Portugal targets €100m aid for energy-intensive industry

Portugal wants to increase support for energy-intensive companies to €100 million this year, Environment Minister Maria da Graça Carvalho said in an interview with ECO, a move aimed at keeping domestic industry competitive as energy security risks rise in Europe. The plan signals further state backing for heavy electricity users, although only €30 million is currently secured.

The minister said the support is linked to costs under the EU Emissions Trading System and that Brussels has already authorised the measure. Portugal granted €50 million last year, has €30 million available this year through the Environmental Fund, and wants to raise that to €100 million “to be in line with other European countries”, she said, adding that the goal is to do so this year.

On household electrification, Carvalho said the government will first close existing support schemes, including Vale Eficiência and E-Lar, before launching a new programme for solar panels and batteries. She said that should move ahead by the end of the year, although part of the support may slip into next year.

Asked whether the conflict involving Iran could change the government’s view of talks between Galp and Spain’s Moeve over the Sines refinery, the minister said the state would not intervene in a private deal and was focused instead on ensuring the conditions for a refinery to remain competitive in Portugal. Those conditions include fiscal incentives and regulatory targets that help create a market for refinery output, she said.

Carvalho also said Portugal is relatively protected from a broader electricity shock because gas sets power prices for only a limited number of hours in the Iberian market, and argued the government has tools to stop a spike in gas prices feeding through to electricity bills in a crisis. On aviation fuel, she said Portugal does not expect shortages, including at the summer peak.

Originally published at Eco.pt