Overview
Portugal has implemented a range of support mechanisms to enhance its electricity sector, focusing on financial incentives, non-financial assistance, and specific provisions for the Autonomous Regions of Madeira and the Azores. These initiatives are overseen by designated competent authorities to ensure effective implementation and regulation.
The Portuguese government has significantly revised its renewable energy targets since the initial NECP 2030 document. The updated plan now aims for renewables to constitute 85% of electricity production by 2030, an increase from the previous 80% target. Moreover, electricity generation from renewable energy sources in Portugal includes tax benefits such as corporate income tax deductions for research and development in renewable technologies, potential exemptions from municipal property taxes for renewable installations, and favourable energy taxation regimes for energy produced from renewable sources.
Summary of support system
Financial Support Mechanisms
- Feed-in Tariffs and Auctions: The Portuguese government offers feed-in tariffs to encourage investments in renewable energy technologies. Additionally, competitive auctions, particularly in the solar energy sector, have been established to manage the high demand for electricity production permits and to optimise grid capacity allocation.
- Incentive Programmes: Programmes such as "More Sustainable Buildings", from the Environmental Fund, provide subsidies to promote the integration or enhancement of sustainable, energy-efficient features in buildings.
Non-Financial Support Mechanisms
- Technical Assistance and Capacity Building: The Directorate-General for Energy and Geology (DGEG) offers technical support and develops regulations to promote energy efficiency and the integration of renewable energy sources.
- Policy and Regulatory Frameworks: The government has established comprehensive policies, such as the National Energy and Climate Plan (NECP) 2030.
Specific Support for Madeira and Azores Islands
- Madeira: In Madeira, efforts are underway to enhance energy storage and increase the penetration of renewable energy sources. The region is focusing on projects that promote energy efficiency, the transition to electric mobility, and the development of energy storage solutions to reduce reliance on thermal power plants.
- Azores: The Azores have implemented the PROENERGIA programme, an incentive system designed to boost energy production from renewable resources within the region.
Competent authorities
- Energy Services Regulatory Authority (ERSE)
- Directorate-General of Energy and Geology (DGEG)
- Azores Regional Directorate of Energy (DREn)
- Ministry of Environment and Energy
- Environmental Fund