Energy Changes in Portugal

06/12/2018 Energy changes in Portugal
Méditerranée
Revue géographique des pays méditerranéens / Journal of Mediterranean geography
130 | 2018 :
Portugal, a country in transformation
A perspective on sustainable environment
Energy changes in Portugal

An Overview of the Last Century
L'énergie et son évolution au Portugal. Un regard sur le siècle dernier
ADÉLIA N. NUNES
Abstracts
English Français
The objective of this study is to assess the major changes in energy systems in Portugal during the
last century, highlighting the changes that have taken place in recent decades. The relationship
between energy production and consumption, the importance of the energy policy framework in
reducing fossil fuel dependence, the increase in sustainable energy consumption through the use
of renewable energy, and the consequent lowering of greenhouse gas emissions, are also
analysed.
Portugal in recent decades has had a high energy dependence, which increased from 60% at the
beginning of the 1960s to over 80% during the 1990s and the early years of the 21st century.
However the recent focus on renewable energy, mainly hydraulic and wind power generation has
enabled the country to slightly reduce the hydrocarbon imports. Portugal is nowadays considered
one of the most dynamic European countries in terms of development of renewable energy.
L'objectif de cette étude est d'évaluer les changements les plus importants qui ont affecté les
systèmes d'énergie au Portugal au cours du dernier siècle, en particulier dans les dernières
décennies. La relation entre la production d'énergie et la consommation, l'importance de la
politique énergétique pour réduire la dépendance vis-à-vis des combustibles fossiles, la forte
augmentation de la consommation d'énergie grâce à l'utilisation des énergies renouvelables, et la
réduction significative des émissions de gaz à effet de serre sont également analysés.
Le Portugal a connu une forte dépendance énergétique, qui est passée de 60 % au début des
années 1960 à plus de 80 % dans les années 1990 et au début du XXIe siècle. Toutefois, l'accent
mis récemment sur les énergies renouvelables -principalement la production d'énergie
hydraulique et éolienne- a permis au pays de réduire légèrement les importations
d'hydrocarbures. Aujourd'hui, le Portugal est considéré comme l'un des pays européens les plus
dynamiques en matière de développement des énergies renouvelables.
Index terms
Mots-clés : consommation d'énergie, dépendance historique, politique sectorielle
Keywords : Energy consumption, fossil fuels, historical dependence, sector policy
https://journals.openedition.org/mediterranee/10113 1/19
Geographical index : Portugal, Europe, Tagus, Douro, Guadiana, Alentejo, Beja
Full text
This work was funded by the CEGOT (Center for Studies in Geography and Spatial
Planning), that is financed by National Funds through the FCT - Foundation for Science
and Technology- under the project with the reference PEst-OE/SADG/UI4084/2015.
Introduction
1 The way in which societies secure and transform energy has a powerful influence on
their economic prosperity, geographical structure and international relations
(BRIDGE et al., 2012). Energy is a crucial factor in the development of economies
(IEA, 2004 ; WEF, 2012). It has a direct impact on the economic performance of
companies and is also a driving force for social welfare. Major shifts in the roles of
different fuels and energy conversion technologies in the global energy mix have often
underpinned broad social and geographical changes, such as those accompanying the
transition from wood and water power to coal in the 19th century, or from coal to oil in
the 20th century (SMIL, 2010).
2 Firewood was almost the only source of energy that provided heat for populations
and industries until the discovery of fossil fuels (HENRIQUES, 2011). However, the
transition from a vegetable-based low-energy society to a fossil fuel high-energy society
is considered by many authors as a necessary condition, although not sufficient in itself,
for industrialization (WRIGLEY, 1988; MALANIMA, 2006; WRIGLEY, 2010). For
GALES et al., (2007), if energy is a crucial resource for the economy, inasmuch as
economic growth cannot take place without more or less proportionate increases in
energy, its availability may threaten economic performance in the near future.
According to FERREIRA (2007), there is a strong link between energy, the
environment and sustainable development and it is therefore fundamental to maintain
a balance between the use of energy for development and for preservation of the
environment, since excessive use may have negative ecological impacts. For
KRAUSE et al. (1980) the concept of energy transition means a policy for reducing
consumption by improving energy efficiency and replacing fossil fuels, used mainly
since the Industrial Revolution, with renewable energy. In this context, renewable
energy resources would appear to be one of the most efficient and effective solutions
(DINCER, 1999, 2000).
3 The energy challenge in the twenty-first century is to secure the transition towards a
more sustainable energy system characterized by universal access to energy services,
and security and reliability of supply from efficient, low-carbon sources
(BRIDGE et al., 2012). Reducing the use of fossil fuels, increasing energy efficiency and
promoting the use of renewable energy sources are therefore fundamental to achieving
sustainable energy development. These measures were highlighted in the Kyoto
protocol document and reinforced in European Commission (EU) policy documents for
the energy sector (COMMISSION OF THE EUROPEAN COMMUNITIES, 2007;
FERREIRA, 2007). More recently, by 2020 the EU energy strategy aims to reduce its
greenhouse gas emissions by at least 20%, increase the quota of renewable energy to at
least 20% of consumption, and achieve energy savings of 20% or more. All EU countries
must also achieve a 10% quota of renewable energy in their transport sector
(EUROPEAN COMMISSION, 2010).
4 Portugal has few fossil fuel resources and is largely dependent on external sources
(PACHECO and MENDES, 2016). Renewable energy sources such as water, wood and
wind were, therefore, the alternatives to an industrialization process largely based on
fossil fuels. Due to the increasing amount of renewable energy in the generation mix,
complete energy dependence has been declining, especially in the last decade.
5 Renewable energies have benefited from significant support from the Portuguese
government and Portugal is nowadays considered one of the most dynamic European
countries in terms of development of renewable energy (BAILONI and
DESHAIES, 2014).
6 The objective of this study is to assess the major changes in energy systems in
Portugal during the last century in terms of total and per capita consumption, with a
particular focus on the changes that have taken place in recent decades in the
relationship between energy consumption and production. The contribution of the
energy policy framework in reducing fossil fuel dependence and the increase in
sustainable energy consumption, through the use of renewable energy, and the
consequent lowering of greenhouse gas emissions is also discussed. To achieve these
objectives, national and international sources and energy indicators are analyzed.
Study Area
7 The study area consists of the whole of mainland Portugal, which has a surface area
of 89 015 km² and is composed by 18 districts (Figure 1). Located in the extreme
southwest of continental Europe, Portugal is bounded on the west and south by the
Atlantic Ocean.
Fig. 1- Portuguese districts (administrative regions) and spatial variability in altitude and
precipitation
8 The physical environment varies enormously between northern and southern

