The PPA market in Portugal has shown notable growth in recent years, in line with the country’s energy transition and its goal of achieving carbon neutrality by 2050. In this context, contracts have become essential to secure the purchase of renewable energy, especially solar and wind, on a long-term basis.

In an interview with Energía Estratégica España, Hugo Silva, Business Development Specialist at TreeEnergy, part of the Painhas Group, highlights that “the market has grown rapidly, especially in the solar sector.”

To date, Portugal has around 4.3 GW of solar projects either under development or in operation, “many of which are backed by long-term PPA contracts,” the executive confirms.

Looking ahead, it is expected that the country’s installed renewable capacity will grow significantly, reaching 20 GW by 2030, driven by the demand for green energy from businesses and further boosting these agreements.

One of the main advantages of PPAs in the solar sector is their competitive pricing, similar to the range of €30-45/MWh seen in Spain for the largest volume contracts, while smaller contracts are priced around €55-60/MWh.

According to data from Pexapark, Portugal is one of the countries where prices have increased the most compared to the first quarter of the year, with a 1.6% increase, behind the UK (3.7%) and Spain (1.7%).

The contract durations typically range from 10 to 25 years, with 15 years being the average term that promotes a win-win philosophy for both producers and consumers.

According to Silva, “we have had cases where clients achieve savings of more than 60% on solar energy compared to the price of grid energy,” making it an increasingly popular option for companies looking for stability and sustainability in their energy operations.

In this sense, the executive observes an emerging trend in the PPA market that is highlighting the country in the EU: the creation of Renewable Energy Communities that choose this mechanism to operate.

This model allows several consumers to share the electricity produced by solar installations, which “makes the price even more competitive” and brings clean energy closer to more businesses and individuals. This evolution not only promotes sustainability but also democratizes access to renewable energy sources across the country.