Portugal closed 2024 with a significant leap in the energy transition. Data disclosed by APREN shows that the installed capacity of renewables grew 8%, supported mainly by new solar power, and this is already reflected in prices, emissions, and opportunities for homes and businesses.
| Short on time? Here’s the gist: |
|---|
| ✅ Growth of 8% in renewable capacity in 2024, with 1,509 MW added and solar energy accounting for 86% of the increase ☀️ |
| ✅ Historic record: 80.4% of the electricity produced came from renewable sources; consumption was supplied 71.5% by “green electricity” ⚡🌿 |
| ✅ Macro savings: less import of fossil fuels estimated at €2.055 billion and electricity by €289 million 💶 |
| ✅ Attention to volatility: increase in hours with null/negative prices and spikes when gas enters; flexibility and storage become essential 🧠🔋 |
Renewable energy installations grow 8%: what really changed in 2024
The 8% increase in installed renewable capacity in 2024 was not just a statistical adjustment. It translates into new plants, new connections to the grid, and new ways to produce and consume energy. APREN identifies the operational start of 1,509 MW as the engine of this advancement, with photovoltaic solar ensuring 86% of this increment, signaling a robust pipeline and grid connection processes that finally gained traction.
The direct effect was felt in generation: total electricity production was 45,637 GWh, and 80.4% of that volume came from renewable sources. This is a record, consolidated by a favorable hydrological year and wind maturity. REN reported that renewables covered 71%–71.5% of consumption, a consistent approach to the trajectory of the PNEC 2030.
Diving into technology, hydropower contributed 31.9% of the total (about 14,542 GWh), wind 31%, and photovoltaic solar 10.7% (approx. 4,898 GWh). Solar growth, although starting from a smaller base, reveals the speed of the learning curve, falling costs, and greater professionalism in promoting and building projects, especially in Alentejo and Ribatejo.
There is also an international context pushing in the same direction. In 2024, the world added over 580–585 GW of renewable capacity, reaching about 4.4 TW accumulated, representing more than 90% of all new global electric power increases. The alignment between Portugal and global trends reinforces investor confidence and the scale of supply chains.
The most immediate result in Portugal was the reduction of reliance on fossil plants. Production from fossil fuels fell by around 49% compared to 2023, with natural gas combined cycle generation declining by 10.7 p.p. This retreat fueled an estimated drop in emissions from the power generation system to 1.82 Mt CO₂, down from 3.6 Mt in 2023, nearly a halving.
Even with increased internal production, the electricity import balance stabilized: about 10,442 GWh in 2024, almost in line with 2023. The maintenance of exchanges is due to Iberian flows and time windows where the generation and consumption profile makes it efficient to import or export, reinforcing the usefulness of interconnection.
Structurally, DGEG points out that between 2014 and 2024, total installed power grew by about 34.9%, with renewables advancing 77.7%. This shows that the movement is not cyclical. It is a persistent transformation, reflected in new habits, technical capabilities, and new business models, such as PPAs and energy communities.
In summary, the leap of 2024 is more than just statistics: it consolidates an ecosystem that combines natural resources, engineering, and finance. And it prepares the ground for the next step: managing renewable abundance well.
Prices and energy bills: structural savings and new volatility
When renewables grow, the country’s bill changes. APREN estimates that renewable production in 2024 avoided imports of fossil fuels worth about €2.055 billion and reduced the need to import electricity by €289 million. These are macro numbers, but they have a direct impact on the trade balance and the cost of living.
In the daily market, more hours with solar and wind generation push prices down, reaching null or even negative values at certain periods. This is excellent for flexible consumers, but creates challenges in compensating assets and revenue predictability. At other times, when the wind drops and the sun sets, gas plants enter and price spikes occur.
How to take advantage of this new pattern? The answer lies in managing when to consume, not just how much. Tariffs with time-of-use pricing, smart charging of electric vehicles, and scheduling equipment like heat pumps become levers for savings. For many households, a small adjustment in habits can save dozens of euros per month.
To make this operational, a simple domestic flexibility plan is worthwhile. Below is a practical roadmap:
- 🔌 Adopt a bi-hourly tariff: concentrate washings and dryings in the cheapest hours.