Portugal. This is largely explained by the different physiographic characteristics. Most
of the country’s mountains lie north of the River Tagus, where the landscape is more
rugged and the slopes are steeper and are intersected by deep valleys (fig. 1). The
highest mountain range is the Serra de Estrela, which runs northwest-southeast in
central Portugal, reaching a maximum height of 1 993 m. The southern part of
continental Portugal consists of two different administrative regions, the Alentejo (the
districts of Portalegre, Évora and Beja) and the Algarve (the district of Faro), which
have different physiographic characteristics. The Alentejo region is mainly
characterized by the vast flat to rolling terrain of the peneplain where the average
altitude is approximately 200 m. The São Mamede mountain ridge, the highest in the
Alentejo region with an altitude of 1 000 m, lies in the extreme north-east. In contrast,
in the far south, the landscape is dominated by the two main Algarve mountain ranges,
Monchique in the west, and Caldeirão in the east.
9 Portugal has a Mediterranean climate, Csb in the north and Csa in the south,
according to the Köppen climate classification. The average annual precipitation varies
between more than 2 000 mm and less than 700 mm in the north-eastern and south-
eastern areas of the country respectively (fig. 1). This pattern is reversed for average
annual temperature, with the highest figures registered in the Alentejo (Beja, Évora and
Portalegre) and Algarve (Faro) regions and the lowest in the north-eastern region (the
districts of Vila Real, Braga and Viana do Castelo). Despite this variability, the country
as a whole reflects the seasonal pattern typical of a Mediterranean climate,
characterized by cool, wet winters and hot, dry summers. All the districts therefore have
a reasonably long dry season, lasting between one and five to six months, increasing
from north to south and from coastal to inland Portugal.
1 - Energy Consumption and Installed

