Policies in Portugal

Portugal’s heating and cooling (H&C) grids, while less extensive than electricity grids, are integrated into the national energy strategy and increasingly subject to regulation focused on renewable energy and energy efficiency improvements. Heating and cooling services are typically decentralised and managed at the local level, with isolated district heating projects established in some urban areas.

• Strategic Importance and Development Goals: Portugal’s 2030 National Energy and Climate Plan (PNEC 2030) and 2050 Carbon Neutrality Roadmap outline goals to decarbonise heating and cooling by increasing the share of renewable energy and improving energy efficiency. Efforts to implement geothermal, biomass, and solar thermal sources in H&C systems are growing in regions with high demand, especially urban areas and some industrial zones​.
• Regional and Local Management: Local authorities are empowered to create district heating projects and must align with national efficiency goals and renewable energy targets. The Autonomous Regions of Madeira and Azores are also encouraged to develop H&C systems that leverage local renewable resources.

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The use of heating and cooling (H&C) grids is primarily regulated by local authorities, who oversee the rights and obligations of both suppliers and consumers. Regulations ensure that heating services remain affordable and accessible, especially in areas with higher heating needs.

• Consumer Rights and Pricing: The Energy Services Regulatory Authority (ERSE) provides guidance on consumer rights and cost structures, ensuring affordability and transparency for H&C services, particularly in urban district heating. Consumers are entitled to stable pricing mechanisms, with renewable integration incentives provided to reduce dependency on fossil fuels​.
• Efficiency and Environmental Standards: ERSE also oversees efficiency standards for connected H&C systems to minimize environmental impact, requiring periodic assessments to ensure compliance with emissions and energy-saving goals outlined in Portugal’s 2030 National Energy and Climate Plan (PNEC 2030). These standards include thermal loss minimisation, emissions tracking, and energy source reporting requirements for H&C system operators.

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