Five years ago, the leaders of this sun-scorched, wind-swept nation made a bet: To reduce Portugal's dependence on imported fossil fuels, they embarked on an array of ambitious renewable energy projects - primarily harnessing the country's wind and hydropower, but also its sunlight and ocean waves.

Today, Lisbon's trendy bars, Porto's factories and the Algarve's glamorous resorts are powered substantially by clean energy. Nearly 45 percent of the electricity in Portugal's grid will come from renewable sources this year, up from 17 percent just five years ago.

Land-based wind power - this year deemed "potentially competitive" with fossil fuels by the International Energy Agency in Paris - has expanded sevenfold in that time. And Portugal expects in 2011 to become the first country to inaugurate a national network of charging stations for electric cars.

"I've seen all the smiles - you know: It's a good dream. It can't compete. It's too expensive," said Prime Minister José Sócrates, recalling the way Silvio Berlusconi, the Italian prime minister, mockingly offered to build him an electric Ferrari. Mr. Sócrates added, "The experience of Portugal shows that it is possible to make these changes in a very short time."

Beyond Fossil Fuels - Portugal Makes the Leap to Renewable Energy