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06.12.2024

Legal Alert | Portugal accelerates renewable energy generation and storage projects

Legal Alert | Portugal accelerates renewable energy generation and storage projects

Decree-Law 99/2024 of 3 December establishes maximum deadlines for licensing and prior control procedures for renewable energy projects, including two years for production and operating licences (three years for offshore projects) and reduced deadlines for prior registrations and retrofits. It introduces a complete legal regime for energy storage solutions, allowing hybridisation with existing plants and prior checks on storage capacity. It updates the compensation for municipalities, standardising regimes for installations above 1 MVA and allowing for various types of compensation. In the environmental field, it makes the proposal to define the scope of environmental impact studies mandatory and definitively adopts the exemption from assessment for solar installations on buildings or artificial structures, with exceptions. In addition, it simplifies criteria for UPAC and storage in agricultural areas and provides for measures to reduce bureaucracy for projects on the public electricity grid.

The Decree-Law no. 99/2024, of 3 December1 establishes new maximum deadlines applicable to certain licensing procedures to accelerate renewable energy projects in Portugal:

Electricity storage solutions now have a complete legal framework, allowing for the hybridisation of a power plant with co-located storage when such facility is added to a power plant that has obtained a generation license, prior registration or prior communication. A procedure is also created for the prior verification of storage capacity (and not just injection) from the public electricity grid.

With regard to the compensations made to the municipalities where the power plants or storage systems are located, those will now apply to any facility with a connection power of more than 1 MVA, whereas previously there were different regimes for facilities with a connection power of more than (i) 50 MVA and (ii) equal to or less than 50 MVA and more than 1 MVA.

Transfers to the municipalities may correspond to one of the following alternatives, at the choice of the municipalities:

  • Electricity generation unit for self-consumption (UPAC) with installed power equivalent to 1% of the connection power of the power plant or storage system;
  • Charging points for electric vehicles located in publicly accessible public space with an equivalent capacity; or
  • One-off compensation of EUR 1500 per MVA of connection power, to be used to promote the energy efficiency of municipal buildings, collective use equipment or residential buildings.

In terms of environmental impact assessment, we highlight the following amendments:

  • It is now compulsory for renewable energy power plants and relevant infrastructures to submit a proposal for defining the scope of the Environmental Impact Study (PDA), whereas before it was only a matter of the developer's discretion;
  • The exemption from environmental impact assessment for solar power plants (and their energy storage systems) installed in artificial buildings or structures has now been adopted as a definitive legal regime, whereas until now it was only a provisional rule, which would expire at the end of 2024, applicable only to UPACs. This exemption scheme does not apply in certain special situations (for example, when the power plants are installed on artificial water bodies or in classified areas or buildings in the process of being classified and their respective protection zones).

This decree-law also approves the following amendments: 

  • Reduction (in 1/3) of the value of the security deposit required (EUR 10,000.00 per MVA) when the grid injection capacity reservation title is granted by means of an agreement with the system operator; 
  • Possibility of extending, without limit, the deadline for submitting an application for an operation certificate (installations of up to 1 MW); and 
  • Simplification of the proximity criteria applicable to UPACs;
  • Simplification, in certain situations, of the installation of UPACs or storage systems in areas that are part of the National Agricultural Reserve;
  • Duly approved investment projects in the public service electric system are not subject to any kind of demonstration of municipal interest.

Morais Leitão’s energy and natural resources team remains fully available to answer any additional questions.

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Altera e republica o Decreto-Lei n.º 15/2022, de 14 de janeiro, transpondo parcialmente a Diretiva (UE) 2023/2413, que altera a Diretiva (UE) 2018/2001, o Regulamento (UE) 2018/1999 e a Diretiva 98/70/CE, no que respeita à promoção de energia de fontes renováveis, e que revoga a Diretiva (UE) 2015/652 do Conselho.