Electricity in Portugal
Portugal has made remarkable progress in its electricity sector over the last two decades, focusing on sustainability and renewable energy sources. The country has moved towards greener energies, reducing its dependence on fossil fuels and significantly increasing its renewable energy production capacity.
Electricity companies in Portugal
The electricity market in Portugal is liberalized, which means that consumers can choose their suppliers.
Electricity production in Portugal
Portugal is at the forefront of renewable energy integration. More than half of the country’s electricity is currently produced from renewable sources. The energy mix is essentially made up of:
- Wind power: Contributes around 25-30% of total electricity.
- Hydroelectric power: historically strong, it contributes around 20-25%.
- Solar energy: A rapidly growing sector, with numerous large-scale photovoltaic plants.
- Fossil fuels: Although it is being phased out, natural gas still serves as a reserve.
The country closed its last coal-fired power station in 2021, taking significant steps towards carbon neutrality. Portugal’s goal is to achieve 80% renewable electricity by 2030 and carbon neutrality by 2050.
Electricity prices in Portugal
The price of electricity in Portugal is influenced by the cost of energy, production capacity, taxes and network tariffs regulated by ERSE. Consumers can choose between fixed, variable or bi-hourly tariffs, with bi-hourly options offering lower rates during off-peak hours. Taxes such as VAT and an audiovisual levy also have an impact on bills.
Portugal’s transition to renewable energies has helped stabilize prices, despite initial investments in infrastructure. Although prices are slightly above the EU average, the country’s commitment to wind, solar and hydroelectric power aims to reduce dependence on fossil fuels and ensure long-term price stability. Consumers can save by comparing suppliers, controlling usage and using energy-efficient appliances.
Choosing an electricity supplier
The main companies include EDP Comercial, Endesa, Iberdrola, Galp and Gold Energy, among many others. When choosing an electricity supplier, here’s what you need to know:
- Fixed tariffs: A constant price per kWh throughout the contract period.
- Variable rate tariffs: Prices fluctuate depending on changes in the market or regulations.
- Two-hour tariffs: Different tariffs between peak and off-peak hours, advantageous if you can schedule energy-intensive tasks during off-peak periods.
- You can freely change supplier to find the best offer.
Understanding your electricity bill
Electricity bills in Portugal usually include:
- Energy consumption (kWh).
- Power (kVA).
- Taxes: Including VAT and the audiovisual tax.
- Grid access fees.
Smart meters and consumption monitoring
Smart meters are being widely installed to help consumers monitor their electricity consumption in real time. Through your supplier’s app or website, you can access consumption data and avoid unexpected bills.
Renewable energy options
Portugal’s commitment to renewable energy has made it easier for consumers to opt for green energy tariffs. Many electricity suppliers offer green tariffs that provide electricity exclusively from renewable energies. In addition, Portugal promotes self-consumption through the installation of solar panels.
Consumers can install solar panels to produce and consume their electricity. Any surplus can be returned to the grid, with the possibility of selling it back to the supplier, albeit at a lower rate.
Portugal encourages citizens to install solar panels and adopt self-consumption. You can benefit from tax incentives and reduced connection processes for smaller installations. If you generate excess electricity, you can sell it back to the grid, reducing your overall costs.
Electric vehicles and charging infrastructures
With Portugal moving towards sustainable transportation, the adoption of electric vehicles (EVs) is on the rise. Many electricity suppliers offer special tariffs to EV owners to optimize charging costs. The country has an expanding network of public charging points for EVs, making electric mobility more accessible.
Consumer rights and support
The National Energy Regulator, ERSE, supervises the electricity sector. It provides guidelines on consumer rights, market practices and dispute resolution.
Switching supplier is simple and without interruption of service. If you have a dispute with a supplier over billing or quality of service, contact their customer service department first. Unresolved issues can be referred to ERSE or the CAC (Consumer Arbitration Center).
Support for vulnerable consumers
Low-income households in Portugal can benefit from a social tariff (Tarifa Social de Energia Eléctrica), which provides a discount on electricity bills. Eligibility is determined on the basis of income levels or receipt of specific social benefits. You can apply through your supplier or directly to ERSE.
As a consumer in Portugal, understanding your electricity options, tariffs and how to manage consumption is crucial to optimizing costs and supporting sustainability. Whether you’re looking for the best supplier, considering green energy options or want to maximize energy efficiency at home, the Portuguese market offers a range of choices.
With a push towards renewable energy and digital services, Portugal is giving consumers the chance to play an active role in their electricity consumption and costs.
If you are considering making specific changes, such as switching supplier, installing solar panels or adopting energy efficiency practices, exploring the incentives and options available will be a good start.
