Energy Also Needs to Create Industry

In the last two decades, Portugal has undergone a significant transformation in its energy system.

By Paulo Lopes, in Environment · 07 Nov 2026, 11:01 · 0 Comments

Credits: Unsplash; Author: @rasmusandersen;

The growth of wind, hydroelectric and solar production has made it possible to reduce dependence on fossil fuels in electricity production and to develop relevant skills in a strategic sector for the future of the economy. But, as the energy transition progresses, I believe that the time has come to ask a different question: are we taking sufficient advantage of this transformation to develop a more industrialised, productive and competitive economy? Producing renewable electricity is important, but transforming this capacity into industrial investment, innovation and wealth creation could be even more decisive for the future of Portugal.

For many years, energy policy has focused mainly on diversifying production sources, security of supply and reducing emissions. These objectives remain key, but the international economic context is changing. Energy has once again taken centre stage in industrial investment decisions, particularly in a Europe that is seeking to strengthen its economic autonomy and regain competitiveness vis-à-vis other regions of the world. For many companies, access to electricity under competitive, predictable and secure conditions has become as important a factor as infrastructure, the availability of workers or proximity to markets. Portugal has favourable natural resources, but this advantage will only have a real impact if it is able to respond to the concrete needs of companies.

There is also an important difference between attracting investment to install energy infrastructure and developing an industrial chain associated with this investment. Solar parks, wind projects and new storage solutions mobilise significant capital, but much of the equipment used is produced outside the country. It would not be realistic to argue that Portugal should manufacture all these components. However, we have companies and research institutions with skills in engineering, electronics, software, automation and technological services that could participate more actively in this transformation. The opportunity is not only to install technology, but also to develop our own solutions, create specialised companies and increase exports of products and services with higher added value.

This strategy also requires a new way of looking at our business areas and regional development. The industrial parks of the future cannot be evaluated only by the availability of land, road access and telecommunications. The ability to connect to the electricity grid, the possibilities of self-consumption, energy efficiency and cost predictability will be increasingly important factors in attracting investment. The Portuguese interior, where numerous renewable projects are located, should also be able to benefit from greater integration between energy production, industrial activity and specialised services. But this transformation does not happen automatically. It requires planning, vocational training, infrastructure and an effective articulation between companies, municipalities and educational institutions.

Portugal therefore needs to bring its energy policy closer to the industrial strategy. It is not enough to announce new investments in renewable production capacity if we continue to face difficulties in grid connections, licensing processes or in creating conditions to install new production units. It is also not enough to measure the success of the energy transition by the megawatts installed or by the percentage of renewable electricity consumed. We must start assessing how many companies manage to become more competitive, how many industrial investments are attracted, what technologies we develop and how much economic value effectively remains in the country.

The energy transition represents an opportunity that Portugal should not limit to electricity production. It can help modernise industry, boost exports, attract investment and create new economic opportunities in different regions. But this requires an integrated vision, capable of transforming our natural resources into a lasting productive advantage. For years, we have invested to change the way we produce energy. Now we need to take the next step and use that energy to transform what our economy can produce.