Electrical Capacity in the Past Century
10 Portuguese energy consumption rose by a factor of 15 in 125 years in two distinct
phases (fig. 1). In the first phase, covering around six decades from the end of the
previous century to the end of the Second World War, total primary energy
consumption in Portugal rose by just over 1% a year. In the second phase, after the end
of Second World War, energy consumption rose at a much higher rate of almost 3% a
year. This phase was characterized by the universal expansion of modern energy,
especially oil, in convergence with the European energy system, which was greatly
modified in the post-war years (HENRIQUE & BOROWIECKI, 2014).
Fig. 2 - Consumption of energy in Portugal and energy use per capita, from 1890
Source: Directorate General for Energy and Geology and Madureira, 2005.
11 The trend for energy use per capita was similar to energy consumption (fig. 2).
Population growth led to a steady increase in energy consumption per capita, which in
the long term grew by a factor of 6. Until the end of the Second World War the annual
per capita growth was very low (around 0.2%) and energy consumption per capita
remained virtually stable at 100 kg of oil equivalent per capita/year. The enormous
increase in per capita energy therefore took place in the post-war period. Since then,
per capita energy consumption grew at an annual rate of 2.5%, reaching a peak in 2005.
Following this, slight decreases were observed, both in total energy consumption and
energy use per capita.
12 According to HENRIQUES (2011), the Portuguese energy per capita growth is lower
than in other southern European countries, namely Spain and Italy. This may reflect a
different pattern of intensity in the process of industrialization. In fact, Portugal only
doubled its energy consumption after becoming a member of the European Community
in 1986. However, this level of increase was similar to England in 1850, Canada in
1900, and Northern Europe in 1950-1960 (HENRIQUES, 2011).
13 The trend for installed electrical capacity in Portugal is presented in figure 3.
In addition to the marked increase recorded in the second half of the last century, its
structure also changed significantly during this period. The most significant changes
occurred in the 1950s and 1960s, when installed electricity increased more than
fivefold, from 247 to 1 524 MW. According to HENRIQUES (2011), the 1950s and 1960s
were the golden years of hydropower, benefitting from major government investment.
Portugal has considerable hydropower potential, based on the southernmost three of
the four most powerful rivers in the Iberian Peninsula, namely the Tagus, Douro and
Guadiana, which bear half the total volume of the surface water flow in the Peninsula.
Added to this is the abundant rainfall, amounting to 1600-2800 mm in the mountains
in the northwest of the country, as well as in the Serra da Estrela Mountains (central
Portugal). Combined with changes in elevation between the mountain tops and valley
bottoms that often exceed 700 to 800 m, Portugal presents a priori good conditions for
hydropower generation (BAILONI and DESHAIES, 2014).
Fig. 3 ‑ Installed electrical capacity in Portugal since 1915
Source: Directorate General for Energy and Geology and Madureira, 2005.
14 This important hydropower potential has gradually been exploited to provide an
increasing quota of electricity production in the country. Since the beginning of
electrification in the interwar period, Portugal has built many dams to meet its
domestic, industrial and agricultural needs. This effort continued after the Second
World War, so that by the early 1970s hydropower supplied more than three quarters of
the electricity consumed in Portugal. Nevertheless, with the modernization of the
country in the 1980s and 1990s, consumption has more than doubled and several
thermal power plants have been built to meet these new needs.
15 The increasing proportion of fossil fuels in power generation has contributed to the
rise in coal and especially hydrocarbon imports, making Portugal one of the European
countries with the highest energy dependence (about 80% in 2010). In fact, unlike
Spain, Portugal is almost completely devoid of fossil fuel deposits, with the exception of
a small coal basin located in the hinterland of Porto, which never provided more than
10% of the country's consumption and was closed down in 1994 due to lack of
profitability. The country has to import all the coal used in power stations, as well as its
entire oil and gas supplies, mainly from Algeria and Nigeria.
16 In 2000 combustible fuels accounted for the highest share of installed capacity
(57%), followed by hydropower (45%) and other renewable energy sources (3%). By
2015, the installed capacity of combustible fuels and hydropower had fallen to 38% and
33%, respectively. Conversely, the wind power quota increased from less than 1% to
23.7%, whereas solar energy represented around 2%, and other renewable energies
(geothermal, tide and wave) only accounted for 3%. In fact, the boom in wind power
was the main driving force behind the increase in installed electrical capacity
production in Portugal during the first decade of the 21st century (fig. 3).
2 - Energy Consumption in Portugal by

Type of Product and per Sector, and
Historical Dependence
17 Figure 4 shows the evolution of the structure of final energy consumption in Portugal
by type of product. In recent decades, oil has been the dominant final energy product
consumed in Portugal, with a share fluctuating between a maximum of 88% (in 1982)
and around 66% in recent years (2013 and 1014). In fact, this share has been declining
since the end of the 1990s, mainly as a consequence of the growing use of gas, which
currently represents about 13% of final energy consumption, and the exploitation of
renewable resources, representing more than 18% of final energy consumption.
Fig. 4 - Final energy consumption in Portugal by type of product (1971‑2014), in kilotonne

of oil equivalent (Ktoe)
Source: IEA Statistics © OECD/IEA 2014.
Fig. 5 ‑ Total consumption of energy by major sectors (1971-2014), in kilotonne of oil

equivalent (Ktoe)

