Renewable energy in Portugal was the source for 25.7% of energy consumption in 2013. In 2014, 27% of Portugal's energy needs were supplied by renewable sources. In 2016, 28% of final energy consumption in Portugal came from renewable sources, an increase against the previous year. In 2001, the Portuguese government launched a new energy policy instrument – the E4 Programme, consisting of a set of multiple, diversified measures aimed at promoting a consistent, integrated approach to energy supply and demand. By promoting energy efficiency and the use of renewable energy sources, the programme sought to upgrade the competitiveness of the Portuguese economy and to modernize the country's social fabric, while preserving the environment by reducing gas emissions, especially the carbon dioxide. While from 2002 to 2007 the main priorities were focused on the introduction of :natural gas and liberalization of the energy market, the emphasis shifted for the next 5 years was on energy efficiency and use of endogenous energy. During February 2016, an equivalent to 95% of electricity consumed in Portugal was produced by renewable sources such as biomass, hydropower, wind power and solar power. A total of 4139 GWh was produced by these sources. In May 2016, all of Portugal's electricity was produced renewably for a period of over four days, a landmark achievement for a modern European country. The renewable energy produced in Portugal fell from 55.5% of the total energy produced in 2016 to 41.8% in 2017, due to the drought of 2017, which severely affected the production of hydro electricity. The sources of the renewable energy that was produced in Portugal in 2017 were Wind power with 21.6% of the total, Hydro power with 13.3%, Bioenergy with 5.1%, Solar power with 1.6%, Geothermal energy with 0.4% and a small amount of Wave power in the Azores. 24% of the energy produced in the Azores is geothermal. Portugal committed to close all of the country's coal producing facilities by 2030, making it almost completely reliant on renewable energy in the incoming years. On July 14th 2020, EDP announced it would be closing the country's largest coal-fired power station, in Sines, by January 2021.
Hydro power
The largest hydroelectric power station is at the Alto Lindoso dam, with a capacity of 630 MW. Portugal has about 100 small hydro systems, with a capacity of 256 MW, which produce 815 GWh/year.
A large photovoltaic power project, the Serpa solar power plant, was completed in Portugal, one of Europe's sunniest areas. The 11 megawatt plant covered and employs 52,000 PV panels. The panels are raised 2 metres off the ground allowing grazing to continue. The plant provides enough energy for 8,000 homes and saves an estimated 30,000 tonnes of carbon dioxide emissions per year. Not far from there, Moura Photovoltaic Power Station is under construction. With more than 376,000 solar modules, it will have an installed capacity of 62MWp when finished. The first stage of construction is scheduled for completion in 2008. A solar panel factory is also being built in the city of Moura, where there are plans to build a research lab.
Geothermal power
's main investment for the use of this type of energy is in the Azores. Small scale use of this energy source began in the 1980s in Chaves and S. Pedro do Sul, Continental Portugal providing 3 MWt. In the Azores the use of Geothermal energy is widespread, with production in 8 of the 9 Islands, collectively producing some 235.5 MWt. In 2003, 25% of the electricity consumed in São Miguel was produced by geothermal energy.
Wave power
was the world's first commercial wave farm when it opened on 23 September 2008. It was located three miles offshore near Póvoa de Varzim north of Porto. The farm used three Pelamiswave energy converters to convert the motion of the ocean surface waves into electricity. The wave farm was shut down in November 2008, just over two months after the official opening.