Portugal's Cleantech Momentum Building a Decarbonized Industrial Ecosystem
Portugal is actively charting a course towards a decarbonized future with cleantech innovation at its core. The nation is demonstrating significant progress in renewable energy laying a robust foundation for a broader cleantech ecosystem. This transition is driven by ambitious national targets and a supportive policy framework
The pulse of cleantech in Portugal highlights the countrys decarbonisation outlook emphasizing a strong performance in renewables. In 2023 Portugal's installed renewable capacity reached 18.7 GW a 7.4% increase from the previous year. Hydropower and wind power remain dominant but solar PV is experiencing the highest growth. To meet its national energy and climate plan NECP 2030 targets Portugal must further expand its renewable capacity addressing regulatory and investment challenges
The countrys electricity generation is increasingly dominated by renewables reaching a record 70.6% in 2023. Wind power hydropower and solar are the primary contributors significantly reducing reliance on fossil fuels. This shift has not only environmental benefits but also a positive economic impact creating thousands of specialized jobs
The NECP 2030 outlines ambitious goals including a 55% reduction in greenhouse gas GHG emissions by 2030 compared to 2005 levels. Key targets include increasing renewables in gross final consumption to 51% and achieving 93% in electricity generation. Significant advancements are also targeted in solar PV wind power storage and electrolysers reflecting a comprehensive strategy
A crucial element of Portugals cleantech strategy involves developing key sectors and technologies. Green hydrogen sustainable aviation fuels SAF and energy storage are identified as pivotal areas. Energy system integration critical raw materials and agripv are also highlighted for their potential to drive decarbonization and economic growth
While Portugal has made strides scaling other cleantech solutions presents challenges. These include regulatory uncertainty underdeveloped infrastructure high costs and technology readiness issues. For instance the green hydrogen sector requires significant investment in infrastructure for production storage and distribution alongside a clear regulatory framework to foster development
Sustainable aviation fuels are critical for decarbonizing air travel. Portugal has the potential for SAF production leveraging its renewable energy sources and growing green hydrogen capacity. However challenges related to technical studies industry experience high capital investment cost competitiveness feedstock availability and regulatory instability need to be addressed
Energy storage particularly long-duration energy storage LDES and thermal storage is another area of focus. While pumped hydro and batteries are currently dominant expanding into other LDES options is necessary. Grid integration complexity in system management and high capital costs for these technologies require careful planning and investment
Energy system integration and critical raw materials are also vital. Portugal aims to upgrade its electricity grid for smart grid adoption and leverage its reserves of critical raw materials like lithium and tungsten to become a key player in the European supply chain. Agripv offers a dual benefit of renewable energy generation and agricultural optimization though regulatory and technical challenges persist
Overcoming these hurdles requires a multifaceted approach. Key recommendations include establishing a stable regulatory framework fostering a thriving innovation environment through sandboxes and clusters building a robust green industrial ecosystem by prioritizing competitive technologies and ensuring a competitive financial framework with simplified rules and accessible funding
Ultimately Portugal's success in cleantech hinges on sustained industrial growth robust policy support and dedicated financial backing across the entire value chain. By addressing these challenges and capitalizing on its strengths Portugal is well positioned to lead in the transition to a sustainable and decarbonized economy