November 20, 2021 marked a decisive moment in the national energy history.

With the closure of the Pego Thermal Power Plant in Abrantes, Portugal officially stopped producing electricity from coal — the most polluting fossil fuel on the planet.

The end of an era: farewell to the Pego Plant

After nearly three decades of operation, the Pego Plant exhausted its coal stock and definitively ceased producing energy through the burning of this fuel.

In operation since 1993, the plant had been one of the country’s main sources of thermal energy for years.
Its closure represents not only the end of an industrial phase but also the beginning of a new energy era — cleaner, more efficient, and sustainable.

Portugal advances the energy transition

For the environmental association ZERO, this is a symbolic and concrete step in the fight against climate change.
The phase-out of coal was scheduled for 2030, but Portugal brought the target forward by nearly a decade.

"While celebrating this progress, the country must also plan for a fair and sustainable transition, ensuring new pathways towards carbon neutrality by 2050," emphasizes ZERO.

With this closure, Portugal becomes one of the first countries in the world to stop using coal for electricity generation, reinforcing its role as an environmental leader in the European Union.

From Sines to Pego: the path to decarbonization.

It is worth noting that the Sines Thermal Power Plant closed in January 2021.
Together, the two plants were responsible for about 4% of the carbon dioxide emissions recorded in Portugal over the past decade.

Its closure results in a significant reduction in national emissions, consolidating the country’s commitment to the goals of the Paris Agreement and the National Energy and Climate Plan (PNEC 2030).

And now? The challenge of a just transition.

The end of operations at the Pego plant raises a new question:
which energies will replace coal?

Among the options being considered is the use of biomass, a solution that, according to ZERO, is not truly sustainable, as it "goes against the goals of carbon retention in forests and does not provide a significant advantage over other alternatives."

The future of the station is expected to involve cleaner and more innovative renewable energies, leveraging the existing infrastructure for connection to the electrical grid.

The future: green hydrogen and new technologies.

The Minister of Environment revealed that industrial and energy projects are already planned for the site, including:

• Green hydrogen production through electrolyzers;
• Renewable energy installations and renewable gases;
• Manufacturing of small electric vehicles and associated technological equipment.

These investments represent the conversion of an outdated industrial hub into an energy innovation center, aligned with the sustainable future that Portugal aspires to.

A global milestone

Portugal's decision to eliminate coal was highlighted at COP26, where several countries continued to resist phasing out this fuel. Portugal, on the other hand, reaffirmed its commitment to ending oil and gas exploration and eliminating subsidies for fossil fuels, strengthening its position as a leader in responsible energy transition.