Portugal installs 372 MW of solar in December-May

Portugal added 372 MW of solar between December 2025 and May 2026, according to figures from the Portuguese Association Of Renewable Energy (APREN). The figure comprises 201 MW of decentralized generation and 171 MW of centralized solar power plants, the association added. 

These additions take Portugal’s cumulative solar capacity to an estimated 7.3 GW when accounting for statistics published by the International Renewable Energy Agency (IRENA), which placed the country’s total solar capacity at 6.95 GW by the end of 2025.

Susana Serôdio, APREN’s Policy and Market Intelligence Coordinator, told pv magazine that 2026 has brought historic successes for Portugal’s solar market, particularly in July, when solar technology led the country’s electricity production for the first time.

But she added that the sector is facing substantial regulatory challenges that act as barriers to investment. “Licensing processes remain a critical bottleneck, currently taking between five and seven years in Portugal, a timeframe that far exceeds the acceleration targets set by the [EU’s] RED III Directive,” Serôdio explained.

A lack of new capacity auctions since 2022 and insufficient grid capacity also severely hinders the integration of new projects, Serôdio added, while Portugal remains that only European countries applying a permanent contribution on the net value of renewable energy assets via a tax known as the CESE (Contribuição Extraordinária sobre o Setor Energético). Serôdio said this mechanism results in a total tax burden representative of around 35% of companies’ profits.

Despite these challenges, Serôdio told pv magazine that Portugal’s wider energy market is being driven by robust performance in renewable generation and the resulting market competitiveness. 

“During the first seven months of 2026, renewables accounted for 75.0% of the electricity generated in Portugal Continental, placing the country fourth among analyzed European nations for renewable electricity incorporation,” she explained. “This high share of renewables has directly influenced market prices, bringing the [Iberian electricity market] MIBEL average down to €57.30 ($66.47)/MWh between January and July, which represents a 10.0% decrease compared to the same period in 2025.”

Looking ahead, the future development of renewables in Portugal is expected to be heavily characterized by hybrid projects, Serôdio said, with around 80% of new projects currently under construction combining different renewable sources to take advantage of existing grid connection points.

Storage projects are also expected to play an increasing role in Portugal’s energy sector, with the country’s National Energy and Climate Plan (PNEC) targeting 3 GW of batteries and 3.9 GW of pumped hydro by 2030. APREN’s most recent annual review found around 20 MW of installed batteries and 2.8 GW of pumped hydro deployed in Portugal by the end of last year.

Serôdio said that while the strong performance of renewable generation is forecast to continue throughout the rest of 2026, it remains urgent to accelerate both administrative processes and structural investments in order to maintain growth pace and fully integrate the clean energy produced.

She added that strong investor interest remains, with approximately €60 billion in blocked investment intentions waiting to be deployed, but said reducing licensing times to under three years and reforming taxes like the CESE will be crucial unlocking these investments.

“Unblocking these investments is an essential step to meet the PNEC 2030 targets, which require installing an additional 22.2 GW of renewable capacity,” Serôdio said. “Furthermore, to ensure this trajectory remains sustainable and resilient, it is an absolute priority to accelerate investments in the modernization of electricity transmission grids, the introduction of new large-scale storage solutions, and the flexibilization of market rules.”