Economic Transformation Portugal’s shift toward renewable energy is crucial for tackling climate change, strengthening energy security, Economic Transformation and advancing sustainable development. This research investigates the socio-economic consequences of renewable energy policies in Portugal between 2014 and 2022, focusing on financial outcomes, employment dynamics, and gender equality. Drawing on financial data from the Orbis database and applying input–output analysis, the study evaluates three companies—EDP, E-Redes, and Logical Gravity—classified under NACE Rev. 2 code 3513. The findings reveal that renewable energy investments enhanced profitability and solvency, particularly during recovery periods, demonstrating the sector’s financial resilience. While larger firms such as EDP saw consistent employment growth, smaller enterprises experienced greater instability, signaling the need for tailored support measures. Despite advancements, gender imbalances and wage disparities remain, highlighting the importance of gender-responsive policies. Overall, this study provides practical guidance for policymakers aiming to promote a fair and sustainable energy transition, Economic Transformation underscoring the significance of strategic investment, workforce adaptation, and inclusiveness.

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1. Introduction

The move toward renewable energy is a key pathway to reducing greenhouse gas emissions, ensuring energy independence, and promoting sustainable growth. In Portugal, renewables have become central to national energy planning, with EDP, the country’s main energy provider, reporting that its electricity supply comes entirely from renewable sources: 34.52% from hydropower, 65.14% from wind, and 0.34% from other renewables. This shift carries notable socio-economic effects, especially Economic Transformation regarding job creation, company performance, and gender equity. The purpose of this study is to analyze the interplay between energy policies, labor market changes, and financial stability in Portugal’s renewable energy sector during the 2014–2022 period. Specifically, it explores the influence of renewable energy policies on employment structures, gender disparities, and the financial health of energy firms. The main research question is: How have renewable energy policies shaped employment, financial stability, and gender equity in Portugal’s renewable energy sector?

A multi-method approach is used, combining data from Orbis and Quadros do Pessoal with input–output analysis to track sectoral developments. This provides a comprehensive understanding of the socio-economic consequences of renewable energy policies. Portugal’s energy transition has been driven by major investments, particularly following the adoption of ambitious climate goals in the 21st century, reshaping the national energy landscape. This transformation offers a valuable opportunity to assess employment, financial stability, and inclusivity outcomes. The study argues that well-designed renewable energy policies foster both economic growth and job creation, though challenges remain. Smaller firms, for instance, struggle with financial vulnerability, while external pressures Economic Transformation—such as the 2008 financial crisis—have slowed development in the past.

This paper adds to existing literature by presenting new insights on gender dynamics and company-level financial performance in Portugal’s renewable energy transition. It captures the impacts of national and global socio-economic shifts between 2014 and 2022, integrating financial analysis, labor market data, and gender considerations for a holistic view. The findings aim to inform policymakers in shaping strategies that simultaneously advance sustainability, Economic Transformation, employment, and equality. Finally, the study highlights the importance of inclusive workforce strategies, particularly in leadership and technical fields, to create a more equitable and sustainable renewable energy sector.

2. Green Transition

Portugal’s path toward a sustainable economy has unfolded in distinct stages, influenced by national policies and broader European strategies. These phases highlight the country’s dedication to renewable energy, the challenges of economic crises, and the recovery efforts that followed austerity. The timeline below outlines the main steps in Portugal’s green transition between 2009 and 2022.

1. Initial Renewable Energy Push (2009–2012).
During the first years of the transition (2009–2012), Portugal achieved notable progress in renewable energy, especially in wind, solar, and hydropower. The government introduced strong incentives to encourage renewable generation, positioning Portugal among the leading European nations in clean energy adoption. This stage saw a significant rise in investment—particularly in 2010 and 2013—which aligned with the country’s goal of expanding renewable energy use. These investments were essential in reshaping Portugal’s energy system toward sustainability.

2. Impact of the Eurozone Crisis and Austerity (2011–2014).
The Eurozone financial crisis that erupted in 2011 severely affected Portugal’s economy, forcing austerity measures that limited public spending. Even with these restrictions, authorities maintained their commitment to renewable development. Still, the recession slowed investment, including in the energy sector. By 2014, however, signs of recovery were emerging, and renewed investments pointed to a gradual return to growth and sustainability. This stage was crucial in sustaining the momentum of Portugal’s renewable energy shift despite financial constraints.

3. Recovery and Energy Modernization (2015–2019).
After exiting the bailout program in 2014, Portugal entered a recovery phase that strengthened its renewable energy agenda. The government introduced the National Energy and Climate Plan (NECP) 2030, which set ambitious targets for efficiency and renewable expansion. Private investment, particularly in energy infrastructure and technological innovation, grew substantially in 2018 and 2019. This period marked a decisive turning point, with Portugal consolidating its reputation as a leader in sustainable energy through modernization and scaling up of renewable systems.

