Portugal adds 372 MW of solar as grid bottlenecks slow growth

In Portugal, solar panels added 372 MW between December 2025 and May 2026. The additions came in two forms: 201 MW of decentralized generation and 171 MW in centralized solar plants, according to the Portuguese Association of Renewable Energy, APREN. Estimated cumulative solar capacity reached 7.3 GW, using figures from APREN and the International Renewable Energy Agency.

The numbers are beginning to reshape the electricity system. In July, solar technology led Portugal’s electricity production for the first time, APREN policy coordinator Susana Serôdio told pv magazine. Across mainland Portugal, renewables accounted for 75.0% of electricity generated during the first seven months of 2026. The average price on the Iberian electricity market, MIBEL, was €57.30/MWh between January and July, a 10.0% decrease from the same period in 2025.

The constraint is no longer simply whether Portugal can attract renewable projects. Licensing processes take five to seven years, while insufficient grid capacity makes it harder to connect new plants. There have also been no new capacity auctions since 2022. APREN says the CESE energy-sector tax represents a total burden of around 35% of companies’ profits, adding pressure to investment decisions.

The next wave is expected to combine technologies. Around 80% of new projects under construction are hybrid projects that bring together different renewable sources and use existing grid connection points. Storage is also moving up the agenda: Portugal’s national energy and climate plan targets 3 GW of batteries and 3.9 GW of pumped hydro by 2030, compared with around 20 MW of installed batteries and 2.8 GW of pumped hydro at the end of last year.

So what changes, concretely? More renewable generation is already helping lower wholesale electricity prices, but Portugal risks leaving projects—and their investment—stuck in the queue. APREN estimates around €60 billion in blocked investment intentions. Unlocking that pipeline will depend on reducing licensing times to under three years, modernizing transmission grids, deploying large-scale storage and adjusting market rules, while Portugal still needs an additional 22.2 GW of renewable capacity to meet its 2030 plan.