18 As noted by AMADOR (2010), the structure of final energy consumption by sector is,
inter alia, a reflection of the structure of the economy and its level of development. This
latter factor is related to the type of technologies used in production and the household
consumption profile. Since these are structural aspects of the economy, the sectoral
structure of energy consumption has evolved slowly over the decades. Figure 5 shows
the evolution of this structure within the Portuguese economy since 1970. In the last
four decades the industry and transport sectors each represented around one third of
total final energy consumption. Both sectors revealed a more significant increase from
the middle of the 1980s and a negative trend at the turn of the century. The importance
of the transport sector in final domestic energy consumption not only reflects its
weighting in the economy but mainly the fact that the underlying technology is energy-
intensive. If energy consumption for this sector is broken down by transport type,
further conclusions can be drawn. In fact, within total domestic transport energy
consumption the road sector in Portugal has had by far the highest share, totaling over
95% (AMADOR, 2010).
19 The residential sector is the third-largest consumption sector, with a share of around
15%. The weighting of commerce and public services has increased by around 4% and
nowadays represents more than 7.5% of total energy consumption. The reverse trend
can be observed in agriculture, forestry and fishing, as a consequence of the significant
abandonment of these sectors.
20 Figure 6 shows the evolution of electricity output from fossil fuels and renewable
sources. The fossil fuel share of electricity production has increased considerably in
recent decades–from 20% in 1971 to 80% in 2005. After 2005, renewable energy
increased significantly to around 60% of the electricity supplied. The decrease recorded
in 2015 was mainly due to unfavorable weather conditions (IPMA, 2015).
21 The increase in renewable energy was justified by the need to reduce external
dependence and greenhouse gas emissions. Moreover, Portugal benefits from favorable
climatic and natural conditions, which enables it to take advantage of the hydropower
(BAILONI and DESHAIES, 2014), wind and solar potential to produce electricity.
Fig. 6 ‑ Evolution of electricity output (in %) from fossil fuels and renewable sources
(1971-2015)

22 In recent decades Portugal has had a high energy dependence, which increased from
60% at the beginning of the 1960s to over 80% during the 1990s and the early years of
the 21st century (fig. 7). The recent focus on renewable energy and energy efficiency,
combined with the economic context, has enabled the country to slightly reduce its
dependence to levels below 80%. In 2013, energy dependence stood at 73.5%,
representing a decrease of 4.1% compared to 2012 and 13% compared to 2005, a year
marked by the highest energy dependence in recent years (86.3%).
Fig. 7- Net energy imports (% of energy used)
3 - Renewable Energies (RE) in Portugal:

