Spain and Portugal will set up Iberian Renewable Energy Centre in Badajoz city near the Portuguese border. The proposed centre will help the two nations in improving their expertise in the renewable energy sector. The centre will be headed by Portugal's Antonio Sa da Costa, the current vice president of the European Reneable Energy Federation. Portugal aims to produce 45% of its total power consumption from renewable sources like solar and wind power by 2010.

Spain aims to triple the amount of energy it derives from renewable sources by 2020.

This is absolutely essential for nations like Portugal and Spain since the reduction of our dependence on oil is strategic for our future, Portuguese Prime Minister Jose Socrates, said.

Socrates also continued that both the nations aim to have a high-speed rail link between Lisbon and Madrid, and another between the Portuguese capital and Vigo in northern Spain, completed by 2013 despite calls from Portugal’s main opposition party that it be scrapped.

I don’t want the country to fall behind and remain outside of the network of high-speed rail links in Europe, Socrates said, calling the project absolutely essential.

As per Socrates, Portugal and Spain have agreed that one of the stations along the high-speed rail link between Lisbon and Madrid will be between the border cities of Badajoz and Elvas in Portugal.

The Spanish government plans to have 10,000 kilometres of high-speed railway track in place by 2020. This would mean that 90% of Spain’s population will live less than 50 kilometres from a bullet train station.

Earlier in January 2009, Manuela Ferreira Leite said that she would shelve the project if her party is elected in a general election expected at the end 2009.