PORTUGAL: An Introduction to Energy & Natural Resources (International)

Portugal

The update of the Energy and Climate National Plan 2030 was approved on 3 December 2024 by the Parliament and submitted to the EC, setting a new ambitious target of 51% of renewables in the gross final energy consumption by 2030. This plan also includes a significant increase in the energy storage capacity. It is also important to note that Portugal approved an extension until 31 December 2026 of the special measures introduced in 2022 to simplify and accelerate procedures related to renewable energy generation and storage projects.

In respect of offshore wind, following a preliminary phase for non-binding expression of interest in 2023, the eagerly expected first offshore wind public tender in Portugal – initially scheduled for 2024 – was postponed by the government owing to the technical complexity and the absence of necessary approvals for seabed use by offshore wind farms. Also, considering that the Plan for Offshore Renewable Energy was approved by the Portuguese Council of Ministers and is soon to be enacted, the tender for a capacity of 2 GW by 2030 is expected to take place during 2025.

With the aim of promoting bilateral energy contracts (power purchase agreements) and mitigating the respective risks, Portugal also established the bases for the mandatory registration and bilateral energy contracting, in accordance with Regulation (EU) 2024/1747. The registration will be made through a new electronic platform scheduled to come into operation by end of June 2025, pursuant to guidelines to be approved by the end of March 2025.

Despite the existing scarcity of grid capacity for the installation of new projects, the interest in the optimisation of existing power plants through overpowering, repowering and hybridisation solutions will continue to attract market attention during 2025. Also, the Portuguese government has approved investments to extend and develop the National Electricity Transmission Network (Rede Nacional de Transporte de Electricidade, or RNT) by Redes Energéticas Nacionais (REN), the Portuguese electricity and natural gas transmission company.

It is expected that the above-mentioned measures will have a positive effect in the sector, enabling a faster deployment of new renewable energy capacity in Portugal in the coming years.

Angola

2024 saw significant developments in Angolan energy policy, with the approval of several instruments aimed at the reduction of greenhouse gas emissions in the country.

During 2024, Angola approved the National Electromobility Strategy and the proposal for the Biofuels Strategy (2024–50).

In addition, the working group in charge of preparing the Oil and Gas Sector Decarbonization Plan was created. This plan, estimated to be approved during 2025, has the main purpose of implementing measures towards the reduction and elimination of gas flaring by 2030 and for the diversification of the energy mix (with a share of at least 72% of renewable energy generation by 2027).

Considering the long-term goal to reach an electrification rate of 50% by 2027 and universal access to electricity by 2030, the National Interconnection Project was also approved. This project will enable existing production capacity in the northern region to be transferred to other regions of the country, thereby reducing production using fossil fuels and contributing to environmental sustainability – placing particular emphasis on renewable energy solutions.

Also, we note the execution of an agreement providing for the electrical interconnection between Angola, Zambia and the Democratic Republic of Congo through a line of more than 1,200 kilometres. This interconnection project will be funded by private investors and will allow the transmission of surplus Angolan electricity production to the referred countries.

Cabo Verde

Significant foreign investment and international support continues to flow to renewable energy projects in Cabo Verde. On 4 September 2024, the government of Cabo Verde, the EU and the European Investment Bank (EIB) announced the signature of a new financing totalling EUR300 million – with the goal of supporting the strategic digital, port and renewable energy sectors in the country – under the EU’s Global Gateway strategy in Cabo Verde.

Specifically for the energy sector, funding of EUR159 million will be allocated to the design and construction of an electricity generation, grid and storage system until 2029. This investment falls under Cabo Verde’s national electricity master plan 2018–40, which aims to reduce the country’s dependence on expensive and polluting fossil fuels by 2040. The investment will also provide new storage capacity for electricity from renewable sources, enabling redistribution at times of peak demand and thereby ensuring optimal resource management and grid stability.

Also of relevance in 2024 was the Ministry of Industry, Commerce and Energy of Cabo Verde’s launch of the public tender for expressions of interest in the repowering of the Palmarejo Photovoltaic Plant, for the purposes of increasing the capacity of the Island of Santiago plant from 4.4 MWp to 10 MWp. This will be fully financed by the Climate and Environmental Fund, which was created following the protocol for debt conversion into climate and energy transition entered into between Portugal and Cabo Verde.

Both investments will strengthen PPPs and act as stimuli for other private development projects.

Mozambique

The country’s Energy Transition Strategy was approved, with an extended horizon period until 2050. In 2026, it will focus on planning legal reforms, mobilising financing, and implementing the initial stages of certain projects.

As regards foreign investment and international support, we highlight the African Development Bank´s approval of a USD54 million loan for a 120MW onshore wind farm to be developed in Namaacha, 50 kilometres west of Maputo. Central Eléctrica de Namaacha, the project’s special purpose vehicle, has been awarded a 28-year concession contract in 2024 to generate and sell energy to Mozambique’s national electricity company, Electricidade de Moçambique (EDM), which will be the Namaacha wind farm’s sole offtaker under a 25-year power purchase agreement.

Mozambique remains actively devoted to its commitment to reform the energy sector and to accelerate and promote private investment, in order to position itself as a regional energy hub.

São Tomé and Principe

São Tomé and Príncipe continues to support the development of renewable energy projects in the country. During 2024, the final report of the Green Energy Acceleration Plan for São Tomé was published. It an estimate regarding the necessary investments in production capacity to ensure a reliable supply of electricity, respecting the commitments made by São Tomé in terms of carbon dioxide emissions and renewable energy.

Also worthy of note, São Tomé and Príncipe approved the construction of a new photovoltaic plant – to produce 10 MW of energy – in a project worth EUR60.7 million and co-financed by the World Bank, the African Development Bank, and Japan.

At COP29, São Tomé and Príncipe’s Prime Minister asked for more international funding to enable energy transition in the country, reaffirming the nation’s previous commitment to reduce emissions to 27% by 2030.

Timor-Leste

Since its independence, Timor-Leste has achieved an almost complete electrification of the territory. The percentage of the Timorese population with access to an electricity supply has evolved remarkably, from covering around 25% of the population (in 2002) to full coverage – with almost the entire population having access to electricity by 2021.

As regards renewable energy, the Timor-Leste government’s Strategic Development Plan of 2011 provided for a strategic action for developing renewable energies and a rural electrification programme. Moreover, in light of the 2016 Paris Agreement, Timor-Leste approved its own Nationally Determined Contribution (NDC). Updated for the period 2022–30, the revised NDC establishes that the government is bound to:

• unconditionally enact a Renewable Energy Framework Law; and
• scale up investment in renewable energies as a means of reducing diesel consumption, through development funds and co-operation with the private sector.

Despite the ambitions and priorities of the Timorese government, there is still no specific regulatory framework for implementing renewable energies. Thus, the renewable energy potential of Timor-Leste and the private investment in this sector remains unexplored. It is expected that a legal regime for renewable energies may be approved in the near future.

Looking Ahead

Portugal remains active in renewable energy investment.

We continue to observe a growing interest for energy storage solutions and decentralised generation, as well as increasing activity in the optimisation of existing power plants through overpowering, repowering and hybridisation solutions. Despite the delay in the much-anticipated offshore wind public tender (now expected to take place in 20250, the level of interest demonstrated by the market is a promising indicator of Portugal’s offshore energy potential.

In Portuguese-speaking Africa, significant investments and international support have been announced for several countries. Ambitious governmental plans are expected to prepare the ground for sustainable energy transition and decarbonisation targets.