Portugal has made significant progress in renewable energy, with renewables accounting for up to 91% of electricity generation in early 2024 . However, this impressive statistic hasn’t translated into lower electricity bills for consumers.
Why Are Electricity Prices Still High?
Several factors contribute to Portugal’s high electricity costs:
Taxation and Levies: Taxes and levies constitute a significant portion of electricity prices. In the second half of 2024, taxes accounted for 25.1% of the total electricity price for household consumers .
Grid Access Tariffs: In 2024, the grid access tariffs increased to €66.2/MWh from €48.1/MWh, impacting end-user prices .
Dependence on Imports: Portugal imports about 20% of its electricity from Spain. A recent suspension of imports due to a grid failure in Spain led to a surge in wholesale electricity prices in Portugal, highlighting the country’s vulnerability.
Renewable Energy Challenges
While Portugal’s investment in renewables is commendable, challenges remain:
Infrastructure Limitations: The country’s infrastructure may not be fully equipped to handle the variability of renewable energy, leading to inefficiencies and higher costs.
Intermittent Supply: Renewable sources like solar and wind are intermittent. Periods of low renewable generation, such as in March 2025, forced greater reliance on thermal power, raising prices .
The Way Forward
To address these issues, Portugal could consider:
- Enhancing Energy Storage: Investing in battery storage solutions can help mitigate the intermittency of renewable sources.
- Diversifying Energy Sources: While renewables are essential, maintaining a balanced energy mix can provide stability during periods of low renewable output.
- Improving Grid Infrastructure: Upgrading the grid can enhance efficiency and reduce losses, potentially lowering costs.
Understanding the complexities behind Portugal’s energy landscape is crucial. While the country leads in renewable energy adoption, addressing the underlying challenges is essential to ensure that consumers reap the benefits through lower electricity bills.
Golden Visa for Green Energy?
In a major shift, Portugal has recently redirected its Golden Visa programme away from real estate and toward renewable energy projects — a move that aligns policy with its climate ambitions.
That’s more than a headline. It’s a real opportunity for forward-thinking investors and developers.
Let’s Talk
If you’re interested in understanding — or investing in — Portugal’s clean energy transition, we can help. At Futurechange, we work with clients across the UK and Portugal to support sustainable energy initiatives, from consultancy to project collaboration.
📩 Get in touch to explore how you can be part of this shift — whether you’re a homeowner, investor, or developer.
Note: The information provided is based on data available up to May 2025. For the most current insights, please refer to official sources and recent publications.
