Portugal Power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Portugal power market is expected to grow at a CAGR of more than 3% in the forecast period of 2021-2026. The country was notably impacted by the COVID-19 pandemic, which resulted in delaying and cancellation of several power related peojects. Factors such as increasing investments in renewable energy are likely to drive the market. The degree of urbanization and electrification is also expected to drive power consumption. On the other hand, the dependency of renewable on weather conditions such as the sun for solar energy and wind for wind energy are expected to restrain the Portugal power energy market.

Key Highlights

• The hydropower segment, due to its highest energy generating capacity in the country held a significant market share, and it is likely to dominate the market.
• Portugal's government has set a target of decreasing greenhouse gas emissions by 89% to 99% by 2050, compared to 2005. This is likely to create several opportunities for Portugal's power market in the future.
• Increasing renewable energy installations and upcoming projects, such as offshore wind farm projects, are likely to drive the Portugal power market.

Key Market Trends

Hydropower Expected to Dominate the Market

• In 2019, out of total electricity generation capacity, hydropower accounted for 37.8% at 7.25 GW. Hydropower generation capacity has witnessed a growth of around 42% from 5.1 GW in 2010 to 7.25 GW in 2019.
• In 2018, Spanish utility Iberdrola announced to build three new dams and power plants in Portugal. The dams are expected to be located on the Tâmega and the Torno rivers of the larger Douro River, which rises in Spain and flows across northern Portugal to the Atlantic Ocean. The projects are expected to have a total capacity of 1158 MW and are likely to start operations by the end of 2023.
• In 2019, Iberdrola, a multinational electric utility company, entered Portugal’s solar market after securing 149 megawatts (MW) of solar projects in the country. The project is likely to be split into two and built in the Algarve and the Tajo Valley regions.
• Therefore, owing to the above points, hydro energy is likely to dominate the Portugal renewable energy market during the forecast period.

Increasing Renewable Energy Installations to Drive the Market

• In Q1 2020, more than 69.9% of the electricity generation in the country was from renewable energy sources, and the remaining was from fossil fuels. The government of Portugal has planned to reduce greenhouse gases emission to 0% by 2050 by installing more renewable energy generation capacity.
• In 2020, the total renewable energy generation plant installed capacity was 14274 megawatts (MW), which was higher than the installation capacity of 2019, 14118 megawatts (MW).
• The Ministry of Environment and the Energy Transition in Portugal had presented the country’s new plan to achieve carbon neutrality by 2050 – “Roteiro para a Neutralidade Carbónica 2050” – that envisages Portugal, covering 100% of its total power demand with renewable energies by 2050, thereby, reducing C02 emissions by between 85% and 99%, when compared to 2005 levels.
• Hence, owing to the above points, increasing renewable energy installations are expected to drive the Portugal renewable energy market during the forecast period.

Competitive Landscape

The Portugal Power market is consolidated, due to a few companies holding a major share of the market. The key players in this market include Acciona SA, Aquila Group, Finerge SA, Iberdrola SA, and Energias de Portugal.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support