Portugal’s Renewable Energy Boom Backed by Golden Visa Investors

With the global race towards a cleaner future, Portugal has emerged as a frontrunner in its transition to clean energy.

The country is fast-tracking its energy transformation, targeting 80% renewable power generation by 2026—four years ahead of schedule—and 100% by 2030, according to Statista.

Additionally, Portugal aims to increase renewables to 51% of total energy consumption by 2030.

These goals are designed to enhance energy security, reduce reliance on fossil fuel imports, cut greenhouse gas emissions, and support climate neutrality by 2050.

According to Redes Energéticas Nacionais (REN), wind and hydropower have performed exceptionally well. Wind farms, for example, produced an astonishing 110.4 GWh in a single day in November 2024, covering 86% of national consumption.

Solar energy is central to Portugal’s renewable strategy. The solar market is projected to grow at a compound annual growth rate (CAGR) of over 6.5% from 2024 to 2029, driven by rising energy demand, reduced dependence on fossil fuels, and declining solar PV system costs.

Portugal’s ambitious renewable energy goals have created a unique opportunity for investors, high-net-worth individuals (HNWIs), and entrepreneurs.

The Portuguese government is heavily incentivising investments in sustainable energy projects and one way it’s done this is through the Golden Visa residency by investment program.

The Golden Visa program offers investors the opportunity to invest €500,000 in approved funds, with renewable energy investments being one compelling option among diverse fund strategies

These funds focus on projects such as solar farms, wind energy, and other clean technologies.

Investors can gain residency in Portugal, with access to 29 Schengen region countries, while only needing to stay in Portugal for a minimum of seven days per year.

After five years, investors can apply for Portuguese citizenship.

This offers an attractive pathway to residency for affluent families, investors, and HNWIs looking to relocate to Portugal while supporting clean energy initiatives.

According to the European Commission, Portugal’s GDP growth is also forecast to rise from 2.0% in 2024 to 2.3% in 2025, significantly higher than the Eurozone’s projected growth of 0.8% and 1.3% over the same period.

Portugal’s inflation rate is also set to improve, decreasing from 2.3% in 2024 to 1.9% in 2025, compared to the Eurozone’s 2.5% dropping to 2.2%.

Paul Stannard, Chairman and Founder of Portugal Pathways, an organisation that helps affluent families, investors, and entrepreneurs secure Golden Visa residency by investment and offers support with tax, luxury real estate, relocation, and setting up businesses in Portugal, said: “Portugal is continuing to see continued and consistent growth heading into 2025.

‘’With the government's goals to make Portugal a more sustainable country in the next few years, investing in Alternative investment funds approved for Golden Visa in Portugal that focus on renewable energy is an attractive option for those seeking to align their investment with Portugal's green ambitions."

By investing in renewable energy funds for your Golden Visa application, investors not only support Portugal’s transition to a low-carbon economy but also potentially benefit from the growth of this booming sector.”

Stannard adds: “Portugal’s renewable energy is not just about numbers; it’s a testament to the country’s adaptability and forward-thinking approach. The recent peak in hydropower production demonstrates the National Electric System’s commitment to distributing renewable energy efficiently and growing the infrastructure. So, it’s no surprise that investors are seeking to support and benefit from the thriving renewable energy sector.”

As of October 1st 2024, private investment in renewable energy and hydrogen projects are expected to reach €40 billion, according to PortugalBusiness.

According to the Portuguese government, more than 60 billion euros of investment in new renewable projects is expected across the country by 2030.

An efficient planning and approval process, along with 300+ days of sunshine, creates the perfect conditions to thrive in Portugal.

Portugal’s commitment to sustainability extends beyond energy production. The country is fostering collaborations between universities, businesses, and government entities to develop local talent and expertise in renewable energy.

This holistic approach not only strengthens Portugal’s clean energy infrastructure but also ensures a steady pipeline of innovation and skilled professionals to sustain the sector’s growth.

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Learn more about how you can benefit from Portugal's Golden Visa residency-by-investment programme when relocating or investing in Portugal here.

About Portugal Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and aims to continue to do this through its Portugal Investment Owners Club. The organisation also provides expert guidance on luxury property, wealth management, tax optimisation, private healthcare, and bespoke relocation solutions to enhance life and investments in Portugal.