Subsidy: Incentive System for the Production of Energy from Renewable Resources in the Azores Autonomous Region – PROENERGIA

• DLR 14/2019/A
• Ordinance 73/2019

PROENERGIA is a subsidy-driven programme designed to maximise the production and utilisation of renewable energy by Azorean consumers. It does so by subsidising RES-H&C projects that aim to produce hot water through the utilisation of solar, thermal energy, heat pumps, and biomass; and produce energy via endogenous resources for heating purposes (art. 2, paragraph 1, letters a, b and c DLR 14/2019/A). In order to be eligible to receive the financial incentive, projects must demand a minimum investment of EUR 500 (art. 4, letter a DLR 14/2019/A).
Costs eligible for coverage:
• Acquisition and assembly of equipment essential to carry out the project; and
• Adaptation of installations following security and environmental standards (art. 6, paragraph 1 DLR 14/2019/A).
Applications can only be accepted by the Regional Directorate of Energy (DREn) within a 90-day period after the conclusion of the project (art. 9 DLR 14/2019/A).

The amount of the subsidies to be given is calculated as follows:
1. For projects on production and storage of electricity from renewable resources: 25% percent of the eligible costs, up to a maximum of EUR 4,000 per establishment.
2. For projects on production of hot water through the utilisation of solar, thermal energy, heat pumps, and biomass: 35% of the eligible costs, up to a maximum of EUR 4,000 per establishment.
3. For projects on production of energy via endogenous resources for heating purposes: 25% of the eligible costs, up to a maximum of EUR 4,000 per establishment (art. 8, paragraphs 1, 2 and 3 DLR 14/2019/A).
Specific cases:
Biomass-centred projects whose aim is to produce water and space heating are eligible for the incentive percentages described in bullet points 2 and 3 (art. 8, paragraph 4 DLR 14/2019/A).
Projects led by non-profit, charity institutions are eligible to receive a maximum fixed amount of EUR 20,000 (art.8, paragraph 5 DLR 14/2019/A).
Projects located in the islands of Faial and Pico are eligible to receive an additional 5-percent increase in the percentages of covered costs described in bullet points 1, 2 and 3, but with no alteration of the maximum fixed amount (art. 8, paragraph 6 DLR 14/2019/A).
Projects located in the island of Santa Maria are eligible to receive an additional 10-percent increase in the percentages of covered costs described in bullet points 1, 2 and 3, but with no alteration of the maximum fixed amount (art. 8, paragraph 7 DLR 14/2019/A).
Projects located in areas covered by the UNESCO Biosphere Reserve – i.e., in the Corvo, Flores, Graciosa and São Jorge islands – are eligible for a 12-percent increase in the percentages of costs covered described in bullet points 1, 2 and 3, but with no alteration in the maximum fixed amount (art. 8, paragraph 8 DLR 14/2019/A).
Projects located in areas with no direct access to public transportation, nor to the energy distribution grid, or whose costs to fix the lack of access are equal or higher than EUR 12,000 have the percentages mentioned in bullet points 1, 2 and 3 changed to 50%, but with no alteration of the fixed amount (art. 8, paragraph 9 DLR 14/2019/A).

Micro, small and medium companies (encompassing single entrepreneurs, cooperatives, non-profit organisations, and condominiums) as well as individuals (art. 2, paragraph 2, letters a and b DLR 14/2019/A).

Applications must be submitted, containing all documents listed in Ordinance 73/2019, to the Regional Directorate of Energy (DREn), via its online Portal, within 90 days after the conclusion of the project.
DREn has 30 days to make a decision and to notify producers of the amount that they’ll be given. The notification will be publicised via the Regional Official Gazette.
In case producers appeal of the decision, DREn has 10 days to reassess the application (art. 9 and 10 DLR 14/2019/A).

Regional Directorate of Energy (DREn)