4. Pandemic and Green Recovery (2020).
The COVID-19 pandemic disrupted economies everywhere, yet Portugal turned the crisis into an opportunity to reaffirm its green strategy. Recovery funds from the European Union’s Green Deal provided crucial resources for sustainable growth and efficiency improvements. Despite the global slowdown, both the government and the energy industry continued prioritizing green projects. Investments made in 2020 demonstrated the sector’s resilience, as Portugal emphasized building a sustainable economy in the post-pandemic era.

5. Acceleration through EU and National Plans (2021–2022).
From 2021 to 2022, Portugal entered a faster phase of green transition, boosted by EU-level programs like the Green Deal and domestic initiatives such as the National Recovery and Resilience Plan (PRR). These policies prioritized decarbonization, energy efficiency, and the rapid development of renewable projects as central pillars of recovery. Backed by EU funding, Portugal advanced its green agenda, even though investment dipped slightly in 2021. By 2022, the groundwork was laid for a new cycle of growth in the energy sector, closely aligned with European sustainability targets.

3. Literature Review

The worldwide move toward renewable energy has been shaped by a combination of socio-economic dynamics and geopolitical pressures, offering important lessons for nations such as Portugal. Persistent challenges—including external reliance, limited funding, and policy shortcomings [1,2]—have frequently hindered progress toward sustainability. These issues highlight the necessity of context-specific approaches and targeted assistance to reduce vulnerabilities and ensure fair energy transitions [3,4]. This holds particular significance for Portugal, where smaller firms are exposed to market volatility [5], often struggling to secure financing and cope with complex regulatory frameworks [6]. Such obstacles underline the urgency of providing both financial and strategic support to strengthen the resilience of small- and medium-sized enterprises (SMEs) operating in the renewable energy domain.

At the European level, the Green Deal serves as the EU’s overarching roadmap to achieve carbon neutrality by 2050. Its primary objectives include reducing greenhouse gas emissions, advancing circular economy practices, and promoting sustainable growth. The framework incorporates key initiatives such as the EU Emissions Trading System (ETS), the European Climate Law, and the European Green Recovery Fund, all designed to mobilize investment in renewable technologies [7,8]. A central principle of the Green Deal is the notion of a “just transition,” ensuring that no community or group is marginalized in the process of decarbonization [9,10]. To reinforce economic resilience, the EU has introduced tools like the Taxonomy Regulation and the Green Bond Standard, which are intended to encourage private sector engagement in sustainable projects [11]. Academic literature emphasizes that the Green Deal’s success depends not only on technological progress but also on inclusivity, particularly with respect to gender and social equity in implementation [12,13]. Furthermore, the initiative is increasingly perceived as a driver of cross-sectoral collaboration, linking renewable energy, circular economy models, and social policies in ways that can generate employment and stimulate growth [14]. Nonetheless, critics warn that reconciling environmental targets with economic expansion poses significant difficulties, especially in light of steep upfront investment requirements and uneven technological advancement across member states [15,16]. Some scholars also argue that aligning the Green Deal more closely with global agreements such as the Paris Accord is essential for maintaining the EU’s competitiveness while tackling climate change [17]. Overall, research suggests that although the Green Deal presents major opportunities, its long-term success will require coordinated action from policymakers, businesses, and civil society alike [18].

Financial viability remains a decisive factor in the adoption of renewable energy, as it determines the pace and scope of implementation. Instruments such as sustainable finance and green capital markets can serve as catalysts, channeling resources into low-carbon projects [19,20]. This role is especially evident in developing economies like Kazakhstan, where access to capital and risk management strategies are critical to advancing renewable energy initiatives [21]. The alignment of financial stability with stakeholder interests also demonstrates the value of transparent communication and collaboration in ensuring the durability of such projects [22]. Integrating financial institutions with renewable technologies has the potential to accelerate the transition in emerging economies; however, persistent challenges in the banking sector—such as limited infrastructure and capital access—remain significant barriers [23]. The environmental and economic advantages of renewables are also widely acknowledged. For instance, life cycle costing (LCC) provides a framework for assessing the long-term financial benefits of solar energy investments [24]. Nevertheless, the high initial costs associated with deploying renewable solutions in less developed areas are often perceived as burdensome, even though the long-term sustainability gains are clear [25]. Consequently, achieving a balance between short-term financial pressures and the broader economic and environmental returns of renewable technologies is vital.