Portugal has received the green signal from the European Commission to back local manufacturing of RE equipment
This includes the production of solar panels, batteries, wind turbines, heat pumps, electrolyzers, equipment for carbon capture usage and storage
The aid will be offered as direct grants no later than December 31, 2025
The European Commission has approved a €1 billion state aid scheme for Portugal to invest in the manufacturing of equipment necessary for the country’s transition to a net-zero economy, including solar panels and batteries.
Cleared under the Temporary Crisis and Transition Framework (TCTF), the scheme will also support the local production of wind turbines, heat pumps, electrolyzers, and equipment for carbon capture usage and storage. It will also be used to back the manufacturing of equipment or related critical raw materials necessary for their production.
The state aid will be provided in the form of direct grants no later than December 31, 2025. This approval, according to the commission, is in line with the Green Deal Industrial Plan (GDIP).
Portugal targets to achieve an 80% renewable energy share in its electricity mix by 2026. For this, it will aim for 8.5 GW of solar PV capacity by 2025, increasing it to 20.4 GW by 2030 (see Portugal Tweaks Renewable Energy Targets).
“This €1 billion Portuguese measure supports investments in strategic equipment to accelerate the transition to a net-zero economy,” said Executive Vice-President in charge of competition policy at the European Commission, Margrethe Vestager. “This is in line with the objectives of the Green Deal Industrial Plan and the EU’s climate neutrality target, whilst ensuring that competition distortions remain limited.”
In recent times, the commission also approved a state aid scheme of €1.1 billion for Italy and €1.2 billion for Poland for these countries to manufacture renewable energy equipment locally (see Poland’s State Aid Scheme For RE Component Manufacturing Cleared).
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