Portugal is solidifying its reputation as a global leader in renewable energy, setting ambitious targets and consistently exceeding expectations.

The country has fast-tracked its renewable energy objectives, now aiming for 80% of electricity generation to come from renewable sources by 2026—four years ahead of schedule—and reaching full reliance on renewables by 2030, according to Statista.

Additionally, Portugal seeks to ensure that 51% of its total energy consumption originates from renewable sources by 2030. These targets align with a broader national strategy to bolster energy security, reduce dependency on imported fossil fuels, cut greenhouse gas emissions, and achieve climate neutrality by 2050.

Wind and hydropower have played a crucial role in this transformation. Redes Energéticas Nacionais (REN) reported that in 2024, wind farms set a new record by generating 110.4 GWh in a single day, covering 86% of the nation's electricity demand.

Solar power is also integral to Portugal's clean energy ambitions. The solar market is forecast to expand at a compound annual growth rate (CAGR) exceeding 6.5% from 2024 to 2029, driven by rising energy demand, diminishing reliance on fossil fuels, and falling costs of solar photovoltaic (PV) systems.

Portugal’s renewable energy initiatives present compelling opportunities for investors, particularly high-net-worth individuals (HNWIs) and entrepreneurs.

A key investment vehicle is the Golden Visa residency-by-investment programme, which enables individuals to invest €500,000 in approved alternative investment funds. Renewable energy projects, including solar farms and wind power developments, are among the most attractive options.

Golden Visa investors gain residency in Portugal with the benefit of visa-free access to 29 Schengen countries, while only being required to spend seven days per year in the country. After five years, they become eligible to apply for Portuguese citizenship.

Many of these alternative investment funds follow a diversified approach, targeting key industries such as renewable energy, luxury hospitality, healthcare, and technology. This diversification helps mitigate sector-specific risks while maximising high-growth potential.

Paul Sheedy, an international advisor to the Portugal Future Fund, an alternative investment fund approved for Golden Visa in Portugal, commented:

"We have seen time and time again that a blended investment approach can protect against underperforming sectors in a portfolio, giving investors more security and downside protection."

Private investment has also surged in Portugal’s renewable energy sector. As of October 2024, investments in renewable energy and hydrogen projects totalled €40 billion, with projections indicating they will surpass €60 billion by 2030, according to the Portuguese government.

Portugal's favourable conditions, including efficient regulatory processes and over 300 days of sunshine per year, make it an ideal location for renewable energy development.

Beyond energy generation, Portugal is fostering collaborations between universities, businesses, and government entities to enhance innovation and develop a skilled workforce in the renewable energy sector. This holistic approach strengthens national energy infrastructure and ensures sustainable sectoral growth.

The country’s economic outlook is also improving. Recognising Portugal’s economic stability, the Japan Credit Rating Agency (JCR) upgraded the country’s sovereign risk rating from ‘A’ to ‘A+’ in 2025. This upgrade reflects Portugal’s economic diversification, structural reforms, and prudent fiscal policies.

Inflation has also shown a downward trend, with consumer price inflation dropping to 2.5% in January 2025 from 3.0% in December 2024, reinforcing confidence in Portugal’s economic management. The government anticipates GDP growth of 1.8% in 2024 and 2.1% in 2025, further demonstrating its economic resilience.

Paul Stannard, Chairman and Founder of Portugal Investment Owners Club and Portugal Pathways, highlighted the country's growth trajectory:

“Portugal is continuing to see continued and consistent growth in 2025. With the government's goals to make Portugal a more sustainable country in the next few years, investing in alternative investment funds approved for Golden Visa in Portugal that focus on renewable energy is an attractive option for those seeking to align their investment with Portugal's green ambitions.”

He further emphasised the significance of Portugal’s clean energy transition:

“Portugal’s renewable energy is not just about numbers; it’s a testament to the country’s adaptability and forward-thinking approach. The recent peak in hydropower production demonstrates the National Electric System’s commitment to distributing renewable energy efficiently and growing the infrastructure. So, it’s no surprise that investors are seeking to support and benefit from the thriving renewable energy sector.”

By investing in renewable energy as part of their Golden Visa applications, investors can contribute to Portugal’s sustainable future while capitalising on the rapid expansion of this transformative industry.

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About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

About Portugal Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

About Portugal Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.

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