New incentive for the Portuguese industry’s competitiveness

• Portugal now has the authorisation to assist through 275 million euros the industries that use a lot of electricity in their production processes, until 2030.

• The green light given by Brussels is to compensate the electricity-intensive sector the rise in electricity prices due to the carbon costs on the European market for CO2 emissions. 

Maria da Graça Carvalho: "We are protecting the national industries who invest in the energy transition"

The European Commission gave the Portuguese Government the green light to increase by 100 million euros the support given to companies that use electricity intensively in their production processes. As of now, Portugal can use up to 275 million euros to partially pay the electricity-intensive industries for costs borne due to the rise in electricity prices from 2021 to 2030.

The industries in strategic sectors for the national economy, such as metalworks, chemistry, and paper that are particularly exposed to fluctuations in electricity prices are thereby more protected from a very competitive market inside and outside the European Union.

The rise in electricity prices is due to the costs of carbon on the European CO2 emissions market, under the EU Emissions Trading System.

Compensation is granted for the costs of indirect emissions in the previous year and if the requests are greater than the budget available, the amount is reduced proportionally for each recipient.

Please note that in April of this year, the European Commission had already given a green light to the Electro-Intensive Consumer status, which enables Portuguese industries to benefit from a cut that can be 75% and in some cases 85% in the costs of general economic interest in electricity tariffs.

The Ministry of Environment and Energy Maria da Graça Carvalho is pleased with Brussels’s quick approval which "allows the country to achieve a greater balance between industrial competitiveness and environmental responsibility, protecting the Portuguese companies that are investing in the energy transition".