In 2006 the world's largest solar power plant began operating in the nation's sunny south while the world's first commercial wave power farm opened in October 2006 in the Norte region. As of 2006, 55% of electricity production was from coal and fuel power plants. The other 40% was produced by hydroelectrics and 5% by wind energy. The government is channeling $3.8 billion into developing renewable energy sources over the next five years.

Portugal wants renewable energy sources like solar, wind and wave power to account for nearly half of the electricity consumed in the country by 2010. "This new goal will place Portugal in the frontline of renewable energy and make it, along with Austria and Sweden, one of the three nations that most invest in this sector", Prime Minister José Sócrates said.

Transportation was seen as a priority in the 1990s, pushed by the growing use of automobiles and industrialization. The country has a 68,732 km (42,708 mi) network of roads, of which almost 3,000 km (1,864 mi) are part of a 44 motorways system.

The two principal metropolitan areas have subway systems: Lisbon Metro and Metro Sul do Tejo in Lisbon Metropolitan Area and Porto Metro in Porto, each with more than 35 km (22 mi) of lines. Construction of a high-speed TGV line connecting Porto with Lisbon and Lisbon with Madrid will begin in 2008; it will replace the Pendolinos.

Lisbon's geographical position makes it a stopover point for many foreign airlines at airports all over the country. The government is currently studying two locations (Ota and Alcochete) to replace the present Lisbon airport. Currently, the most important airports are in Lisbon, Faro, Porto, Funchal (Madeira), and Ponta Delgada (Azores).

Portugal has one of the highest mobile phone penetration rates in the world (the number of operative mobile phones already exceeds the population). This network also provides wireless mobile Internet connections as well, and covers the entire territory. As of October 2006, 36.8% of households had high-speed Internet services and 78% of companies had Internet access. Most Portuguese watch television through cable (June 2004: 73.6% of households). Paid Internet connections are available at many cafés, as well as many post offices. One can also surf on the Internet at hotels, conference centres and shopping centres, where special areas are reserved for this purpose. Free internet access is also available to Portuguese residents at "Espaços de Internet" across the country.

Portugal has also modernized its water supply and sanitation system, in particular by increasing the rate of wastewater treated with support from EU subsidies to 80%. The country has also established a modern institutional and legal framework for the water and sanitation sector, including an autonomous regulatory agency, a national asset holding company called Aguas de Portugal and a number of multi-municipal utilities. This replaced an institutionally fragemented sector structure, under which the country's 308 municipalities - many of them very small - had exclusive responsibility for water and sanitation.