Decree-Law No. 79/2025
Decree-Law No. 79/2025, published on 21 May, aims to update and strengthen the legal framework applicable to the National Gas System (SNG), by integrating renewable and low-carbon gases—such as hydrogen (H₂)—into existing infrastructure. Additionally, it lays the foundation for the development of dedicated hydrogen infrastructure and defines the entities responsible for the sector’s planning, licensing, and regulation.
Key Changes:
- Expanded definition of “gas”: The concept of gas now includes not only natural gas but also renewable and low-carbon gases, whether pure or blended, provided that network interoperability is ensured;
- Streamlined procedures: All requests, communications, and notifications related to activities in the gas sector—including the production of renewable gases—must now be submitted via the Portuguese government's central digital platform ‘gov.pt’ (link), supporting digitalization and simplification of processes;
- Mandatory 10% security deposit on reserved capacity: The decree-law introduces a compulsory security deposit amounting to 10% of the project's reserved capacity, refundable upon the start of operations.
Strategic Gas Reserves:
- The decree extends extraordinary measures related to the strategic natural gas (NG) reserve until 31 December 2027, reinforcing national supply security;
- The National Entity for the Energy Sector (ENSE) remains responsible for the establishment, management, and maintenance of the strategic NG reserve, including the possibility of partial sales of the reserve, subject to governmental approval.
Hydrogen (H₂):
- Recognition of hydrogen as an energy vector: The decree introduces specific definitions for "low-carbon hydrogen" and integrates renewable and low-carbon hydrogen into the SNG;
- Dedicated infrastructure: The creation of dedicated networks for hydrogen and other renewable gases is foreseen, with a provisional designation of the entity responsible for planning, developing, and managing these networks. This entity will be appointed by the Government following a market consultation. In this context, Notice No. 930-A/2025, published on 21 May, calls for expressions of interest in the role;
- Transposition of EU directives: The decree anticipates the transposition of Directive (EU) 2024/1788, which sets out common rules for internal markets in renewable gases, natural gas, and hydrogen.
This decree-law also defines the entities responsible for sector oversight, namely:
- The Direção-Geral de Energia e Geologia (DGEG) is designated as the licensing authority for the renewable gas (RG), natural gas (NG), and hydrogen (H₂) markets;
- The Entidade Reguladora dos Serviços Energéticos (ERSE) is designated as the regulatory authority for these markets, representing Portugal at the Agency for the Cooperation of Energy Regulators (ACER).
This new legal framework provides greater clarity and predictability for operators and investors in the energy sector. The integration of natural gas into existing infrastructure and the establishment of clear rules for the development of new, dedicated hydrogen infrastructure create opportunities for investment and innovation. Furthermore, the digitalization of administrative procedures reduces bureaucracy and facilitates project development.
With the entry into force of this decree-law, Portugal takes a significant step in the transition to a low-carbon economy, promoting the integration of renewable energy sources into the gas sector. These measures are expected to encourage the development of innovative technologies and contribute to the sustainability and competitiveness of the national energy sector.
For more information, see: : link
