PORTUGAL Trends and Developments Contributed by: André Miranda, Fieldfisher Portugal
The EU framework: RED III and the permitting mandate RED III is the driving force behind Portugal’s reforms. Beyond the 42.5% target, it modernises permitting on two fronts. On the planning side, it requires Member States to identify and map suitable areas for renew- able energy deployment and to designate, as a sub- set, renewables acceleration areas, where projects benefit from streamlined procedures on the basis that environmental impacts are expected to be lim- ited and manageable. The framework also extends to infrastructure, including grid and storage, which must be planned consistently with renewable deployment. The Directive further establishes the organisation and guiding principles of the permit-granting process, requiring Member States to streamline and coordi- nate all administrative steps through integrated pro- cedures, applicable both within acceleration areas and outside of them. It is precisely to give effect to these requirements that Portugal’s two policies are best understood, as instruments translating the Euro- pean framework into practical, investment-ready pro- cedures. RED III also gives particular attention to small-scale installations and active consumers. For certain cat- egories of projects, notably rooftop solar and similar small installations, permits are subject to very short deadlines. More broadly, renewable energy projects are recognised as serving an overriding public inter- est and the introduction of single contact points and digital procedures is intended to make the permitting process simpler, faster and more accessible to devel- opers, citizens and local communities. Law No 29/2026: accelerating decentralised self- consumption Law No 29/2026 addresses the distributed end of the market by introducing a set of measures aimed at accelerating decentralised renewable self-consump- tion. In particular, it amends Decree-Law No 15/2022 (which organises the National Electricity System) and the Portuguese Civil Code, and introduces three key pillars: (i) the creation of the renewable energy use contract ( contrato de aproveitamento energético reno- vável – CAER), (ii) the introduction of tacit approval mechanisms in the licensing of self-consumption
Renewable Energy Projects in Portugal: New Public Policies to Achieve the 2030 Decarbonisation Targets
In its updated National Energy and Climate Plan (NECP 2030), prepared in 2024 and formalised in 2025, Portugal revised its 2030 renewable energy tar- gets, aiming for renewables to reach 51% of gross final energy consumption. The headline electricity goals are 20.8 GW of solar (15.1 GW utility-scale and 5.7 GW decentralised), 10.4 GW of onshore wind and 2.0 GW of offshore wind. According to Directorate-General for Energy and Geol- ogy (DGEG) data, Portugal had 6–7 GW of installed solar capacity and around 6 GW of onshore wind by 2026. While solar deployment includes both utility- scale and decentralised generation, a substantial gap remains relative to the 2030 targets. Closing that gap within the remaining years will require a significant pipeline of new projects, creating a major opportunity for investment and economic growth. With some of Europe’s strongest solar and wind resources, Portugal is well placed to convert its existing project pipeline into installed capacity, pro- vided that enabling conditions are in place. Realising that potential will depend on making administrative licensing faster and more predictable, while continu- ing to ensure appropriate environmental and territo- rial safeguards. To that end, Portugal has advanced two complementary policies: the Sectoral Programme for Renewable Energy Acceleration Zones (PSZAER), currently in public consultation, and Law No 29/2026, published on 23 June 2026 and in force starting on July 1st, which simplifies licensing and promotes decentralised renewable generation. Both give domestic effect to the same European man- date, namely the revised Renewable Energy Directive (RED III), which amends the previous framework and raises the Union’s binding 2030 renewables target to at least 42.5%, with the aspiration to reach 45%. It also requires Member States to implement a range of measures, including streamlined and accelerated permitting processes. The shared objective is to make the deployment and use of renewable energy simpler, faster and more accessible to citizens, businesses, municipalities and local communities.
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