Portugal’s Energy Evolution: Reflecting on 25 Years and Looking Ahead

Over the last twenty-five years, Portugal has undergone an impressive transformation that has reshaped the country’s economy, energy system and international reputation.

What was once a market constrained by limited industrial diversity and high dependency on imported fuels has become a modern, outward-looking economy built on technology, engineering talent and environmental ambition.

Today, Portugal stands as one of Europe’s strongest examples of how consistent investment, sound policy and a skilled workforce can reposition a country for long-term competitiveness.

Here at the Portuguese Chamber of Commerce in the United Kingdom, we see this change reflected in the recent achievements of our members, many of whom are driving innovation across energy, technology, infrastructure and industry in Portugal.

One of our valued Chamber members is UK-based mineral development company Savannah Resources plc.  They are the owner of the Barroso Lithium Project in northern Portugal,  which is Europe’s largest spodumene lithium resource, and an excellent example of how modern companies are contributing to this new economic landscape.

How Portugal has changed in the last 25 years

A quarter of a century ago, Portugal’s energy profile was dominated by fossil fuels and vulnerable to external supply fluctuations. Industrial output was lower, research institutions were less developed and opportunities for high-value employment were limited. The country’s young population often sought careers abroad.

Since then, sustained public and private investment has transformed the national landscape in Portugal. Key developments include:

• The rapid expansion of renewable energy, particularly wind and solar, which has significantly reduced Portugal’s dependence on imported fuels.
• Growth in engineering, digital technologies and environmental sciences, supported by local universities that now rank among Europe’s most respected.
• Improvements in the country’s infrastructure, from modernised transport networks to strengthened energy grids.
• Increased foreign investment in advanced industries, supported by a stable regulatory environment.

These advances have created a skilled workforce, improved productivity and placed Portugal at the centre of Europe’s clean-energy transition.

Savannah as an example of best practice

Savannah’s work in the Barroso region demonstrates how companies can build on Portugal’s progress to deliver economic and social value at a regional level. The company stands out for its high standards of planning, environmental transparency and commitment to long-term regional development.

As part of this process, Savannah has invested heavily in local skills through training programmes, apprenticeships and partnerships with universities, polytechnics and professional schools. Most of the company’s workforce is based in Portugal, with many hailing from the Barroso region itself. These investments ensure that local residents, including young people entering the labour market, gain access to modern careers that remain valuable long after the project’s life cycle.

The Barroso project also has the potential to address long-standing demographic challenges in the north of Portugal. For decades, young people from Barroso and Boticas left to study or work elsewhere, with limited opportunities to return. By creating future-oriented jobs and clear career pathways, Savannah can help attract young people back to their communities and support the revitalisation of a region where more than seventy per cent of local residents are now elderly.

Beyond its internal workforce, a modern mining project also depends heavily on a sophisticated network of suppliers. This creates opportunities for local businesses to develop new services and capabilities that can support Portugal’s wider mining, energy and industrial sectors. Savannah’s approach shows how responsible development can stimulate a broader regional economy.

Portugal’s future role in Europe’s clean-energy value chain

Looking ahead, Portugal is well positioned to play a strategic part in Europe’s clean-energy system. Companies like Savannah will have an important role in shaping that future.

From 2028 onward, the Barroso Lithium Project is expected to supply high-purity lithium concentrate sufficient to support the production of around half a million electric vehicle battery packs each year. Reliable access to critical minerals is vital for Europe as it works towards greater energy security and electrification.

Savannah’s ongoing investment in skills, infrastructure and environmental practice reinforces Portugal’s reputation as a responsible producer within the European market. As its partnerships with European midstream and downstream players expand, Portugal has the potential to evolve from being simply resource-rich to becoming a fully integrated contributor to Europe’s clean-energy value chain.

A view for the future

Portugal’s achievements over the last twenty-five years reflect ambition, resilience and a clear vision for sustainable growth. The country has developed the talent, infrastructure and regulatory stability required to support modern industries, and its energy transition is widely recognised as one of Europe’s most successful.

As we look to the next twenty-five years, we believe Portugal has the opportunity to build on this foundation by deepening its industrial capacity, strengthening regional economies and expanding its leadership in clean-energy technologies.

Some of our Chamber members are playing an essential role in this journey. Savannah, as a strong example of best practice, shows how responsible investment, local partnership and long-term thinking can deliver benefits for both Portugal and Europe.

At the Portuguese Chamber of Commerce here in the UK, we will continue to support our members, promote bilateral collaboration and highlight the potential that Portugal offers in this new era of energy and innovation.