A National “Plan”
23 Renewables are now established around the world as mainstream sources of energy
(REN21, 2016). Several factors have stimulated the rapid growth of the power sector,
including the improved cost-competitiveness of renewable technologies, dedicated
policy initiatives, better access to financing, energy security and environmental
concerns. Consequently, new markets, both for centralized and distributed renewable
energy, are emerging in all regions.
24 In Portugal a new cycle of investment in renewable energy sources began at the end
of the 1990s (HENRIQUES, 2011) (fig. 8). The reasons were somewhat different from
those which had led the state to invest in large dams at the beginning of the 1950s. Both
policies aimed to replace fossil fuels and reduce external dependence but whereas the
main reason in the 1950s was to boost economic growth through cheap electricity, the
main aim of the 21st century renewable energy policy is to reduce the burden on the
environment. As stated by HENRIQUES (2011), the Portuguese environmental policy is
mainly the product of a common European Energy Policy aiming to mitigate
climate change.
25 The European Union Directive of 2001 (Directive 2001/77/EC), for example,
provides a framework for the development of renewable energies in Europe. In 2005,
Resolution 169/2005 established the energy strategy for Portugal, emphasizing the role
of renewable energy. The Portuguese government based this policy for the energy sector
on three strategic concerns: ensuring a secure supply, stimulating sustainable
development, and promoting national competitiveness. In order to achieve these
objectives, the government proposed measures focused on: increasing renewable
energy quotas, in particular wind energy; reducing the use of fossil fuels and promoting
more efficient technologies and liberalization of the electricity and natural gas sectors.
Directive 2009/28/EC on promoting the use of energy from renewable sources (also
called the “RES Directive”) set a target for using renewable energy sources to supply at
least 20% of EU final energy consumption by 2020. Portugal committed itself to a
target of supplying 31% of final energy consumption from renewable sources by this
date.
26 Within this context, Portugal, like other European countries, has launched an
ambitious energy transition strategy to achieve this goal. Incentive policies have helped
to significantly increase the wind power capacity which, now in 2016, represents
around 40% of the installed renewable power in Portugal (fig. 8). In fact, wind power
capacity more than doubled between 2004 and 2005 and increased on average more
than 10% between 2005 and 2016.
Fig. 8 ‑ Installed capacity from the main renewable sources (in MW)
Source : [http://e2p.inegi.up.pt/].
27 Although wind power is a very dynamic market, hydropower generated by large dams
continued to provide the most of the renewable power capacity and generation (around
50% of the total). At the same time, large dams were retrofitted to increase the
possibility of pumped storage for better management of electricity production.
Photovoltaic, bioenergy and small-scale hydropower remained insignificant renewable
sources (with a share of less than 3%).
28 In 2014, the share of energy from renewable sources in gross final energy
consumption in Portugal reached 27%, a relatively high figure in comparison to the 16%
recorded for the European Union (fig. 9). From 2005, the first year for which data is
available, to 2014 Portugal’s total energy increased by 7.5%, a similar figure to the mean
increase observed for the European Union (EU).
Fig. 9 - Comparative share of renewable energy in gross final energy consumption in EU
countries in 2005 and 2014
Source: Eurostat.
29 According to the latest Eurostat data, Portugal already ranks as the European
country with the fifth-highest weighting for renewable within total electricity output,
with 52.1% of the electricity generated in the country coming from “green” sources in
2014 (fig. 9). In the past decade the electricity derived from RE more than doubled,
whilst the share of renewable energy used in heating and cooling did not indicate any
sizable changes. Conversely, in the transport sector RE only represented 3.4% of the
share in 2014, meaning that oil continues to be the most widely used form of energy in
this sector, currently the highest final energy consumer in Portugal (see fig. 10). In fact,
during 2014 electric vehicles only accounted for 0.08% of all cars sold: out of a total of
172,357 vehicles (including heavy vehicles), only 135 electric cars were sold. The main
reasons for the reduced demand of electric cars are related with their relatively high
price. Besides, the electric fueling stations are still in the development stages and
electric cars are limited by range and speed.
Fig. 10 - Share of renewable energy in electricity, heating and cooling and transport in
Portugal in 2005 and 2014
4 - Spatio-Temporal Variability in RE in
Portugal: Uncertainties in Power
Generation
30 Renewable energy sources are characterized by their spatial and temporal variability,
which is in contrast to fossil fuels (BLASCHKE et al., 2013). In fact, natural energy
flows vary significantly from one location to another, making the techno-economic
performance of renewable energy conversion highly site specific (SIM et al., 2003). As
can be seen in figure 11, the power plants which generate hydropower and wind power
are distributed very irregularly throughout Portugal, mainly due to the availability of
natural resources. Thus, the districts located in the north and center of Portugal
recorded the highest capacity to produce renewable energy, mostly due to the
combination of wind and hydropower plants (fig. 12). Although Beja district is located
in the South, its high capacity to produce renewable energy is related with the Alqueva
dam, the largest artificial lake in Europe, and the “Amareleja Photovoltaic Solar Power
Plant”, with an installed capacity of 46.41 megawatts (MW) built on a plot of 250
hectares, in the “hottest area of Portugal” according to the Portuguese Institute for Sea
and Atmosphere (IPMA).
31 Moreover, renewable energy sources are characterized by a high temporal variability,
mainly due to the inter and intrannual changes in precipitation, wind and insolation. As
an example, most of the annual precipitation is accumulated during the period between
November and April. On average, 42% of the annual precipitation falls in winter, from
December to February, and only 7% in summer, from June to August. Thus, the
contribution of hydroelectricity to the energy mix in Portugal is strongly variable due to
large climate fluctuations. In 2003 it amounted to 33% of the total energy generation
but decreased to 9.7% in 2005 due to an intense drought (CARVALHO et al., 2013).
32 As ACKERMANN et al. (1999) refer, intermittent sources such as precipitation and
wind, as well as solar, tidal and wave energy, require back-up if not grid connections,
whilst high grid penetration may eventually require storage and/or back-up to
guarantee a reliable power supply. Thus, it is difficult to generalize about costs and
potentials.
Fig. 11 ‑ Location of power plants in operation (left: hydropower; center: wind; right:
photovoltaic)
Source : http://e2p.inegi.up.pt/.
Fig. 12 ‑ Spatial variability of installed capacity in the districts of Portugal
Source : http://e2p.inegi.up.pt/.
33 Despite the advances recorded in the last decade, both in terms of production and
consumption of renewables, investment in the renewables sector has decreased
significantly due to the Memorandum of Understanding (MoU) signed in Portugal with
the International Monetary Fund (IMF), the European Union and European Central
Bank (ECB) on May 3, 2011, as part of the bailout package which committed the
Portuguese Government to renegotiating contracts with a view lowering the feed-in
tariff and similarly revising new contracts (PACHECO & MENDES, 2016).
5 - Sustainable Energy: A Key Element

