What does Portugal's energy policy mean for the energy sector?

The Portuguese Ministry of Energy has allocated €100 million for grid flexibility and energy storage projects to be completed by the end of 2025. This initiative aims to enhance the flexibility and stability of Portugal's power supply system amid its record-breaking solar electricity production.

Why is Portugal launching a solar energy storage project?

This initiative aims to enhance the flexibility and stability of Portugal's power supply system amid its record-breaking solar electricity production. On July 31, the ministry announced the allocation of €99.75 million through a call for tenders to install energy storage projects totaling 500 MW.

What is Portugal's energy supply?

In 2019, fossil fuels accounted for 76% of Portugal’s total energy supply (TES).1 Portugal has no production of crude oil, natural gas or coal and relies entirely on imports for these energy sources. Domestic energy production comes primarily from bioenergy (direct use and electricity generation) and generation from wind and hydro (Figure 2.2).

Who supplies the most electricity in Portugal?

EDP is by far the largest supplier of electricity purchased at the wholesale level in Portugal. In 2019, it supplied 46% of the electricity purchased at the wholesale level in Portugal, followed by REN Trading (9%) and Endesa (5%). Numerous renewable energy generators under the FIT regime supplied the remaining 40% (ERSE, 2020d).

What is Portugal's Energy Strategy?

The strategy includes a target of 20.4 GW of operational PV systems by 2030, comprising 14.9 GW of large-capacity plants and 5.5 GW of decentralized generation. Additionally, Portugal has launched its first tender for biomethane and green hydrogen as part of this comprehensive energy strategy.

What percentage of Portugal's energy is renewable?

The share of renewables in Portugal's energy mix has grown from 27% in 2005 to 54% in 2017, with the last coal-fired power plant closing in 2021. As part of its new energy strategy, Portugal aims to produce 80% renewable electricity by 2026 and 85% by 2030.