Portugal: An Energy & Natural Resources (International) Overview

Portugal

The updated Energy and Climate National Plan 2030 was formally approved by Resolution of the Assembly of the Republic No 127/2025 of 10 April. The updated plan sets an ambitious target of 51% renewables as a proportion of gross final energy consumption by 2030, a 55% reduction in greenhouse gas emissions compared to 2005 and a significant increase in energy storage capacity.

Despite the existing scarcity of grid capacity for the installation of new projects, the optimisation of existing power plants through overpowering, repowering and hybridisation solutions continued to attract market attention in 2025. Energy storage also gained significant momentum, with the approval of Order No 1857/2025 establishing a specific procedure for licensing electricity storage facilities using previously allocated injection capacity.

Following the nationwide electricity blackout of April 2025, Portugal initiated an emergency plan focused on enhancing grid resilience and deploying large-scale battery storage systems. In July 2025, the government announced a comprehensive package of 31 measures valued at approximately EUR400 million, including, among others, a EUR137 million investment to modernise grid operations, doubling the number of black start power stations from two to four by January 2026 and launching a battery storage auction for 750 MW capacity.

In the electric mobility sector, a landmark reform was introduced with the publication of the new legal framework for electric mobility, which liberalises the electric mobility market, aligning it with practices in other European countries and with the EU's AFIR Regulation (EU) 2023/1804. Key changes include enabling users to charge their electric vehicles without prior contracts with retailers, mandating electronic payment options and allowing self-consumption from renewable energy sources at charging points.

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

Angola

The year 2025 represented a pivotal period for Angola’s energy sector, consolidating its role as a central pillar for economic and social transformation. Under the Angola Energy 2025 strategic plan, the government accelerated the diversification of the national energy matrix, enhanced supply security, and advanced private sector participation.

Consistent with its commitment to achieve a 70% share of renewables, Angola intensified its investments in solar and hydropower. A major milestone was the inauguration of the largest off-grid photovoltaic (PV) facility in Sub-Saharan Africa, situated in Cazombo, Moxico Province (with over 40,000 solar panels and state-of-the-art storage systems).

New PV plants also entered into operation in the provinces of Huíla and Namibe, collectively contributing 350 MW of installed capacity. The execution of Angola’s first power purchase agreement (PPA) represented another significant development, marking a critical step towards attracting private investment and consolidating investor confidence in the energy sector.

Throughout 2025, Angola advanced the expansion and modernisation of its national energy transmission network, facilitating greater integration of provincial capitals and improving the reliability and efficiency of electricity distribution. At a regional level, Angola’s active participation in Southern African Development Community (SADC) initiatives contributed to enhanced energy security and promoted stronger exchanges among African countries.

The consolidation of regulatory frameworks and the promotion of public-private partnerships (PPPs) remain central to the sector’s continued success. Notably, Law No 6/25 of 23 July 2025 was enacted, ending the state monopoly over energy transmission and transport and permitting private participation by means of public concessions.

Mozambique

Mozambique’s energy transition strategy was approved, with an extended horizon until 2050. The focus continues to be on the implementation of legal reforms, and the adoption in 2026 of a comprehensive Concessions Regulation is expected, which shall operationalise the 2022 Electricity Law and detail the regime applicable to concessions across the generation, storage, transmission, distribution and commercialisation of electricity.

On the utility-scale generation front, several projects are advancing significantly. The African Development Bank approved a USD54 million loan for the 120 MW Namaacha wind farm, where Central Eléctrica de Namaacha holds a long-term generation concession to sell power to Electricidade de Moçambique (EDM) under a 25-year PPA. The 1,500 MW Mphanda Nkuwa hydropower project is also progressing towards financing, with the African Development Bank supporting a credit enhancement facility and partial risk guarantee to de-risk the approximately USD5 billion investment. In the off-grid segment, the Get Fit programme's 25 MW solar PV/battery storage project is expected to see significant developments in 2026, alongside the broader Get.Fit tender for approximately 130 MW of mini-grids.

