The IEA regularly conducts peer reviews of the energy policies of its member countries. This process supports energy policy development and encourages the exchange of best practices and experiences to help drive secure and affordable energy transitions.

Portugal’s energy and climate policies push for carbon neutrality, primarily through broad electrification of energy demand and a rapid expansion of renewable electricity generation, along with increased energy efficiency. There is a strong focus on reducing energy import dependency and maintaining affordable access to energy. In the longerterm Portugal is aiming for hydrogen to play a major role in achieving carbon neutrality.

Portugal has made notable progress on decarbonising electricity generation and on electrification of building energy demand, however, the country’s energy mix is still dominated by fossil fuels. The transport, industry and buildings sectors all have considerable work ahead of them to meet Portugal’s targets for increasing the share of renewables, lowering energy demand and reducing emissions. In this report, the IEA provides a range of energy policy recommendations to help Portugal smoothly manage the transition to an efficient and flexible carbon-neutral energy system.