innovator focused on creating sustainable energy solutions. By crowdsourcing power equipment, labor, and financing from local businesses, we offer affordable renewable electricity to our customers.
• Aura Power: A leading developer of large-scale solar and battery storage projects. We deliver clean energy solutions, support local communities, and combat climate change. They focus on environmental stewardship and community engagement with extensive project portfolio across Europe and North America.
• Magpower: This Company specializes in creating innovative photovoltaic solar modules and trackers designed to deliver affordable, sustainable energy. Their technology utilizes concentrating optics to focus sunlight onto high-efficiency solar cells, maximizing energy output.
• Martifer Solar: The Company is focused on developing renewable energy solutions. Their expertise spans from manufacturing photovoltaic products to designing and constructing solar energy projects worldwide. They also provide site preparation services as a contractor.