Renewable energy in Portugal was the source for 45% of the country's electricity generation in 2010 - an increase of 28% in 5 years.<1>
In 2001, the Portuguese government launched a new energy policy instrument – the E4 Programme (Energy Efficiency and Endogenous Energies), consisting of a set of multiple, diversified measures aimed at promoting a consistent, integrated approach to energy supply and demand. By promoting energy efficiency and the use of renewable energy (endogenous) sources, the programme seeks to upgrade the competitiveness of the Portuguese economy and to modernize the country’s social fabric, while preserving the environment by reducing gas emissions, especially the carbon dioxide responsible for climate change.<2>
While in the past 5 years the main priorities were focused on the introduction of natural gas (aiming at progressively replacing oil and coal in the energy balance) and liberalization of the energy market (by opening this former state-owned sector to competition and private investment), the emphasis for the next 8-10 years will be put on energy efficiency (supply and demand sides) and use of endogenous (renewable) energy.<2>
Hydro power
The largest hydroelectric power station is at the Alto Lindoso dam, with a capacity of 630 MW. Portugal has about 100 small hydro systems, with a capacity of 256 MW, which produce 815 GWh/year.<3>
Wind power
In March 2007, there was 1,874 MW of wind power generating capacity installed in Portugal, with another 908 MW under construction. The major wind turbine manufacturers in the Portuguese market are Enercon, Vestas and Gamesa.<4>
The 240 MW Alto Minho Wind Farm in the Viana do Castelo district became fully operational in November, 2008.<5> At the time of completion it was Europe's largest on-shore wind farm.<6>
Other major wind farms which are operating, or under construction, include: Arada-Montemuro Wind Farm (112 MW), Gardunha Wind Farm (106 MW), Pinhal Interior Wind Farm (144 MW), Ventominho Wind Farm (240 MW).
Solar power
A large photovoltaic power project, the Serpa solar power plant, has been completed in Portugal, in one of Europe's sunniest areas, at the cost of 58 million euro.<7> The 11 megawatt plant covers 150 acres (0.61 km2) and has 52,000 PV panels. The panels are raised 2 metres off the ground and the area will remain productive grazing land. The plant provides enough energy for 8,000 homes and will save an estimated 30,000 tonnes of carbon dioxide emissions per year.<8><9>
Not far from there, Moura photovoltaic power station is under construction. With more than 376,000 solar modules, it will have an installed capacity of 62MWp when it is finished in 2010. The first stage of construction is scheduled for completion in 2008. A solar panel factory is also being built in the city of Moura, where there are plans to build a research lab.
Geothermal power
Portugal's main investment for the use of this type of energy is in the Azores. There has been a small scale use of this energy source since the 80s in Chaves and S. Pedro do Sul, Continental Portugal providing 3 MWt.
In the Azores the use of Geothermal energy is widespread, with investments in 8 of the 9 Islands, collectively producing some 235.5 MWt. In 2003, 25% of the electricity consumed in São Miguel was produced by geothermal energy.<1>
Wave power
Aguçadoura Wave Farm is the world's first commercial wave farm. It is located three miles (5 km) offshore near Póvoa de Varzim north of Porto. The farm uses three Pelamis wave energy converters to convert the motion of the ocean surface waves into electricity. The farm was officially opened on the 23 September 2008 by the Portuguese minister of the economy.<10><11> The wave farm was shut down two months after the official opening in November 2008.
http://en.wikipedia.org/wiki/Renewable_energy_in_Portugal(Dear mods, Wikipedia has no copyright restrictions.)
This New York Times article was also interesting:
While Portugal’s experience shows that rapid progress is achievable, it also highlights the price of such a transition. Portuguese households have long paid about twice what Americans pay for electricity, and prices have risen 15 percent in the last five years, probably partly because of the renewable energy program, the International Energy Agency says.
Portugal was well poised to be a guinea pig because it has large untapped resources of wind and river power, the two most cost-effective renewable sources. Government officials say the energy transformation required no increase in taxes or public debt, precisely because the new sources of electricity, which require no fuel and produce no emissions, replaced electricity previously produced by buying and burning imported natural gas, coal and oil. By 2014 the renewable energy program will allow Portugal to fully close at least two conventional power plants and reduce the operation of others.
Like some American states, Portugal has for decades generated electricity from hydropower plants on its raging rivers. But new programs combine wind and water: Wind-driven turbines pump water uphill at night, the most blustery period; then the water flows downhill by day, generating electricity, when consumer demand is highest.
Denmark, another country that relies heavily on wind power, frequently imports electricity from its energy-rich neighbor Norway when the wind dies down; by comparison, Portugal’s grid is relatively isolated, although R.E.N. has greatly increased its connection with Spain to allow for energy sharing.
http://www.nytimes.com/2010/08/10/science/earth/10portugal.html