Portugal Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by End-User (Residential, Commercial and Industrial)
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
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Portugal solar energy market is expected to grow at a CAGR of more than 8 % during the forecast period 2020-2025. The primary drivers of the market include rising energy demand, efforts to reduce the reliance on fossil fuel-based power generation, and declining cost of solar PV and associated systems. Other factors such as increasing demand for renewable energy, rising investments in solar farms, government policies are driving the solar energy market. However, the increasing adoption of an alternate clean power source like the wind is likely to restrain the growth of the wind energy market in the coming years.
The residential segment is expected to witness significant growth in the market during the forecast period.
The auction launched by the Government in June 2019 was the largest energy licensing auction in Portugal, which is expected to boost up the domestic primary energy production in Portugal almost only based on Renewable Energy Sources (RES). This production leads to a decrease in the need to import fossil fuels and, consequently, to reduce Portugal's energy dependence on other foreign markets, as well as decreasing the emission of greenhouse gases, in turn, creates opportunities in the wind energy market in the coming years.
Scope of the report
Portugal solar energy market report includes:
Commercial and Industrial
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Key Market Trends
Residential Segment is Expected to Witness Significant Growth the Market
Solar power is a growing source of clean energy in the Portuguese energy mix. At the end of 2019, solar power had a total installed capacity of 827.6 MW. It represented 2.2% of total power generation in 2019.
Solar is expected to play a leading role in the Portuguese government’s new energy plan, which includes goals of providing 80% of the country’s power demand from renewables by 2030 and 100% by 2050, and electrifying 65% of the economy by 2050.
The increasing adoption of solar photovoltaic in the residential sector is primarily driven by expected savings in electricity costs, the need for an alternative source of electricity, and the desire to mitigate climate change risk.
During the forecast period, the share of the rooftop solar PV is expected to increase, on account of decreasing solar PV costs, supportive government policies for residential solar PV, FIT programs and incentives, and targets set by various governments for solar energy.
The cost reductions from residential rooftop solar PV are driven by continuous technological improvements, including higher solar PV module efficiencies which is expected to boost the usage of solar energy in the residential sector for power utilization.
All the above mentioned factors have been driving the demand for residential solar energy over the study period.
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Increasing Wind Power Deployment to Hinder the Growth of the Market
Portugal is a world leader at integrating generation from wind and has embraced targets of 80% renewable electricity by 2030 and a carbon-neutral economy by 2050.
In Portugal, renewables accounted for 69.9% of the country's total electricity demand in which wind accounted for 25% at the beginning of 2020.
The wind energy sector achieved a maturity status within the Portuguese power system. In 2018, Portuguese wind farms produced 12.7 TWh.
At the end of 2019, wind power installed capacity in Portugal was 5,233 MW. In 2019, wind power represented 27.5% of total electricity generation. Thus, Portugal’s wind energy sector is likely to hinder the market.
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The Portugal solar energy market is moderately consolidated. Some of the key players in the market include Voltalia SA, Iberdrola S.A., SGS SA, Acciona SA, and Gesto Energia S.A.