Portugal sets another record for renewables

Autumn in Portugal offers a unique scene of atmospheric entertainment. The gusts of wind from the Atlantic blow powerfully towards the continent and along the streets of the seaside towns, while the rain falls in torrents on the green hills. All this while the ocean waves rise gigantic in walls of water which then frighteningly crash on the cliffs, a few steps from the towns, creating a one-of-a-kind spectacle. In Nazaré the waves are famous throughout the world and can reach a height of 30 meters: the town is considered the Mecca of fearless surfers who challenge their fate, riding waves that can only be reached by jet ski. But what may seem like a spectacle to be enjoyed to some, to others represents the clear solution to Portugal’s energy needs: an exemplary combination of wind, hydroelectric and solar energy.

It is no surprise, therefore, that the country of breathtaking sunsets, from October 31st to November 6th, for 149 consecutive hours, was able to produce an overall quantity of energy from green sources capable of completely satisfying the demand of users industrialists and families across the country. To be precise, in over 6 days, RES (renewable energy sources) generated the figure of 1,102 GWh, exceeding the value of national consumption in the same period by 262 GWh, a surplus that was exported to neighboring Spain. That doesn’t mean the gas systems weren’t working. They were in fact operational and waiting to send energy, if needed, to fill any deficits due to the high variability of renewable sources. But thanks to the heavy rains and insistent wind of those days, it wasn’t necessary. Hugo Costa, the director of EDP Renewables, the renewable energy arm of the state-owned entity – which was privatized in 2012 – also said that the impact on consumers has been positive as “prices have fallen dramatically".

This record beat the previous record which dated back to 2019, when the 100% renewable supply lasted 131 hours. But to meet the climate goals of the Paris Agreement by 2050, Portugal will have to do much more. It will have to continuously support its internal energy network without emitting carbon: no longer for 6 days, but for the whole year. In Europe, a handful of countries already do so, resorting to generous supplies of hydroelectric energy, largely developed well before we started talking about the climate crisis and the latter guided investment decisions for power plants. Other countries, however, obtain excellent results in terms of clean energy, thanks to nuclear power plants. Portugal falls into a different category, that of diversifying and maximizing a mix of RES, without having nuclear capacity or plans to build one.

The Portuguese decarbonisation path began by already making use of some pre-existing hydroelectric plants. But more importantly, in recent years the country has committed to building and operating renewable energy plants quickly and sequentially, once the underlying technologies become more affordable. Promising already in 2016 that the country would eliminate net carbon emissions by 2050, that is, several years before the decision was made at the European Union level. The last coal plants were closed in 2022, leaving (imported) gas as the only fossil support in the national energy mix. The same that various governments have tried to increasingly reduce: according to REN – the company responsible for the transmission of electricity and natural gas in the nation – the use of natural gas for Portugal’s electricity production decreased by 39% on an annual basis in period from January to October 2023. This brought total gas consumption to its lowest level since 2006, accounting for only 21% of total consumption.

In essence, rather than focusing and depending primarily on wind, water or sun, Portugal has been able to integrate them into a balanced portfolio, finding ways to make them more complementary. Portuguese power companies are currently planning to build new offshore wind farms, as well as upgrade old onshore plants to improve their performance, as well as massively expand existing solar power plants. This is why gray skies in Portugal do not harm overall renewable energy production at all, as they might in California or Hawaii.

Autumn in Portugal offers a unique scene of atmospheric entertainment. The gusts of wind from the Atlantic blow powerfully towards the continent and along the streets of the seaside towns, while the rain falls in torrents on the green hills. All this while the ocean waves rise gigantic in walls of water which then frighteningly crash on the cliffs, a few steps from the towns, creating a one-of-a-kind spectacle. In Nazaré the waves are famous throughout the world and can reach a height of 30 meters: the town is considered the Mecca of fearless surfers who challenge their fate, riding waves that can only be reached by jet ski. But what may seem like a spectacle to be enjoyed to some, to others represents the clear solution to Portugal’s energy needs: an exemplary combination of wind, hydroelectric and solar energy.

It is no surprise, therefore, that the country of breathtaking sunsets, from October 31st to November 6th, for 149 consecutive hours, was able to produce an overall quantity of energy from green sources capable of completely satisfying the demand of users industrialists and families across the country. To be precise, in over 6 days, RES (renewable energy sources) generated the figure of 1,102 GWh, exceeding the value of national consumption in the same period by 262 GWh, a surplus that was exported to neighboring Spain. That doesn’t mean the gas systems weren’t working. They were in fact operational and waiting to send energy, if needed, to fill any deficits due to the high variability of renewable sources. But thanks to the heavy rains and insistent wind of those days, it wasn’t necessary. Hugo Costa, the director of EDP Renewables, the renewable energy arm of the state-owned entity – which was privatized in 2012 – also said that the impact on consumers has been positive as “prices have fallen dramatically".

This record beat the previous record which dated back to 2019, when the 100% renewable supply lasted 131 hours. But to meet the climate goals of the Paris Agreement by 2050, Portugal will have to do much more. It will have to continuously support its internal energy network without emitting carbon: no longer for 6 days, but for the whole year. In Europe, a handful of countries already do so, resorting to generous supplies of hydroelectric energy, largely developed well before we started talking about the climate crisis and the latter guided investment decisions for power plants. Other countries, however, obtain excellent results in terms of clean energy, thanks to nuclear power plants. Portugal falls into a different category, that of diversifying and maximizing a mix of RES, without having nuclear capacity or plans to build one.

The Portuguese decarbonisation path began by already making use of some pre-existing hydroelectric plants. But more importantly, in recent years the country has committed to building and operating renewable energy plants quickly and sequentially, once the underlying technologies become more affordable. Promising already in 2016 that the country would eliminate net carbon emissions by 2050, that is, several years before the decision was made at the European Union level. The last coal plants were closed in 2022, leaving (imported) gas as the only fossil support in the national energy mix. The same that various governments have tried to increasingly reduce: according to REN – the company responsible for the transmission of electricity and natural gas in the nation – the use of natural gas for Portugal’s electricity production decreased by 39% on an annual basis in period from January to October 2023. This brought total gas consumption to its lowest level since 2006, accounting for only 21% of total consumption.

In essence, rather than focusing and depending primarily on wind, water or sun, Portugal has been able to integrate them into a balanced portfolio, finding ways to make them more complementary. Portuguese power companies are currently planning to build new offshore wind farms, as well as upgrade old onshore plants to improve their performance, as well as massively expand existing solar power plants. This is why gray skies in Portugal do not harm overall renewable energy production at all, as they might in California or Hawaii, less heating or cooling than in summer and winter.

Nonetheless, Portugal will have to face enormous challenges in the coming years if it wants to fulfill its commitments, in particular to reach the target of 85% renewable energy by 2030. The main ones include the unnerving bureaucracy and slowness of the authorization processes, and the complexity to balance ecological impacts with the need for cleaner energy, considering that the best onshore wind sites have already been occupied. Added to this is the limited availability of batteries for energy storage, which will be increasingly indispensable with the increase in green quotas of electricity production. If this were not enough, a few days ago Prime Minister Antonio Costa resigned due to an ongoing investigation, according to which, together with other government officials, he was involved in a corruption case linked, not even to on purpose, to green hydrogen and lithium projects in the north of the country. As a result, new elections have been called for March 2024. Which will inevitably cause delays on various fronts, from the procurement of new offshore wind farms to energy storage depots, among others.

This does not take away the relevance of the result obtained so far by Portugal. A double applause if you consider that the Iberian country has one of the highest costs per KWh in Europe. This is a reminder that a greener future is and always has been a courageous political decision.