Mozambique remains actively committed to reforming its energy sector and accelerating private investment, with the National Energy Compact targeting approximately USD8.7 billion in private capital mobilisation by 2030. The financing plan relies on de-risking instruments, multilateral guarantees, concessional resources and the development of climate finance frameworks to position the country as a regional energy hub.

Cabo Verde

Cabo Verde continues its efforts to transition its energy sector, attract significant foreign investment, foster international co-operation and establish PPPs under the National Electricity Masterplan 2018–40.

In 2025, the Palmarejo PV plant was repowered, expanding capacity from 4.4 MWp to 10 MWp using funds from a Portugal–Cabo Verde debt-for-climate swap, a replicable model for climate finance. Cabeólica, S.A. launched a EUR60 million wind farm expansion, adding three 4.5 MW turbines and battery systems in Santiago, São Vicente and Sal, which raised Sal’s renewable share above 40%.

The restructuring of ELECTRA is reshaping Cabo Verde’s energy sector, positioning Operador Nacional do Sistema Elétrico de Cabo Verde (ONSEC) as the transmission system operator and single buyer. Strengthening institutional capacity and capacity development aligned with international standards are essential.

Energy storage agreements lack specific legal frameworks. Battery storage and pumped hydro projects – central to grid stability and aiming for 615 MWh by 2030 – are currently contracted under general law, PPP or development finance templates. As is common in emerging storage markets, investors should expect bespoke contracts and engage policymakers as regulatory frameworks develop.

Cabo Verde requires an estimated USD557 million investment to meet its energy targets by 2030, with up to USD300 million expected from private sources. However, high public debt limits fiscal capacity, making private investment crucial. Given weak local capital markets, most financing must be international, heightening the importance of understanding development finance institutions’ requirements, standards and timelines.

Yet recent financing commitments reflect growing international confidence. Having signed a EUR300 million financing package with the European Union and the European Investment Bank under the EU Global Gateway strategy, with EUR159 million allocated specifically to renewable energy generation, grid infrastructure and storage projects through 2029, Cabo Verde has also benefited from additional financing for the Renewable Energy and Improved Utility Performance Project (REIUP), funded by the World Bank. This project is designed to operationalise a government-backed risk mitigation facility expected to mobilise an additional USD108 million in private capital. The government also signed the Sixth Indicative Cooperation Program last February with Luxembourg (2026–30), which identifies climate action and energy transition among five strategic sectors.

Looking ahead, Cabo Verde’s energy transition depends on sustained implementation and regulatory clarity. The country’s political stability, functional legal system and experience with PPPs are key advantages.

São Tomé and Principe

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

Also worthy of note is that São Tomé and Príncipe approved the construction of a new PV 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, with the lease agreement having been signed in late 2025.

At the 29th Conference of the Parties (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 almost complete electrification of the territory, with virtually the entire population having access to electricity.

In light of the 2016 Paris Agreement, Timor-Leste approved its own nationally determined contribution (NDC), updated for the period 2022–30, establishing a compromise to 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.

In 2025, the Timorese government approved accession to the ASEAN Centre for Energy (ACE), aiming to align its national energy policy with ASEAN strategies – particularly by focusing on renewable energy and sustainable practices. 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 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. Looking ahead to 2026, the maximisation of existing grid connections will remain a key focus through the overpowering, repowering and hybridisation of existing capacity and implementation of storage solutions. The need to ensure security of the grid and resilience to events resulting from the intermittence of renewables (exposed by the blackout that occurred in April 2025) will draw new attention to capacity mechanisms and grid ancillary services.

The severe flooding events in early 2026 highlighted the need for improved water management and dam infrastructure across Portugal. In response, and aiming to strengthen flood control and increase hydro energy production, the government has signalled renewed interest in expanding dam capacity, with tenders for new multipurpose projects expected to move forward.

On the demand side, the electricity grid faces unprecedented pressure from the rapid expansion of data centres. The government has established procedures for the attribution of consumption capacity in high-demand zones, starting with Sines and then expanding to all national territory.

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.