Scorching Portuguese Summer Sends Power Bills Soaring for Newcomers

Visitors who arrived in Portugal this summer quickly learned that the postcard-worthy sunshine comes with a hidden price tag: extra kilowatts. As temperatures flirted with record levels, the country’s power grid registered a notable jump in demand, a surprise dip in wind and solar output, and a heavier reliance on imported energy. For foreigners settling here—whether for a sabbatical in Lisbon or a long-term relocation to the Algarve—those dynamics translate into both higher utility bills and fresh questions about the resilience of the national energy system.

Heatwave turns air-conditioners into the main story

The headline figure is simple: electricity use between January and August grew 2.5% compared with the same stretch of 2024, according to REN, Portugal’s grid operator. Dig deeper and the month of August stands out. A string of 37 °C afternoons pushed consumption 3.4% higher year-on-year, making it one of the most power-hungry Augusts on record. That appetite was magnified in coastal cities, where many homes lack traditional insulation and rely on split-unit ACs that guzzle energy during prolonged heatwaves. The surge arrived just as tourists, digital nomads and returning emigrants filled short-term rentals, compounding the load on local distribution lines.

Summer doldrums clip renewable muscle

Portugal likes to brand itself as a clean-energy poster child, yet the sunniest month of the year ironically produced a below-average output from both photovoltaic parks and offshore-grade wind farms. REN’s productivity index shows solar at 0.90 and wind at 0.94—noticeably shy of the historical norm of 1. A stagnant Atlantic breeze and hazy midsummer skies meant renewables covered just 54% of August’s demand, forcing system operators to tap backup sources. Across the full January-to-August window, green power still supplied a respectable 71% of all electricity, but hydro was the unsung hero. Mountain reservoirs, flushed by an unusually wet spring, delivered a capability index of 1.40, offsetting part of the solar-wind shortfall.

Gas turbines and pricey imports fill the gap

When renewable output falters, Portugal fires up combined-cycle gas plants or imports electrons from Spain. Natural-gas burn for electricity jumped a staggering 135% in the first eight months of 2025, catapulting the fuel’s share to 14% of total consumption. Imports contributed another 15%, a figure that exceeded 28% in August alone. Because gas is pegged to volatile global benchmarks, the strategy mushes an environmental setback into an economic one: ERSE, Portugal’s energy regulator, cites import costs as a key lever behind a 2.1% hike in regulated power tariffs this year. Expat households on short-term leases—often defaulted into standard-rate contracts—have felt that bump quickest, especially if landlords pass through variable-rate charges.

How much more will you pay?

An average apartment using 250 kWh a month now faces roughly €1.60 extra on the regulated bill, a modest increase on paper but a bigger bite for properties already stretched by higher rent and cooling expenses. In the free market, suppliers have begun adjusting standing charges to mirror pricier wholesale imports, meaning fixed-price deals signed in 2023 may no longer be the bargain they once seemed. Rural villas dependent on electric boilers are particularly exposed, while small businesses—cafés with multiple fridges, co-working hubs running 24-hour air-conditioning—must weigh whether to shift consumption to “Horas Vazias,” Portugal’s off-peak window between midnight and 7 am.

Reinforcements on the horizon, but not yet in the socket

Facing louder alarms after an Iberian-wide blackout rehearsal in April, the government unveiled a “Plano de Reforço da Segurança do Sistema Elétrico” in July. The blueprint includes a €137 M network upgrade, a doubling of black-start facilities and, crucially, a 750 MVA battery-storage auction slated for early 2026. Until those gigawatts of lithium and pumped hydro are online, REN will lean on cross-border interconnectors, rapid-response gas turbines and demand-side reserves—industrial consumers paid to dial down operations at short notice. All of this aims to keep the lights on during the high-consumption spikes that autumn cold snaps and Christmas tourism invariably bring.

Practical moves for newcomers

No decree forces residents to ration electricity, yet savvy expats can cushion themselves. Installing a smart plug to monitor heavy appliances, enrolling in time-of-use tariffs, or simply closing shutters at noon—an old Iberian habit that blocks sun heat—can shave euros off the invoice. If you are shopping for a new flat, ask whether the building enjoys A-rated insulation and pre-installed solar water heaters; these features matter more than a rooftop pool when power prices trend upward. Finally, remember that Portugal’s energy mix, though greener than most of Europe’s, is still hostage to the weather. The more diverse your own household solutions—think ceiling fans, LED bulbs and maybe a small balcony panel—the less the next heatwave will dictate your budget.