The Portuguese Renewable Energy Association (APREN) emphasizes the urgency of implementing incentives for industrial Power Purchase Agreements (PPAs) and accelerating the transposition of European regulations for projects of superior public interest in order to meet the objectives outlined in the updated National Energy and Climate Plan (PNEC) of Portugal.

Here, the Portuguese government expects solar capacity to grow from 8.4 GW to 20.8 GW, and onshore wind capacity to increase from 6.3 GW to 10.4 GW by 2030.

In an interview with Energía Estratégica España, the organization highlights that “creating a robust PPA market, where SMEs can acquire renewable electricity at competitive prices, is one of these proposals that could have a significant impact.”

With this, PNEC 2030 could ensure the bankability of renewable energy projects by creating favorable conditions for PPAs and Electricity Purchase Agreements (CAE), backed by the state, which provide predictability to investors.

The electrification of industrial sectors, through the attraction of new electro-intensive companies, is seen as one of the main avenues to achieve 51% of energy consumption from renewable sources by 2030, a more ambitious goal than the previous 47%.

“One of the greatest challenges will be to increase renewable electricity consumption to 90 TWh by 2030, which requires a massive electrification of current companies and the attraction of new electro-intensive ones,” they add.

Administrative Agility

Another key factor in meeting PNEC objectives, according to APREN, is the transposition of European guidelines, emphasizing that renewable energy should be considered of “superior public interest.”

This measure would speed up the installation of new renewable projects by eliminating bureaucratic hurdles that currently slow the sector’s expansion.

The licensing process has been identified as one of the main concerns among the more than 170 comments received on the document.

“Slow licensing processes are a critical obstacle,” says APREN, “we need more agility in these processes to avoid unnecessary delays in the implementation of new projects.”

One proposed solution is the creation of acceleration zones for renewable projects, which would allow licenses to be obtained more quickly.

Modernization of the Electrical Grid

Another crucial aspect for the implementation of PNEC 2030 is the modernization of the electrical grid.

APREN advocates for an expansion of the grid’s capacity and its digitalization to ensure it can support the anticipated increase in industrial sector electrification and the integration of new renewable energy sources.

“The growth of the grid must go hand in hand with the increase in the installed capacity of renewable energy,” states the association.

Finally, they add that the 1 GW battery target is “not ambitious enough” for the needs of an electricity mix with more renewables, emphasizing the importance of creating incentives for energy storage to provide greater flexibility to the grid.

“APREN advocates for strategic alignment between the Ministries of Environment, Economy, and Finance to ensure the practical implementation of the established objectives,” they conclude.