This is one of the conclusions of the study “After the Energy Crisis: Policy Responses in the Iberian Peninsula”, prepared by researchers Gonzalo Escribano, Ignacio Urbasos, Ana Fontoura Gouveia, former Secretary of State for Energy, and João Fachada, former technical specialist in her office, the result of a partnership between the Francisco Manuel dos Santos Foundation (FFMS) and the American Brookings Institution.

“Both Portugal and Spain are well positioned to lead the energy transition and capture new opportunities for green industrialisation, thanks to abundant renewable resources, technical capacity and robust institutions,” the study points out.

The authors emphasise that the two Iberian Peninsula countries have set ambitious targets in their National Energy and Climate Plans for 2030 (PNEC/PNIEC), focusing on electrification, green hydrogen and strengthening electricity and hydrogen interconnections with the rest of Europe.

However, they point to crucial challenges, such as the lack of interconnections with the rest of the European Union (EU), bureaucracy in licensing processes, limitations in the electricity grid and the need to involve local communities more in sharing the benefits of energy projects.

According to the authors, strengthening electricity and hydrogen interconnections between the Peninsula and the rest of Europe “is now a geopolitical and climate priority and must be accompanied by industrial and social policies that ensure a fair, competitive and inclusive transition”.

The strengthening of cross-border interconnections was also mentioned by experts as “an urgent need following the blackout that affected the Iberian Peninsula in April this year”, they point out.

The study concludes that Portugal and Spain have growing installed capacity for solar, wind and hydro energy and “can play a central role in the future European green hydrogen market”.

In addition, their liquefied natural gas (LNG) infrastructure “is strategic for the diversification of energy imports, particularly natural gas from the US and Nigeria, while long-term contracts with Russia are expected to be phased out by 2027.”

The study also notes that the Portuguese and Spanish “show strong support for the energy transition, seeing it as an economic opportunity’ and, therefore, ‘this political capital should be leveraged to accelerate the implementation of projects and policies that promote inclusive decarbonisation, taking advantage of regional competitive advantages”.