New RRP component: C21 REPowerEU

With the update of the RRP, a new component, C21 - RepowerEU, was created to support Portugal's ambitions in terms of energy independence and ecological transition, in the context of the new geopolitical and energy market situations.

This component contributes to responding to the specific recommendations addressed to Portugal to reduce dependence on fossil fuels (recommendation n^er 4 of 2022 and 2023) and to focus investment on the energy transition and towards a low-carbon economy (recommendation n^er 3 of 2019) and on the efficient and non-polluting production and use of energy (recommendation n^er 3 of 2020). It includes, in particular, measures to accelerate the deployment of renewable energies, simplify licensing, decarbonize the transport sector, improve the energy efficiency of buildings, modernize electricity transmission and distribution networks, increase electricity storage and strengthen the acquisition of the green skills needed for the ecological transition.

To this end, a series of measures are planned for the coming months, as described below:

• RP-C21-i01: Reinforced measure: Industry decarbonization (EUR 100 M)

The aim is to reinforce investment TC-C11-i01: Decarbonization of industry under component 11. The reinforced part of the measure should increase the number of decarbonization projects supported.

With this reinforcement of the measure, support should be granted to 500 small and medium-sized enterprises for projects of a maximum amount of EUR 200,000 per enterprise over three financial years ("simplified" projects).

• RP- C21-i03: Reinforced measure: Energy efficiency in buildings used by the service sector (EUR 80 M)

The aim is to reinforce investment TC-C13-i03 Energy efficiency in buildings used by the service sector under component 13. The reinforced part of the measure should increase the area renovated in private service buildings.

• RP- C21-i05: Support for the development of a green industry (EUR 50 M)

The aim is to increase the production capacity of renewable energy technologies, decarbonization and energy efficiency by companies, in line with the PNEC 2030 targets and the objectives of the European Green Deal Industrial Plan. The support should consist of grants and support industrial investment in the production of strategic technologies for the climate transition, which should be directly linked to solar photovoltaics and solar thermal energy, electrolysers and fuel cells, onshore wind energy and off-shore renewables, sustainable biogas/biomethane, batteries and storage, carbon capture and storage, heat pumps, energy efficiency, geothermal energy or grid solutions.

• RP- C21-i06: Reinforced measure: Hydrogen and Renewable Gases (EUR 70 M)

The aim is to reinforce investment C14-i01: Hydrogen and renewable gases under component 14. The investments will have a very specific focus and will seek to increase installed capacity for the production of renewable hydrogen and other renewable gases, including installed capacity in electrolysers for the production of renewable hydrogen. It will be implemented through open call(s) for tenders with a maximum allocation of €15,000,000 per project.

• RP- C21-i08: Grid Flexibility and Storage (EUR 100 M)

The aim is to increase the flexibility of the public electricity grid, allowing for the optimization and flexible management of the electricity system, also considering the expected increase in the production and consumption of renewable electricity. The investment must include support for the installation of at least 500 MW of energy storage capacity on the electricity grid (both at transmission and distribution level). Storage capacity should be allocated on the basis of pre-identification of the areas most in need, such as areas with the greatest grid constraints or the highest penetration of renewable energies. Projects will be supported up to 20% of eligible costs.

• RP- C21-12: Reinforced measure: Decarbonization of Public Transport (EUR 90 M)

The aim is to reinforce investment TC-C15-i05: Decarbonization of public transport under component 15. The reinforced part of the measure should increase the number of new zero-emission buses used for public transport. The scope of the investment should be broadened from the Lisbon and Porto Metropolitan Areas to the entire mainland and should also include the installation of charging or refueling stations.

For more information see: https://recuperarportugal.gov.pt/transicao-climatica/c21-repowereu/