EC clears EUR-350m Portuguese aid scheme for renewables equipment

The European Commission (EC) has given the green light to a state aid scheme in Portugal that will back the production of renewable energy equipment in the Iberian country with EUR 350 million (USD 382.5m).

The financing will be made available as direct grants to companies involved in the manufacturing of solar panels, wind turbines, heat pumps, electrolysers and equipment for carbon capture, utilisation and storage. Companies focusing on the extraction of raw materials essential for those production activities will also qualify, according to official documents.

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The funds will be disbursed from Portugal’s Recovery and Resilience Facility with the goal of supporting the transition towards a net-zero economy. Each beneficiary will be able to receive state aid before December 31, 2025.

The EC noted that the financing is “necessary, appropriate and proportionate” to accelerate the green transition and facilitate the development of certain economic activities in the country. It has assessed the measure under the Temporary Crisis and Transition Framework.

The nod to the Portuguese scheme follows approvals for similar programmes in Italy and France.

(EUR 1.0 = USD 1.093)