Renewables generate €5.3Bn towards GDP and save Portuguese families €636 per year

A new study in Portugal on the impact of renewable energy on household bills has clearly demonstrated significant savings of over €600 per year for families.

The Portuguese Renewable Energy Association (APREN) presented the “Impact Study of Renewable Energies in Portugal,” on Wednesday, developed by the consulting firm EY-Parthenon, which highlights the growing role of the renewable energy sector as one of the main drivers of the national economy, both present and future, and a key factor in reducing energy costs for families and businesses.

In 2024 alone, the renewables energy sector contributed over €5Bn to Portugal’s GDP with a growth forecast of more than 370% by 2040.

And since 2018 savings of €42Bn in the electricity market, enabling families and individuals to save up to €636 and companies to save over €63,000 per year.

In 2024, renewable energies contributed €5.34Bn to the Gross Domestic Product (GDP), equivalent to more than 1% of the national economy, on par with traditional sectors of the Portuguese economy, such as agri-foods.
This amount reflects the structural transformation in the sector in recent years, particularly wind and hydropower, responsible for more than 80% of the direct impact in Portugal.

The study points to a potential growth in the impact on GDP of over 370% by 2040, with the contribution of renewables potentially reaching €32.2Bn per year by then.

This scenario positions the sector as a true economic driver, but depends on the creation of structural conditions, particularly in terms of licensing, investment in networks, and storage capacity.

In addition to the macroeconomic impact, the sector has registered significant progress in key indicators such as employment, skills development, and tax contribution.

The number of jobs in renewable energy has grown by 224% since 2014 and by 121% between 2021 and 2024, reflecting the sector’s rapid expansion in Portugal.

This growth has been accompanied by an increase in wages exceeding the rate of job creation, signalling a growing specialisation and qualification of the workforce, associated with higher value-added activities throughout the chain, from project development to infrastructure operation and maintenance.

Looking ahead to 2040, employment in the sector is projected to grow by more than 400%, and the average salary by 29%.

Source: EY Parthenon/APREN; Credits: Greenvolt