Why is electricity so expensive in Portugal?

Currently, Portugal has one of the highest electricity prices in Europe, with prices for households and small businesses significantly above the EU average. This is partly due to the country's heavy reliance on imported energy, which makes up around 65% of its energy consumption.

How are electricity prices determined in Portugal?

Electricity prices in Portugal are determined by a variety of factors, including the cost of generating electricity, distribution costs, taxes, and government regulations. Currently, Portugal has one of the highest electricity prices in Europe, with prices for households and small businesses significantly above the EU average.

How does the energy sector work in Portugal?

The Portuguese energy sector is liberalized, meaning that you are typically free to choose the electricity (luz) provider of your choice when setting up your new home. However, this choice is a fairly recent development in Portugal. As such, many households in the country are still supplied by EDP, the former state operator.

How much energy does Portugal use a year?

Portugal currently has installed solar capacity of over 2 gigawatts, double what it had at the end of 2020. It consumes around 5 million cubic meters of natural gas annually. Electricity producers use 45%, industry 45% and households 10%. "We are working to minimize or even eliminate risk of negative impacts on industry," Galamba said.

What is the electricity supply in Portugal?

Similar to other European countries, the electricity supply in Portugal is around 220 volts AC with a frequency of 50 hertz. You may come across some areas which still have the old 110-volt supply, although this is not very common. Be aware that a 220-volt current is significantly higher than in some non-European countries.

How do solar panels work in Portugal?

Any excess solar energy that is not used immediately can be fed back into the grid through Portugal's self-consumption scheme. Homeowners receive compensation for the surplus energy they supply. This means even if you’re not at home during the day, your solar panels can still generate value by selling energy back to the grid.