Rodrigo Costa, CEO and Chairman of the Board of Directors of Portugal’s largest energy infrastructure company, Redes Energéticas Nacionais (REN), is the only Portuguese personality featured on the prestigious 2024 Time100 Climate list. This annual list highlights the most influential leaders in the fight against climate change and referred to Costas’ significant contributions to the renewable energy sector and his leadership in advancing sustainable energy initiatives.
REN is a key player in Portugal’s energy infrastructure, ensuring energy security and reliability while driving the country’s transition to a sustainable future. Through a significant investment in grid modernization and renewable energy transition, including green hydrogen projects, REN supports Portugal’s decarbonization goals and economic growth.
Recently, the company announced an ambitious plan to invest €1.69 billion in the Portuguese electricity grid between 2025 and 2034, more than double the previous plan of €755 million. The proposal, currently under public consultation by the Energy Services Regulatory Authority (ERSE) is focused on modernizing the grid, integrating renewable energy, adapting to climate change, and enhancing cybersecurity.
REN’s influence extends beyond renewable energy. In 2018, the company became an Industry Affiliated Partner of the CMU Portugal Program. But Rodrigo Costa’s connection to the program dates back even further to his time as Executive Vice President at Portugal Telecom, when he helped bring the company into the partnership in 2006.
Considering these recent milestones, we took the opportunity to gather his insights on this achievement and plans for the future.
Congratulations on behalf of the CMU Portugal Program for being featured in Time’s “Time100 Climate” list. Could you share your thoughts on this recognition and what it means to you and to Portugal’s renewable energy sector?
I am honored to be featured in the “Time100 Climate list”, but I recognize that it is mainly a country and corporate recognition. Portugal is a very good example as energy transition is concerned. And REN, Portugal’s energy transmission system operator (TSO), plays a fundamental role in the country’s energy transition.
Twenty years ago no one could anticipate where we are now. Regarding renewable energy generation we came a long way. Portugal was one of the first countries to develop renewable generation beyond hydro. In fact, at the beginning of this century, we start developing wind generation and in the past few years, photovoltaic became the main driver of renewable energy investment. In 2021, the last coal plant was closed, which represented a notable milestone in the energy transition.
In 2024 over 70% of our electricity came from hydro, wind, solar and biomass sources. We all agree that this achievement deserves credit, and I have no doubts that this recognition will encourage others to do the same. Portugal is now in 4th place regarding renewable generation in Europe.
Just in the last 10 years, renewable installed capacity has grown 6 GW, from which, 3,6 GW in the very high voltage network (Hydro 1,7 GW, Solar 1,6 GW and 0,3GW wind).
Total installed generation capacity in 2024 was 22,8 GW and the consumption peak 9,7 GW.
What were the key factors that led you receiving this distinction? Are there specific milestones or initiatives you are particularly proud of?
For sure, REN is a key catalyst on the energy transition process, but it is important to recognize that we are not alone. We recognize that we are but one among a long list of stakeholders, namely Portuguese policy makers, regulators, government agencies, generation and distribution companies, investors, technology and services providers, and universities. Such a collective effort makes the difference!
In REN we keep doing our job, going the extra mile whenever needed so that our projects are delivered as expected.
Developing energy infrastructures is complex, and in multiple situations they may have some negative impact on the environment. That is probably one of the most critical challenges we constantly face.
Being able to move on with the construction of power lines, substations and other project components need to be done with a huge focus on mitigating negative environment consequences. Finding the right path, preserving the ecosystems, being cost efficient, and overcoming these difficulties, I believe has been one of our best achievements.
Over the past 10 years, the following numbers speak more than any words: on solar generation, from 0.4GW to 3.9 GW, with 2 GW in the last two years; on wind, from 4.8 to 5.4 GW; and as already
mentioned, 1.8 GW of coal generation were closed. We were the first European country to be fully supplied by renewable generation during six consecutive days, a major milestone.
How has REN positioned itself as a leader in renewable energy, now including recent advancements in the green hydrogen sector?
We have to be able to anticipate the future, making sure we prepare ourselves as best as we can. Being on top of innovations, exploring the new technologies to find solutions for old or new problems, this is something we cannot stop doing. Hydrogen is a good example.
