The Portuguese government introduced, via its NECP 2030 document, the ambitious target of increasing the share of renewable energy resources in electricity production to 80% by 2030 (NECP, p. 34).
Electricity generation from renewable energy sources in Portugal is supported through subsidies, a feed-in tariff, tenders and a tax exemption.
Summary of support system
- Subsidy (PROENERGIA) – an incentive programme aimed at increasing energy production from renewable resources in the Azores region;
- Subsidy (More Sustainable Buildings) – a programme focused on encouraging the introduction, or improvement, of sustainable, energy-efficient features in buildings;
- Feed-in Tariff – a remuneration regime designed to support investments in renewable technologies for energy generation;
- Tenders (especially for the solar sector) – mechanism conceived to navigate Portugal’s high demand for electricity production permits vis-à-vis the scarcity in grid capacity. By encouraging more competitivity among contenders and more attractive prices, tenders have become a cost-effective way for the government to boost investments in renewable energy generation capacity. They do so by giving priority to projects with lower costs and higher viability of execution.
- Tax regulation mechanism: tax exemption for biofuels used energy purposes other than transportation
- Energy Services Regulatory Authority (ERSE).
- Directorate-General of Energy and Geology (DGEG).
- Azores Regional Directorate of Energy (DREn).
- Ministry of Environment and Energy Transition.
- Environmental Fund.