Despite the rising share of renewable energy and improvements in energy use, Portugal did not substantially cut its reliance on imported fuels by 2020. The downturn in demand, driven in part by an epidemic, reduced the share of imports to 66 percent. That figure remains well above the European Union average of 57.5 percent. With no extraordinary event to force a drastic change, the National Energy and Climate Plan PENEC aims to lower overall consumption by the end of the decade and cut dependency by 65 percent, while the first offshore wind farms are expected to come online at the same time.
Public statements from the Portuguese government highlight a goal of reaching 10 gigawatts of installed wind capacity by 2030. This target is tied to the Marine Renewable Energy Allocation Plan PAER, which maps seven coastal zones suitable for offshore facilities as a preliminary step toward tenders planned for later this year. If achieved, these 10 GW could account for about 32 percent of Portugal’s electricity generation and open the door to exporting energy sourced from the sea [Source: PAER].
Synergies
Officials emphasize that attaining this capacity would significantly advance energy independence. Portugal would join other nations moving toward energy autonomy and a broader industrial transition. This path, like previous shifts, requires steady decarbonization and a reorientation of the energy mix.
Portugal’s decarbonization roadmap ties offshore renewables to social and economic development, especially within metallurgy, electrical, and electromechanical sectors. These sectors support exports to numerous markets, contributing a substantial international turnover. The range of productive activities in metals and electromechanics highlights their strong impact on stimulating related fields and job creation. The PAER underscores that offshore wind projects will drive the development of new professions, training programs, and incentives, broadening the skill base across the economy.
Because the wind farms sit offshore, there is also a focus on the infrastructure needed to transmit electricity. The question remains: where will the power go once it is produced? In the Viana do Castelo area, future points of connection are being considered at the Fonte de Lima substation and Vila Nova de Famalicão, forming part of the electric corridor toward Galicia. Strengthening cross-border lines on both sides of the Miño River could enable Portugal to export electricity to its neighbor. In 2022, Spain shipped roughly 4,200 GWh to other markets, while only about 200 GWh came from there into the Iberian network [Source: PAER].
Spain and Portugal have engaged in cross-border regulatory steps, with PAER presented to a broad audience including Galicia’s public institutions. The aims touch upon major regional ports and research bodies, and the collaboration includes entities from both sides of the border as well as universities and fisheries representatives. This cross-border framework supports a future where the energy grid becomes more interconnected, enabling a broader supply of renewables while maintaining reliability in the Iberian market.
Recent wind conditions and related market dynamics have driven variations in wholesale electricity prices. After a period of unusually high winds, prices declined substantially, reaching levels not seen since the early part of the year. Movements in gas prices, drought conditions, and storm activity have all influenced daily production and pricing. In the latter part of the month, peak price windows and troughs are monitored as wind output fluctuates and electricity demand evolves with weather patterns and regional activity.