in Sustainable Development
34 Finding solutions for the environmental problems we face today requires potential
long-term action for sustainable development. In this regard, renewable energy
resources appear to be one of the most efficient and effective solutions, which explains
the close link between renewable energy and sustainable development (DINCER, 1999,
2000). Large-scale sustainable energy systems will be necessary in order to
substantially reduce CO2 emissions (LOUND and KEMPTON, 2008). According to the
United Nations Framework Convention on Climate Change (PEA, 2015), the main
greenhouse gas (GHG) in Portugal in 2013 was carbon dioxide (CO2), accounting for
73.2% of total GHG emissions, followed by methane (CH4) at 17.8% and nitrous oxide
(N2O) at 6.5%. Portugal’s energy sector accounted for 70% of the total GHG emissions,
followed by the waste sector (12%), agriculture (10.5%), industrial processes (7.7%) and
solvents (0.3%) (PEA, 2015).
Fig. 13 ‑ CO2 emissions from total fuel combustion
Source : https://www.iea.org/statistics/.
35 CO2 emissions from total fuel combustion increased from 14.4 million tonnes in 1971
to 45 million tonnes in 2013, with an emission peak between 2002 and 2005 of around
60 million tonnes (fig. 13). The decline in emissions since 2005 is the result of a surge
in wind power generation as well as a reduction in economic activity (IEA, 2016),
particularly after 2009. According to the 2007 Portuguese submission to the UN
Framework Convention on Climate Change, in 2005 about 31% of national CO2
emissions were due to public electricity and heat production, highlighting the need to
evaluate the use and integration of low carbon emissions technologies within the
electricity system.
36 In 2008, the National Climate Change Program (PNAC) established and amended
the 2006 PNAC, envisaging an increase in renewable sources to 45% of the share of
electricity production (previously 39%), the setting up of new natural gas combined
cycle power plants (2 160 MW in 2006, boosted to 5 360 MW in 2010), and an increase
in the 5.75% biofuel goal to 10% in 2010, amongst other measures. The GHG emissions
reduction potential from the new 2007 measures is approximately 1 556 kt CO2
(adopted by CME 1/2008).
37 In 2010, Portugal adopted the National Adaptation Climate Change Strategy
(ENAAC, 2010), which aims to raise awareness of climate change, update and make
available scientific knowledge on climate change and its impacts, and strengthen
measures to monitor the effects of climate change.
38 The latest National Action Plan for Energy Efficiency (PNAEE, 2015), comprising a
number of energy-efficiency programs and measures with a 2015 timeline, was recently
replaced by a new National Action Plan for Energy Efficiency (PNAEE, 2016) which was
combined with the National Action Plan for Renewable Energy (PNAER) for 2020. It is
reinforced by the idea that reducing oil dependency reduces the foreign trade deficit as
well as CO2 emissions. Within the framework of the European ’20-20-20’ targets,
Portugal established a general target for 2020 to reduce primary energy consumption
by 25%, together with a specific target for public administration comprising a reduction
of 30%. As part of the plan to use energy from indigenous renewable sources, Portugal
aims to generate 31% of the final gross energy consumption and 10% of energy for
transport from renewable sources at the lowest possible cost to the economy. It also
aims to reduce the nation’s energy dependence and ensure secure supplies by
promoting a balanced energy mix.
39 Portugal has also demonstrated a significant commitment to address the challenge of
climate change and has adopted an ambitious 20% greenhouse gas reduction target,
compared to the 1% increase permitted under the EU-Effort Sharing Decision
(IEA, 2016).
6 - Energy Sector Policy: A Focal Sector

for Portugal
40 The structural plans for the energy sector, such as the National Action Plan for
Energy Efficiency (PNAEE, 2013-2016) and the Strategic Transport Plan, have played
an important role in improving the overall energy performance of the country, whilst
also reducing CO2 emissions from fossil fuels (NACHNAMY et al., 2015). The PNAEE
comprises a number of energy-efficiency programs and measures for the transport,
residential and service sectors, industry and the state.
41 The new government’s political agenda has established energy efficiency as a priority,
providing a new impetus for renewable energy sources, reducing the tariff deficit
through the implementation of new measures to cut energy costs, and promoting
competition in the energy sector. PACHECO and MENDES (2016) categorize the new
political strategy for the Portuguese energy sector under the following six pillars:
i. The affirmation of Portugal as a relevant energy supplier for Europe. This

