Market Overview
The Portugal Renewable Energy Market reached a size of USD 3.80 Billion in 2024. The market is forecast to expand to USD 7.45 Billion by 2033, growing at a CAGR of 6.84% during the forecast period 2025-2033. Growth is driven by government policies promoting decarbonization, ambitious EU climate targets, and incentives for solar, wind, and hydro projects, alongside technological advancements and declining renewable costs.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Portugal Renewable Energy Market Key Takeaways
- The market size in 2024 was USD 3.80 Billion.
- The market is projected to grow at a CAGR of 6.84% from 2025 to 2033.
- The forecast period for the market growth is 2025-2033.
- Government policies such as the National Energy and Climate Plan (NECP) 2021-2030 target 80% renewable electricity by 2030, supporting strong market growth.
- Technological improvements in solar PV, wind turbines, and energy storage reduce electricity costs and increase competitiveness against fossil fuels.
- Portugal’s abundant solar irradiance and wind resources make renewable projects viable and attractive for investment.
- Smart grids, battery storage, and hybrid systems enhance energy management and grid integration.
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Market Growth Factors
In the EU, policies influence the renewable energy market in Portugal. The policies give support to national energy and climate targets. Among them, the NECP 2021-2030 targets that renewable sources generate electricity to reach 80% by 2030. It also offers feed-in tariffs, tax credits, and other benefits to developers upon generating renewable energy. Policies foster investment that is easy. Policies foster grid access for partnerships that are public and private. Policies foster energy that is renewable. Portugal may improve investor confidence with the phaseout of coal and reduction of carbon emissions. Energy storage, smart grids, and hybrid systems get large investments for sustainable development.
Technology progresses toward renewable energy development in Portugal. Solar photovoltaic panels, wind turbines, and energy storage become more efficient to lower the levelised cost of electricity of renewable energy so renewables can compete against fossil fuels. If people invest more in smart grid technology, digital tools, and predictive analytics, they reduce curtailment, also they increase reliability. Battery storage, new offshore wind, and floating solar technologies can help integrate into the grid and better manage loads, spurring additional institutional and private investment in turn.
Natural conditions and geographical factors favor renewable energy generation in Portugal, with southern regions generating high solar irradiance levels for large-scale PV power to generate power. Both coastal and inland areas have good and relatively consistent wind resources in general. Wind powered electricity production totaled and increased by 23% during 2024. Rivers and reservoirs generate hydropower in a reliable, flexible, and hybrid form with variable renewables. Hybridization diversifies investments greatly in offshore wind and floating solar power technologies.
Market Segmentation
Type Insights:
- Hydroelectric Power: The market segment includes power generated from Portugal’s river and reservoir systems, contributing reliable and flexible energy.
- Solar Energy: Solar PV installations benefit from high solar irradiance, especially in southern Portugal, supporting large-scale and distributed generation.
- Wind Power: Includes onshore and emerging offshore wind projects, leveraging coastal and inland wind resources.
- Bioenergy: Covers renewable energy derived from biological sources.
- Others: Encompasses other renewable energy types not classified above.
End User Insights:
- Residential: Renewable energy consumption in households.
- Commercial: Renewable energy use in business premises.
- Industrial: Renewable energy deployment in manufacturing and industrial sectors.
- Others: Includes additional end users beyond the defined categories.
Regional Insights:
- Norte
- Centro
- A. M. Lisboa
- Alentejo
- Others
Each region is analyzed for market trends and prospects from 2025 to 2033.
Regional Insights
The dominant regions in Portugal’s renewable energy market include Norte, Centro, A. M. Lisboa, and Alentejo. Wind energy accounts for approximately 23% of Portugal’s electricity in 2024, with strong geographic diversity supporting solar, wind, and hydropower. This blend of resources enables stable market growth and supports the transition to a renewable-driven energy sector.
Recent Developments & News
In July 2025, Portugal announced a €400 million investment to modernize its electricity grid and expand battery energy storage capacity from 13MW to 750MW, co-financed by EU funds. The initiative includes a 2026 auction for battery energy storage systems (BESS), €137 million for grid control upgrades, and €25 million for solar-plus-storage infrastructure, aimed at enhancing grid resilience after a major blackout.
In June 2025, Neoen inaugurated Portugal’s largest solar park, the 272 MWp Rio Maior and Torre Bela Solar Farms, now operational and generating over 500 GWh annually, enough for 110,000 homes. Eighty percent of the power will be sold via 15-year PPAs to the government. The project maintains biodiversity, preserving over 6,000 cork oaks.
Competitive Landscape
The market research report has provided a comprehensive analysis of the competitive landscape, including market structure, key player positioning, winning strategies, and detailed profiles of major companies.
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