How Iberdrola is Expanding Portugal's Solar Energy Sites

Iberdrola has expanded its solar community programme across Portugal with eight new installations under development.

The Spanish energy company now operates 10 projects in total across the country, including two that are already fully operational.

The installations could allow more than 2,000 participants to access renewable electricity through shared generation facilities.

Shared generation infrastructure model

According to Iberdrola, the projects could share around 1.7m kilowatt-hours of renewable energy and could avoid more than 250,000kg of CO₂ emissions annually.

The company positions the model as an alternative for those unable to install their own generation capacity.

Participants can access clean electricity without owning panels or making upfront capital investments, removing traditional barriers to renewable energy adoption.

The solar communities operate by distributing surplus electricity from local arrays.

Businesses and energy producers share excess generation with consumers located within a four-kilometre radius of the installation site.

The arrangement offers producers a solar installation without upfront investment.

The model could reduce energy bills and improve ESG credentials for participating businesses, making renewable energy accessible to a broader range of organisations.

Consumers could achieve average savings of around 30% compared to standard tariffs.

No fees are required to participate in the scheme, ensuring financial accessibility remains a core principle of the programme.

The system targets those prevented from installing their own generation facilities.

Cost barriers, planning constraints or property limitations could block many households and businesses from direct access to renewable energy infrastructure.

Decentralised energy distribution approach

The expansion demonstrates changing approaches to renewable energy distribution among utilities.

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The model moves away from centralised generation and sale towards production and consumption within the same geographic area, creating more resilient local energy networks.

Pedro Torres, Director of Smart Solutions at Iberdrola Clientes Portugal, describes the programme as being transformative for the region.

"Solar communities are transforming the way energy reaches people, making it more accessible and collaborative," he says.

"Through this initiative, Iberdrola aims to accelerate that transformation by promoting innovative solutions that bring generation closer to consumption, strengthen sustainability and deliver tangible benefits to local communities and the energy system as a whole."

The programme sits within the company's wider Portuguese operations. Iberdrola has been active in Portugal since 2004, building a substantial renewable energy portfolio across the country.

Portuguese renewable energy operations

Iberdrola operates what it describes as Portugal's largest renewable energy project.

The Sistema Eletroprodutor do Tâmega consists of a hydroelectric complex comprising the Alto Tâmega, Gouvães and Daivões power plants.

The scheme constitutes an investment of more than US$1.85bn.

The complex could deliver 1,158MW of installed capacity, including 880MW of pumped storage capability.

The company secured seven photovoltaic projects in Portugal's 2019 solar capacity auction. All are now operational with a combined installed capacity of approximately 186.3MW, contributing significantly to the country's renewable energy targets.

In 2024, the company received the highest rating from Fitch Sustainable for preventing 26.7m tonnes of CO₂ emissions the previous year.

The replicability of the solar community model beyond Portugal remains uncertain, though the structure could be adapted to other markets with similar regulatory frameworks.

Pedro's focus centres on expanding the reach of the 10 projects already underway.

The company aims to demonstrate that decentralised energy sharing can deliver measurable value to the communities it serves.