Market Trends of Portugal Wind Energy Industry
Onshore Segment to Dominate the Market
- The onshore segment is poised to dominate the wind energy market in Portugal due to several key factors. Firstly, onshore wind farms are generally more cost-effective to establish and maintain compared to offshore alternatives. The accessibility of onshore locations facilitates easier installation, maintenance, and grid connection, contributing to lower overall project costs.
- Additionally, Portugal's geographic characteristics, including ample onshore wind resources, make it highly conducive for the development of onshore wind projects. The favorable wind conditions on land, particularly in regions like the Alentejo and Centro, present lucrative opportunities for harnessing wind energy efficiently and sustainably.
- Furthermore, the onshore wind segment aligns with Portugal's commitment to renewable energy and sustainability goals. The government's initiatives and policies prioritize the development of onshore wind projects as part of their broader strategy to transition towards cleaner and greener energy sources. This strategic alignment, coupled with the economic advantages and abundant onshore wind resources, positions the onshore segment as the predominant force driving the growth and dominance of wind energy in Portugal.
- With onshore wind energy capacity reaching 5,430 MW in 2022 in the country, the segment is expected to grow and reach 10,400 MW by 2030 as per its goals set by the Portuguese government, a total investment of USD 32-44 billion euros, which will drive the market's growth.
- With the commissioning and announcements of several wind power projects in Portugal, onshore wind energy will dominate the market during the forecast period. For instance, in May 2023, EDP Renewables announced that it had expanded the capacity at its largest wind farm in Portugal. The Alta da Coutada wind farm has a capacity of 187MW, following the installation of six turbines. They are expected to increase the annual production of the wind farm by 12%.
- Hence, with such development works and targets by the government, the segment is likely to dominate during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Government Policies and Increasing Investments to Drive the Market
- Supportive government policies are expected to be a pivotal driving force behind the growth of the wind energy market in Portugal. The Portuguese government has demonstrated a strong commitment to renewable energy as part of its sustainable development agenda. Through various incentives, subsidies, and favorable regulatory frameworks, authorities are actively promoting the establishment and expansion of wind energy projects. These policies not only encourage investment in the sector but also provide financial and operational support to wind energy developers.
- In July 2023, The government of Portugal announced plans to accelerate the incorporation of renewable energy sources in its electricity generation, aiming to achieve 80% of its energy from renewable sources by 2026.
- The country’s recent plan suggested that renewables will account for 49% of all energy usage, compared to 47% in the previous version of the national plan and an EU target of 32.5%.
- By fostering a conducive environment for the wind energy market, the government aims to diversify the energy mix, reduce dependency on traditional fossil fuels, and contribute to global efforts in combating climate change. The alignment of these supportive policies with Portugal's renewable energy targets creates a conducive landscape for investors and stakeholders, driving the momentum towards a more substantial and sustainable wind energy market in the country.
- According to the Portuguese Renewable Energy Association (APREN), between January 1 and July 31, 2023, 25,139 GWh of electricity were generated in Continental Portugal, from which 69.2 % came from renewable sources, of which 29.03% came from wind, 24.42% from hydro, 8.81% from solar and rest from other sources.
- In December 2022, five Portuguese organizations, namely CBA, COLAB+ATLANTIC, Fórum Oceano, INESC TEC, and WavEC Offshore Renewables, have collaboratively established the OceanACT-Atlantic Lab for Future Technologies. This entity is entrusted with overseeing the Aguçadoura test site and is actively exploring the potential to become the managing body for the Viana do Castelo pilot zone on the north coast. The focus of the lab is on the specialized development, testing, demonstration, and qualification of marine and offshore renewable technologies, signifying a concerted effort to advance innovation and research in this strategic sector.
- Hence, government support and rising investments in renewable energy will drive the wind energy market growth during the forecast period.