- 🔋 Schedule the heat pump: heat the hot water tank when the grid is cheaper and cleaner.
- 🚗 Charge the EV at night: use the charger timer for off-peak hours.
- 🌞 If you have photovoltaic, adjust consumption to the sun: cooking, vacuuming, and ironing between 11 AM and 4 PM maximizes self-consumption.
- 📱 Install an energy monitor: visualize peaks and shift non-critical loads.
Households with micro-photovoltaic production gain a second layer of benefit. On days of surplus, selling energy or storing it in a home battery prevents waste and creates resilience. The combination of panels + battery + management smoothes market volatility and provides predictability to the bill.
In a practical narrative, imagine the “Apartment Flores” in Lisbon, with 3.6 kWp of solar for self-consumption and a 5 kWh battery. The residents schedule the hot water heat pump for noon and the EV charging for after midnight. In 12 months, they reduced their purchases from the grid by about 35% and cushioned the spikes. The same pattern scales for homes with larger roofs and better insulation.
For those looking to deepen savings strategies and price signals, there are useful resources that explain the market in a visual and direct manner. Curated content avoids misunderstandings and helps make more informed decisions.
Between structural savings and daily volatility, the message is clear: those who are more flexible pay less and pollute less. The next section takes this logic to industry, where the impact multiplies.
Renewables and industry: from efficient consumption to PPAs that curb costs
The data for 2024 indicates a recovery in industrial consumption in Portugal, with a growth of about 3% between January and October. The backdrop is a more competitive Iberian electricity during hours of high renewable production and a more stable global demand in sectors like ceramics, metalworking, and agri-food. When energy becomes cheaper, industry resumes shifts and expands lines.
Beyond the price effect, predictability matters. This is where PPAs (Power Purchase Agreements) come in: long-term contracts that link factories to renewable parks. With a PPA, a factory in Aveiro can fix part of its electricity costs for 10–15 years, reducing exposure to spikes. In 2024, with the maturation of the solar pipeline, discussions and agreements multiplied, many with delivery starting from 2025–2026.
The transition is not just financial. Decarbonization is increasingly becoming an export passport. Suppliers to global brands face carbon footprint requirements and ESG reporting, and electricity from renewable sources weighs in these metrics. By signing a “green” PPA or investing in self-consumption, a company improves its sustainability score and competitiveness in tenders.
There is also technical innovation. The coupling of storage in industrial installations is beginning to gain traction, especially where load profiles are irregular. A food unit with a peak of refrigeration in the late afternoon can shift part of the ice production to hours of abundant solar energy and discharge later, avoiding the need to contract additional power.
Risks exist and are manageable. Hourly volatility creates opportunities, but also demands control systems and energy literacy. Another concern is the dependence on global equipment chains, still concentrated in Asia. Diversifying suppliers and anticipating realistic timelines is good practice. On the European regulatory front, discussions are ongoing about adjusting the market design to integrate more renewables without penalizing price stability.
A roadmap for SMEs can be simple and effective. First, diagnose the load profile and identify movable loads. Next, study self-consumption on the roof and evaluate PPAs for the remaining component. In parallel, consider a Building Management System (BMS) to automate consumption decisions. Finally, continuous monitoring with clear indicators of cost per product and carbon intensity.
A concrete example: “Cerâmica Atlântica” contracted 30% of its consumption via a solar PPA, installed 800 kWp on the roof, and implemented intelligent control over the kilns. In 12 months, it reduced its bill by 18% and its carbon footprint by 40%, gaining access to new markets in Northern Europe. These gains are replicable, adjusting scale and technology.
For those leading operations, the message is direct: stabilizing energy costs with PPAs and operational flexibility increases margins and robustness. The next step takes these principles to homes, where comfort and efficiency go hand in hand.
Efficient housing: how to align your home with the new renewable wave
The energy transition is not only about large parks. Every home can be a small plant that consumes less, generates more, and manages better. The starting point is to reduce the need: insulation, efficient windows, shading, and controlled ventilation. With optimized demand, the right systems shine: heat pumps for heating and hot water, photovoltaics for self-consumption, and eventually a battery to enhance utilization.
