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Where does electricity come from? Generation in Portugal explained
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Where does electricity come from? Generation in Portugal explained

Published on October 16, 2026 · By Cristian Tanase

In short: electricity can be made from the sun, the wind, water, natural gas or biomass. Portugal has no nuclear power plants.

Sun, wind, water and gas: how the electricity you use every day is made, and what self-consumption means.

This is Part 2 of the series on the electricity market. Here we see where it comes from.

The main energy sources

  • Solar: photovoltaic panels turn sunlight into electricity.
  • Wind: the wind turns the blades of large turbines, on land or at sea.
  • Hydro: water from rivers and dams spins machines called turbines.
  • Thermal: natural gas, biomass or other fuels are burned to make heat and, with it, electricity.
  • Storage: batteries and other systems keep energy to use later.

Who produces it and how is it sold?

Generation is open to competition. Producers sell the energy on a wholesale market, where suppliers buy it to resell to customers. We explain that market in Part 6.

What if I want to make my own energy?

You can! It is called self-consumption: you install solar panels on your roof and use the energy they produce. When you produce more than you use, you can feed the surplus into the grid, under the conditions set by law. It is a way to cut your bill and use cleaner energy.

Whatever its origin, the electricity that reaches your socket is exactly the same. What changes is how it was produced and how much that cost.

Related

How the electricity market works in Portugal: a simple guide

From the sun and the wind to the socket at home: the steps that bring electricity to you, in plain words.

The electricity transmission network: what REN does

The motorways of electricity: how energy travels long distances and who makes sure the lights stay on.

Electricity distribution: who brings the power to your home

Substations, meters and faults: the role of E-REDES and why your distributor does not change when you change supplier.