concerns the physical characteristics of the country, which is already a major
producer of wind energy, and its great potential for producing solar energy, as
the country with the highest number of sunshine hours in the whole of
Europe. Portugal already has periods in which the production of energy from
renewable sources surpasses the country’s energy consumption, especially
during the night when wind production is higher and consumption is lower.
ii. Resuming the strategy of investing in generation from renewable energy
sources. Regarding the resumption of investment in renewable energy, the
objective is to achieve the goal of 40% of energy consumed in the country
generated from renewable sources by 2030. However, the proposed strategy
hinges on the development of renewable energy projects especially designed for
certain types of generation, rather than on the wider promotion of any type of
renewable energies project. It prioritizes certain types of generation: small hydro
generation projects; wind and solar projects producing electricity destined
specifically for other Member States; the installation of small generation projects
in public buildings; boosting the generation of electricity for self-consumption
through the sale of surplus energy to the grid; the pooling of consumers and
micro-generators of renewable energy from plants without special remuneration
regimes; incentives for the use of forest biomass and solar energy to heat water;
iii. Lowering energy prices and the tariff deficit. The third pillar comprises the
production of cheaper energy, thus reducing the tariff deficit, which in 2015 was
around € 5bn. In order to lower the tariff deficit, the Government advocates: (i)
the end of the revision regime for the above-mentioned CMECs, in order to
enhance renewables without the risk of increasing compensation for installed
producers; (ii) taking advantage of the closing of certain thermoelectric plants
(namely the Sines thermoelectric plant) in reducing the cost of generating
electricity; (iii) limiting the remuneration from hydropower energy in drought
years; (iv) renegotiating concessions in the energy sector in order to achieve fair
sharing of risks between the state and the concessionaires; (v) the gradual
transition from the current model of special remuneration for renewables to a
remuneration model based on market prices, eventually combined with green
certificates.
iv. Stimulating competition and competitiveness. In order to promote
competition, the government strategy undertakes to stimulate the emergence of
new market agents, notably energy suppliers, enhance the comparability of
market offers, ensure a single wholesale natural gas market for the Iberian
Peninsula (the MIBGAS), and continue with the unbundling of energy markets,
notably in the oil sector.
v. Promoting energy efficiency. The government strategy also has a strong
commitment to promoting energy efficiency through the following measures:
leveraging the development of smart grids and the installation of smart meters;
rewarding energy efficiency gains in intensive energy-consuming installations;

promoting fuel-switching between companies; improving efficiency patterns for
buildings and fleets; establishing a detailed schedule for the implementation of
energy efficiency measures and binding energy efficiency goals in the public
administration. It also aims to promote electro-mobility through incentives for
the acquisition of electric cars, the introduction of car sharing operators,
expansion of the network of charging points, returning the energy supplied to
electric cars to the grid, and new incentives for logistics companies to replace
conventional cars with electric cars.
vi. Developing a technology cluster in the energy sector. The government
undertakes to encourage the establishment of a solar energy and electro-mobility
cluster in Portugal, similar to the one which exists for wind energy.
Conclusion
42 Portugal made its energy transition from organic to fossil fuels slowly and very late. It
was only towards the end of its post-war golden years, with the arrival of cheap oil, that
it was finally freed from these shackles. The result was a rapid convergence to advanced
levels of energy consumption and intensity, just at the time when more developed
countries were beginning to move in the opposite direction and the world was waking
up to the urgent need to curb this trend (REIS, 2013). Therefore, in recent decades
Portugal’s energy dependence has been high, ranging from 80% to 90%. In 2014 fossil
fuels still accounted for 73.3% of the total primary energy supply, including oil (45.1%),
natural gas (16.4%) and coal (12.7%). However, the focus on renewable energy,
combined with the economic context, has enabled Portugal to make significant
improvements in energy efficiency in the past decade. Some of the impacts observed are
related to: (i) lower energy dependence, from around 88.6% in 2005 to 73.3% in 2014;
(ii) a greater proportion of renewable energy in gross final energy consumption, rising
from 19.5% to 27% between 2005 and 2014; (iii) Portugal’s position as a reference in
the European context in terms of its quota of renewable energy within final gross
energy, having been ranked ninth in 2014 (27%) after Iceland (71.1%), Norway (69.2%),
Sweden (52.6%), Finland (38.7), Latvia (38.7%), Austria (33.1%), Denmark (29,2) and
Croatia (27.9); (iv) a 30% reduction in CO2 emissions from fossil fuels between 2005
and 2014, meaning 19 Mt less of CO2. In fact, the growing contribution of endogenous
renewable sources has produced multiple benefits, including less dependence on
imported fossil fuels and declining carbon dioxide emissions in the electricity sector.
43 Portugal has continued to develop and reform its energy policy and by the year 2020
intends to generate 60% of its electricity from renewable energy sources in order to
satisfy 31% of its final energy consumers. Although the country benefits from favorable
climatic and natural conditions, enabling it to take advantage of hydro, wind and solar
potential to produce electricity, estimates of uncertainties related to climate change are
necessary in order to be able to determine the importance of climate change impacts on
the future power generation from renewable energy sources. For Portugal, all the
observations are consistent with a tendency towards more intense and frequent
extreme weather and climate events, in particular heat waves and droughts.
44 In view of this state, our country should invest in other natural resources. With a long
tradition associated with the sea, as it has almost 1,000 km of coastline on the mainland
alone, the potential available on the coastline to explore ocean and wind energy is a
high resource. A pilot area has been created to pursue this concept and develop offshore
wind energy projects.
45 On the other hand, as biomass resources include agricultural and forestry residues,
landfill gas, municipal solid waste and energy crops which are widely distributed, it has
good potential to provide rural areas with a renewable source of energy. Moreover, the
intensive exploitation of biomass can be very important in controlling wildfires, the
main environmental problem that regularly affects the country.
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List of illustrations
Fig. 1- Portuguese districts (administrative regions) and spatial variability

