th position, with an impressive increase in innovation expenditure and output.
Energy
Portugal has considerable resources of wind and river power, the two most cost-effective renewable sources. Since the turn of the 21st century, there has been a trend towards the development of a renewable resource industry and reduction of both consumption and use of fossil fuel resources. In 2006, the world's largest solar power plant at that date, the Moura Photovoltaic Power Station, began operating near Moura, in the south, while the world's first commercial wave power farm, the Aguçadoura Wave Farm, opened in the Norte region (2008). By the end of 2006, 66% of the country's electrical production was from coal and fuel power plants, while 29% were derived from hydroelectric dams, and 6% by wind energy. In 2008, renewable energy resource methods began to produce 43% of the nation's consumption of electricity, even as hydroelectric production decreased due to severe droughts. As of June 2010, electricity exports had outnumbered imports. In the period between January and May 2010, 70% of the national production of energy came from renewable sources.
Portugal’s national energy transmission company, Redes Energéticas Nacionais (REN), uses sophisticated modeling to predict weather, especially wind patterns, and computer programs to calculate energy from the various renewable-energy plants. Before the solar/wind revolution, Portugal had generated electricity from hydropower plants on its rivers for decades. But new programs combine wind and water: wind-driven turbines pump water uphill at night, the most blustery period; then the water flows downhill by day, generating electricity, when consumer demand is highest. Portugal’s distribution system is also now a two-way street. Instead of just delivering electricity, it draws electricity from even the smallest generators, like rooftop solar panels. The government aggressively encouraged such
