Portugal is a European leader in renewable energy, with over 70-80% of its electricity generation coming from renewable sources in 2024, primarily wind, hydro, and increasingly solar. The country shut down its last coal-fired plant in 2021, relying on natural gas and imports for the remaining 10-20% of its energy demand.

Portugal is emerging as a European green hydrogen leader, leveraging high solar/wind resources to target 3 GW of production capacity by 2030. Centered on the industrial hub of Sines, key projects include a 100 MW plant at the Galp refinery and major initiatives like MadoquaPower2X, focusing on decarbonizing industry and producing synthetic fuels for export.

In 2025, the government allocated €70 million to 17 projects. The country boasts 14,000 km of gas pipelines ready for hydrogen integration.