Title
in altitude and precipitation
http://journals.openedition.org/mediterranee/docannexe/image/10113/img-
URL
1.jpg
File image/jpeg, 1.2M
Title Fig. 2 - Consumption of energy in Portugal and energy use per capita,
from 1890
Credits Source: Directorate General for Energy and Geology and Madureira,
2005.
URL
2.jpg
File image/jpeg, 76k
Title Fig. 3 ‑ Installed electrical capacity in Portugal since 1915
Credits Source: Directorate General for Energy and Geology and Madureira,
2005.
URL
3.png
File image/png, 95k
Fig. 4 - Final energy consumption in Portugal by type of product
Title
(1971‑2014), in kilotonne of oil equivalent (Ktoe)
Credits Source: IEA Statistics © OECD/IEA 2014.
URL
4.png
File image/png, 12k
Fig. 5 ‑ Total consumption of energy by major sectors (1971-2014), in
Title
kilotonne of oil equivalent (Ktoe)
URL http://journals.openedition.org/mediterranee/docannexe/image/10113/img-
5.png
File image/png, 118k
Fig. 6 ‑ Evolution of electricity output (in %) from fossil fuels and
Title
renewable sources (1971-2015)
URL
6.jpg
Title Fig. 7- Net energy imports (% of energy used)
URL
7.png
File image/png, 7.6k
Title Fig. 8 ‑ Installed capacity from the main renewable sources (in MW)
Credits Source : [http://e2p.inegi.up.pt/].
URL
8.png
File image/png, 20k
Title Fig. 9 - Comparative share of renewable energy in gross final energy

consumption in EU countries in 2005 and 2014
Credits Source: Eurostat.
URL
9.png
File image/png, 127k
Fig. 10 - Share of renewable energy in electricity, heating and cooling and
Title
transport in Portugal in 2005 and 2014
10.png
File image/png, 36k
Title Fig. 11 ‑ Location of power plants in operation (left: hydropower; center:

wind; right: photovoltaic)
Credits Source : http://e2p.inegi.up.pt/.
11.jpg
Title Fig. 12 ‑ Spatial variability of installed capacity in the districts of Portugal
Credits Source : http://e2p.inegi.up.pt/.
URL
12.png
File image/png, 33k
Title Fig. 13 ‑ CO2 emissions from total fuel combustion
Credits Source : https://www.iea.org/statistics/.
URL
13.png
File image/png, 19k
References
Electronic reference
Adélia N. Nunes, « Energy changes in Portugal », Méditerranée [Online], 130 | 2018, Online
since 08 November 2018, connection on 06 December 2018. URL :
http://journals.openedition.org/mediterranee/10113 ; DOI : 10.4000/mediterranee.10113
About the author

Adélia N. Nunes
Department of Geography and Tourism, CEGOT, University of Coimbra, Coimbra, Portugal,
adelia.nunes@fl.uc.pt
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06/12/2018 Energy changes in Portugal

Energy changes in Portugal

Geographical index : Portugal, Europe, Tagus, Douro, Guadiana, Alentejo, Beja

8 The physical environment varies enormously between northern and southern

1 - Energy Consumption and Installed

Fig. 3 ‑ Installed electrical capacity in Portugal since 1915

2 - Energy Consumption in Portugal by

Fig. 4 - Final energy consumption in Portugal by type of product (1971‑2014), in kilotonne

Source: IEA Statistics © OECD/IEA 2014.

Fig. 5 ‑ Total consumption of energy by major sectors (1971-2014), in kilotonne of oil

Source: IEA Statistics © OECD/IEA 2014.

Source: IEA Statistics © OECD/IEA 2015.

Fig. 7- Net energy imports (% of energy used)

Source: IEA Statistics © OECD/IEA 2014.

3 - Renewable Energies (RE) in Portugal:

Source: IEA Statistics © OECD/IEA 2014.

Fig. 12 ‑ Spatial variability of installed capacity in the districts of Portugal

5 - Sustainable Energy: A Key Element

Fig. 13 ‑ CO2 emissions from total fuel combustion

6 - Energy Sector Policy: A Focal Sector

i. The affirmation of Portugal as a relevant energy supplier for Europe. This

rewarding energy efficiency gains in intensive energy-consuming installations;

Fig. 1- Portuguese districts (administrative regions) and spatial variability

Title Fig. 9 - Comparative share of renewable energy in gross final energy

Title Fig. 11 ‑ Location of power plants in operation (left: hydropower; center:

About the author

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