The Government of Portugal has announced a plan to accelerate the incorporation of renewable energy sources in its electricity generation, aiming to achieve 80% of its energy from renewable sources by 2026, four years ahead of schedule.

Portugal has set a target of 20.4 GW of solar photovoltaic (PV) capacity by 2030, which is the largest allocation among all power generation sources.

The plan was unveiled in the first review of the 2030 National Energy and Climate Plan (PNEC 2030), published by the Ministry of Environment and Climate Action (MAAC).

The step brings Portugal closer to its goal of climate neutrality by 2045.

The country’s energy transition strategy involves an investment of €75 billion (~$81.4 billion) in green energy production projects, including electricity and renewable gases.

This investment is expected to have a multiplier effect, generating new industrial projects for equipment and services required for installations, as well as establishing new green industries across the country.

The revised PNEC 2030 establishes new goals for reducing greenhouse gas emissions in accordance with the Basic Climate Law.

This new objective represents more than double the initial plan.

The key focus areas for renewable energy expansion include hydrogen, solar, and wind energy.

The country intends to revise its National Hydrogen Strategy, aiming to more than double the expected capacity of electrolyzers from 2.5 GW to 5.5 GW by 2030. This expansion is expected to contribute to European supply security while decarbonizing national industries, attracting new industries producing green hydrogen derivatives, and facilitating green hydrogen exports to the European Union (EU).

The EU has proposed a detailed new framework for green hydrogen producers within the EU and from other countries exporting to the region to ensure it is produced using renewable electricity.

Portugal also plans to strengthen its commitment to solar photovoltaics, including decentralized production through renewable energy communities, ensuring a diverse energy mix.

For offshore wind power, the country intends to launch auctions corresponding to a capacity of 10 GW by 2030, ensuring a stable electrical system and attracting offshore technology investments.

The first auction is scheduled for this year, with a goal of installing at least 2 GW by 2030. The country will also reinforce its onshore wind capacity by improving the framework for upgrading existing wind parks with advanced technology.

The government aims to reduce national greenhouse gas emissions by 55% compared to 2005 levels across various sectors, including energy and industry, residential and service buildings, mobility and transport, agriculture, forestry, and wastewater and waste management.

Portugal plans to develop a National Storage Strategy that includes batteries and water pumping technologies to ensure stability in the electrical system and effectively manage the growing renewable energy incorporation.

In March, the European Investment Bank agreed to lend €450 million (~$485 million) to Portugal-based energy company Redes Energéticas Nacionais for renewable energy integration and upgradation of the transmission network.