Policies in Portugal

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.

• 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.

By 2030, the Portuguese government intends to increase the participation of renewable resources in the heating and cooling sectors to 38% (NECP). For this sector, the government’s primary focus is on improving heating and cooling solutions via incorporating low-carbon materials and renewable resources into the process (NECP). These solutions are supported through subsidies and a tax regulation.

• Subsidy – incentive program for the implementation, or improvement, of sustainable features in buildings
• Subsidy (PROENERGIA) – an incentive programme aimed at increasing energy production from renewable resources in the Azores region;
• Tax regulation – the implementation of tax exemption for biofuels to be employed in energy purpose (e.g., heating and cooling).

• Ministry of Environment and Energy Transition
• Environmental Fund
• Regional Directorate of Energy (DREn)
• Directorate-General for Customs and Excise.

According to goals set for the transportation sector in its National and Energy Climate Plan 2030, Portugal envisages renewables to hold a share of 20% of the final consumption by 2030 (NECP) and a reduction in emissions of greenhouse gases of 40% by the same year (NECP).
The improvement in efficiency and the decarbonisation of the sector will be carried out mainly via fleet renewal (e.g., provision of grants, subsidies, and overall benefits for natural and legal persons to acquire low-carbon, e-vehicles as well as charging stations); reduction in taxes for automobiles that fit into low-carbon, sustainable standards; and quota systems, so that final consumers can become aware of the share of renewable energy used in their final consumption.

• Subsidy – grant for the acquisition of low-carbon, e-vehicles nationwide;
• Subsidy – grant for the acquisition of e-vehicles in the Azores region;
• Subsidy – grant for the acquisition of e-vehicles in the Madeira region;
• Subsidy – grant for the substitution of end-of-life vehicles in the Madeira region;
• Tax regulation – reduction of taxes for vehicles with hybrid engines;
• Biofuel quota – certificate of guarantee of origin issued for consumers to be aware of the amount of renewable energy included in their final energy consumption;
• Infrastructure support - financial incentive for the acquisition of a charging station for electric vehicles.

• Fundo Ambiental
• Regional Directorate of Energy (DREn).
• Regional Directorate of Economy and Land Transport (DRETT).
• DRETT’s Land Mobility Division.
• Directorate-General for Customs and Excise.
• Energy Services Regulatory Authority (ERSE).