Lisbon, May 8, 2026 (Lusa) – The International Energy Agency (IEA) recommends that Portugal adopt more proactive energy grid planning to keep pace with renewables and electrification, at a stage where electricity is becoming central to energy security.
The recommendation appears in the Energy Policy Review of Portugal 2026, presented on Friday in Lisbon as part of the regular cycle of climate and energy policy analyses for member countries. The agency says that Portugal must accelerate the electrification of end consumption.
The report presents 10 energy policy recommendations for Portugal, including the need to "adopt proactive grid planning", prepare a roadmap for electricity system flexibility, and create integrated planning and remuneration mechanisms for the energy system.
"More integrated and proactive grid planning will be essential," the document states. It advocates for investment in transmission and distribution networks to integrate new production sources, support electrification, and strengthen cross-border energy trade within the Iberian market.
It highlights the importance of improving coordination between transmission and distribution system operators, as well as harmonising national and local planning processes.
In this context, the IEA notes that the Iberian blackout of 28 April 2025 demonstrated the need to maintain system resilience as operational complexity increases.
According to the agency, Portugal is in an "intermediate phase of transition" and must manage two interconnected energy systems evolving in opposite directions: one based on renewables and electrification, which must grow rapidly, and another based on fossil fuels, which must be phased out in an orderly manner.
Furthermore, it says that electricity is becoming "the central pillar of energy security" and the main driver of emission reductions. This shift requires grids, markets, and regulation to evolve to enable a coordinated, affordable, and secure expansion of renewables, electrification, and system flexibility.
The IEA says that Portugal currently maintains one of the lowest carbon intensities in electricity production among the agency's member countries, driven by the rapid growth of solar photovoltaic and the contribution of hydro and wind power.
However, it warns that grid capacity and flexibility "are not keeping pace" with the required speed. Constraints in transmission and distribution networks affect connection timelines for production and demand.
Without a more proactive and forward-looking planning framework, Portugal risks slower renewable deployment, increased production cuts, and delays in electrification. According to the IEA, these factors could increase the cost and difficulty of meeting climate and energy targets.
It says that Portugal should strengthen coordination between the transmission system operator and distribution network operators. It also recommends publishing more detailed information on network constraints and integrating flexibility solutions into planning, alongside conventional electricity grid reinforcements.
Within the recommendations, it suggests preparing a scenario-based roadmap for grid flexibility. This plan would quantify future needs for storage, frequency response, inertia, voltage support, and other capabilities for 2030, 2035, and 2050.
SCR/RYOL // AYLS
Lusa
