The Portuguese Energy Sector: Its Multiple Aspects and Challenges - A Country Study

Due to the infusion of Foreign Direct Investment (FDI) and European Union policies, Portugal is one of the worlds’ leaders in producing clean renewable energy. In the process, Portugal has reduced the use of more traditional forms of energy, such as oil and coal. In addition, Portugal has diversified among types of clean energy it is producing, based on the variety found in Portugal’s geography. Regions suited for massive solar farms are complementary to regions suited to wind farms, making it most efficient to pursue both strategies simultaneously depending on the locus of energy production. As a result, Portugal is currently “ahead of the curve” as one of the largest producers of clean energy in the European Union. This paper addresses the origins of Portugal’s quest for “clean” energy and the diversification of Portugal’s plans to ignite the use of clean energy in the economy.