Practical advantages appear right away in daily life. A house with 6–8 kWp of solar and a heat pump can shift water heating to 12–4 PM, reducing purchases from the grid and avoiding spikes. If you add an inertia tank and a 7–10 kWh battery, the house withstands expensive hours with comfort and predictability. The secret lies in control: program, measure, adjust.
Self-consumption, energy communities, and the role of the neighborhood
Not all roofs have sun or space. This is where Energy Communities come in, allowing local sharing of renewable production among neighbors, schools, and businesses. A building in Braga can host panels and share production with the tenants, improving everyone’s bill. In 2024, processes were simplified, and by 2026, scale and maturity of management models are expected.
How to choose power and technology? A rule of thumb: size to cover the base of daytime consumption and then grow with monitoring. Avoid oversizing in the first step. In parallel, an inverter ready for batteries provides future flexibility without replacing equipment. And do not neglect installation quality and commissioning, which ensure actual performance versus promise.
Passive house: the energy not spent is the cheapest
The passive standard teaches that the best energy is the one that is not consumed. Well-designed shading, adequate solar orientation, and thermal mass cut peaks of heat and cold. A renovation that includes external insulation, thermal break windows, and heat recovery ventilation can reduce thermal load by 50–70%. With a lower load, a smaller heat pump meets comfort needs, saving on purchase and bill.
An inspiring case: “Casa do Pinhal” on the central coast, renovated with projected cork, wood-aluminum windows, and high-efficiency heat recovery ventilation. With 5 kWp of photovoltaics and a heat pump with a tank, it achieved very low annual consumption and stable comfort. The investment prioritized thermal enclosure and only then the systems, ensuring solid and lasting results.
To guide choices, independent resources and clear technical comparisons are valuable. Platforms like Ecopassivehouses.pt gather practical guidance and real examples, helping to turn ideas into viable and well-sized projects.
When a house reduces its need and manages the rest intelligently, the grid benefits, the wallet breathes, and comfort becomes predictable. Next, it is essential to look at market design, crucial for the next decade of renewable integration.
Electric market, 2025–2030: integrating abundance with stability
With more hours of low prices and some expensive spikes, the design of the daily and intraday market shows tensions. In 2024, it became clear that exposure to null/negative values will grow on sunny and windy days. At the same time, when the wind drops in the evening, the activation of natural gas creates price steps. Without calibration, asset remuneration can become erratic and investment confidence can suffer.
What solutions are on the table? European regulation discusses adjustments to value flexibility and capacity, reinforcing tools like contracts for differences (CfD) for new power, more liquid reserve/system service markets, and locational network signals. In parallel, storage — batteries and pumped hydro — appears as a pillar to absorb excesses and return energy in critical hours.
The grid must grow in intelligence and muscle. Reinforcements in Iberian interconnection, digitalization of distribution, tariffs that value load shifting, and active participation of consumers form the puzzle. Electric vehicles, when charged in a coordinated manner, can become a system asset, and aggregated home batteries via flexibility operators will help stabilize prices during unfavorable windows.
To guide decisions, the following table summarizes challenges and typical responses discussed in 2024–2026, with expected impact up to the end of the decade:
| 🧩 Challenge | 🛠️ Solution | 📈 Impact by 2026 |
|---|---|---|
| Null/negative prices during solar/wind hours | Expansion of batteries, flexibility tariffs, and energy communities | Greater self-consumption and less wastage of generation |
| Price spikes with entry of natural gas | PPA/CfD contracts and capacity auctions | Cost stability and signal for new investments |
| Congestion in the distribution grid | Reinforcement and digitalization of the grid, locational signal | Less curtailment and integration of projects |
| Dependence on global chains | Diversification of suppliers and technical standardization | More predictable delivery times |
| Low literacy of flexibility | Aggregation platforms and consumer education | Active participation and cost reduction |
The balance between abundance and stability does not happen by chance. It requires clear rules, mature technology, and participation from all: producers, operators, marketers, and consumers. The path of 2024 showed that it is possible to grow quickly, with gains in price and emissions. In 2026, the focus should be on consolidating flexibility mechanisms so that every renewable MWh counts when needed.
To end with a simple and useful gesture: set a concrete goal today — for example, migrate to a bi-hourly tariff and schedule three devices for cheaper times. Small consistent decisions build more efficient homes and a stronger energy system.
Source: sapo.pt