We recognize that hydrogen is a very serious new old thing. We have gone through decades of research and evaluation of hydrogen potential and we believe that now, with the pressure to depart from fossil fuels, things are finally changing.
Hydrogen can be a major energy option. The most optimistic ones usually state that from the “H2O”, it is enough to remove the “O” and we have clean energy with zero emissions. But we still need more R&D and better production costs. That will come with new production technologies, related investments and increase in demand.
We are doing our part regarding infrastructures. REN was the first European national operator to have its national network of pipelines third party certified to include 10% hydrogen blends. Now, it is completing the evaluation to achieve 100% H2 compatibility and face future pipeline repurposing. Pipelines are still the most efficient way to move H2 but require scale.
Hydrogen sourcing requires the time that other technologies had to be market ready, like wind and solar. To deliver green H2 as a market driven commodity, electrolizer costs and electricity prices have to bridge the existing value gap between production cost and willingness of clients to pay. At present, transportation, refineries and e-fuels are probably the most important cost barriers to lower H2 costs and more affordable and wider use of H2.
Expresso recently highlighted REN’s plan to invest €1.69 billion in the Portuguese electricity grid between 2025 and 2034. How will this investment shape Portugal’s energy landscape, contribute to the broader European grid, and align with REN’s strategic goals for the next decade?
Our 10-year plan results from work we developed with the Government and other domestic and international energy stakeholders. The plan incorporates multiple projects that allow the transmission grid (for high-voltage electricity and for high-pressure natural gas) to adapt to the country needs.
REN, in spite of being privately owned and a listed company on the Lisbon Stock Exchange, is a highly regulated company, which mainly operates two public service concessions, one of high-voltage electricity transmission, the other of high-pressure natural gas transmission and storage. Therefore, its investments, that ensure the maintenance of an efficient and safe energy system and address new market trends, must also fulfill two other major requirements. They must comply with all the clauses of the two public services concessions REN operates and the regulatory framework set by the domestic energy regulator. And they must be previously approved by the government and be well integrated into the country’s energy policy.
Energy transition and industrial development are attracting new clean industries to areas of lower electricity production costs, together with an increase in energy requirements from the new digital world we are building.
As time goes by, our plans are reviewed and updated incorporating necessary adaptations that happen due to national and international rules, innovations, or even crisis.
As energy is concerned, Europe benefits from a well-structured industrial network and the necessary institutional framework, both at the level of the European Union and at the level of Member-States. At the EU level, the European Energy Directorate General, and the two energy national TSO organizations of electricity and natural gas (ENTSOE and ENTSOG, respectively) play a major role. In each country, the energy regulator as well the other government energy and environment bodies are key contributors for the long-term plan design and approval.
The Portuguese Government recently updated the Energy and Climate 2030 targets are as follows in GW´s.
You have supported the CMU-Portugal Program since its beginning, first with Portugal Telecom, then engaging NOS (formerly ZON ), and now REN, which joined CMU-Portugal as an Affiliated Partner in 2018. From your vantage point, any suggestion or advice for the next Phase?
I had the opportunity to discuss with Professor José Fonseca de Moura the future of your program and I think it is evolving in the right direction and that has been recognized by the Portuguese Government.
The program is addressing exactly the core of this decade technology transformation, in particular AI and related technologies.
The opportunity created by the immense and fast increase in computer power has been fantastic and difficult to anticipate where it might take us. Developing and applying new knowledge that are instrumental in developing those new technologies should be a priority for Portuguese universities, and CMU-Portugal has been a great partner in advancing this priority.
When I look back on your program numbers–students, projects, published papers, new business development, knowledge transfer–I feel it was worth it and the future could be even more promising. In fact, past experience in programs like this, help shaping and making them even more efficient and successful.
The majority of the participants in CMU-Portugal programs are pursuing their academic or corporate activities in Portugal and some have decided to move abroad. But I have no doubts that the overall impact has been extremely positive, both for each participant and for the country as a whole.
Since the program’s inception, I have had the opportunity to lead organizations that have taken advantage of the program, either by sending their staff members to CMU-Portugal programs or hiring new employees who have benefited from such programs. And when we evaluate a CV, we recognize important value if the candidate participated in CMU-Portugal or similar programs.
