Portugal towards carbon neutrality

Rosado Correia (Miranda & Associados), Rocha (Telles) and Capela Godinho (Pérez-Llorca) unsderscore the need for clear regulations and streamlined processes to foster additional progress in renewable energy

by glória paiva

In the first six months of the year, Portugal set a new and significant sustainability record: renewable energy production in the country supplied 82% of consumption, the highest contribution during the first half of the year in the last 45 years, according to REN (Redes Energéticas Nacionais). Hydroelectric power was the most used, accounting for 39% of consumption, followed by wind power at 28%, photovoltaic at 9%, and biomass at 6%. The remaining percentage was covered by natural gas production (8%) and imports (10%). These are numbers to celebrate, resulting from a rare combination of natural geographic advantages with a trajectory of private, legislative, and public policy efforts focused on the energy transition, signalling a strong commitment to the goal of achieving carbon neutrality by 2050. However, there are still numerous legal obstacles that could hinder projects aimed at increasing the share of renewable energy in final energy consumption, and Iberian Lawyer has talked to a few experts about it.

Portugal currently has one of the most ambitious targets in the field of sustainability and energy transition and is an example for other countries, believes João Rosado Correia, partner at Miranda & Associados specializing in Energy, Public Law, and Regulation. The current goal of the country is to reach 85% renewable electricity by 2030, but the target could increase to 93% if the new version of the National Energy and Climate Plan 2030 (PNEC), open for public consultation between July 22 and September 5, is approved. “The contribution and national targets are among the most promising at the European and global levels. Portugal is attentive to the introduction of new technologies, seeking to create conditions for pioneering solutions,” assesses Rosado Correia.

COMPETITIVE ADVANTAGES

European decarbonization policy and its transposition to the Portuguese context have been fundamental in this journey, with solar, wind, and hydroelectric generation sources being winning bets. For Ivone Rocha, partner at Telles responsible for the areas of Energy, Natural Resources, Environment, and Climate
Change and president of the Platform for Sustainable Growth, continuous efforts and the growing adoption of renewable energies by consumers have yielded results. Interviewees point out that Portuguese legislation has been among the “friendliest” in the world on this subject. Some examples, according to Rosado Correia, are recent measures such as the National Energy and Climate Plan 2030 (PNEC), the main national energy policy instrument; Decree-Law 84/2022, which transposed EU Directive 2018/2001 to promote the use of energy from renewable sources; Resolution of the Council of Ministers 50/2024, which creates the Mission Structure for the Licensing of Renewable Energy Projects 2030; the Biogas Action Plan 2024-2040; and the regulation of the incentive system “Support for the Development of an Ecological Industry,” approved last June 7. Solutions that use passive energy systems in urbanization and building are also privileged.

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Glória Paiva

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