IEA Publishes Portugal 2026 Energy Policy Review

The IEA released the Portugal 2026 Energy Policy Review in Lisbon in the week of May 11, 2026. The review covers electricity, gas, transport, buildings, industry, and grid infrastructure and lays out 10 recommendations. Portugal's electricity sector has one of the lowest carbon intensities among IEA member countries.

Solar PV, hydropower, and wind have transformed the sector, driving overall greenhouse gas emissions down 43 percent compared to 2005 levels. "Portugal has built a strong foundation through rapid progress in renewable electricity," said Mary Burce Warlick. " Even so, 82 percent of Portugal's remaining energy-related greenhouse gas emissions come from transport, buildings and industry.

Gas demand in Portugal has already collapsed to levels the grid operator did not expect until the mid-2030s, creating financial pressure on the network as contraction outpaces planning. EVs accounted for 38 percent of new car sales in Portugal in 2025. Yet they cover just 6 percent of the total vehicle fleet because roughly 80 percent of Portuguese vehicle purchases are used cars.

There is currently no meaningful support for used EV adoption in Portugal. com reported that the country has entered a "mid-transition" in which the clean electricity system and the remaining fossil-fuel system are moving in opposite directions, complicating coordination. The IEA credits nearly all of the 43-percent emissions drop since 2005 to the clean-up of the power sector.

Mary Burce Warlick delivered her assessment at the report's launch in Lisbon, where the review's unusually candid tone underscored the need for accelerated action beyond electricity generation. com reported that the electricity transformation has delivered economic payoffs by insulating Portugal from European gas-price volatility.

Wholesale power prices on the Iberian Peninsula have stayed near €60-70 per megawatt-hour while prices in Germany and Italy have repeatedly exceeded €150 per megawatt-hour.