The national electricity consumption reached 51.4 terawatt-hours (TWh) in 2024, marking the second-highest figure in history, second only to 2010. This growth has been accompanied by a strong commitment to renewable energy sources, which accounted for 71% of the electricity consumed, the highest percentage ever recorded.
This performance reflects the expansion of the installed capacity for renewables, which grew by 8.7% compared to 2023, surpassing 20,361 megawatts. The growth was mainly driven by solar energy, with a significant expansion of new photovoltaic parks in the southern part of the country.
Despite these advancements, the energy sector continues to face structural issues. “We have challenges we’ve been discussing for years related to licensing,” noted the president of APREN, Pedro Amaral Jorge, referring to the sluggishness and bureaucracy of administrative processes.
In an interview to mark World Energy Day, celebrated on Thursday, he further emphasized that the digitalization of networks is crucial to increasing the efficiency and stability of the system.
“Electrical infrastructure needs to incorporate digitalization, artificial intelligence algorithms, and other systems to balance the system,” he explained.
The modernization of electric grids with digital technologies, known as “smart grids,” allows for more efficient and flexible electricity management. These smart grids facilitate the integration of renewables, increase self-consumption, and use distributed storage, contributing to the stability and resilience of the national energy system — aspects made even more relevant by the recent blackout in the Iberian Peninsula on April 28.
Another structural challenge highlighted by the APREN president relates to the current design of the European electricity market. Pedro Amaral Jorge explained that the marginalist model, based on daily and intraday markets, was designed for fossil technologies and does not meet the long-term needs of renewables. This mismatch hinders access to competitive financing for the private sector.
“With this market design, it’s necessary to transition from short-term electricity markets to long-term mechanisms,” using instruments and agreements that establish energy purchase and sale commitments over many years.
The implementation of the Carbon Border Adjustment Mechanism (CBAM), which involves a carbon tax on products imported from outside the European Union, is also deemed essential to ensure fairness in international competition. Without this tool, he warns, it won’t be possible to effectively combat environmental dumping — the practice where companies sidestep environmental regulations to produce cheaper goods.
“If we compel companies operating within Europe to uphold environmental responsibility with ETS (Emissions Trading System) emissions, those exporting to Europe must bear similar responsibilities,” he asserts.
Portugal currently has more than 46 hydroelectric plants, around 260 wind farms, dozens of solar power plants, and four natural gas combined cycle plants — Ribatejo, Lares, Pego, and Tapada do Outeiro. Since 2021, the country has ceased coal-powered electricity production.
In terms of the distribution of renewables in the energy mix, hydropower stood at 28%, wind power at 27%, solar photovoltaic at 10%, and biomass at 6% in 2024. Non-renewable production, nearly entirely covered by natural gas, accounted for only 10% of consumption, while the remainder was provided by imports, which reached a record of 10.5 TWh.
